South Carolina's DOT Funding Predicament

The S.C. Dept. of Transportation is so broke that it won't be able to pay its contractors after meeting its payroll. It is depending on a payment from the FHWA and requesting additional reimbursements while rejecting federal funds for education.

"The governor gave the nod to South Carolina Dept. of Transportation to turn to the federal government for its cash flow problem. But she supports state Superintendent of Education Mick Zais in turning down $144 million in federal cash for schools, allowing the money to be divided up among other states."

"The solution to our education challenges is not a federal bailout," declared the governor's spokesman.

South Carolina Gov. Nikki Haley's Democrat opponents were quick to charge 'hypocrisy' and that she was trying to seek favor from the Tea Party constituency which recently made charges against here.

However, by essentially placing the solvency of her DOT in the hands of the US DOT, specifically the the highway trust fund, she placed her transportation department's future in the timely reauthorization of the transportation bill, which, as the NYT editorial notes on Aug 16, is far from certain:

"Reports suggest that some House Republicans may push to let the tax lapse or use the threat of expiration as leverage in the budget wars."

Thanks to DC Streetsblog

Full Story: State DOT could be broke within weeks without help

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