SCDOT projects $78 million revenue reduction

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The S.C. Department of Transportation projects a $78 million revenue reduction as a result of the COVID-19 pandemic’s effect on gas tax and car sales receipts.

The forecast predicts a $54 million shortfall in gas tax revenue and a $24 million decrease in vehicle sales tax through July, according to a news release from SCDOT.

Traffic volume across the state is edging back up in May after dropping significantly in April, according to the release. Compared to 2019, March traffic volume dropped approximately 20% and April volume dropped 45%. May volume is down 25%.

“We expect traffic volumes to continue to climb as the state emerges from the pandemic, and we expect the revenue gap to close over time,” Secretary of Transportation Christy Hall said in the release. “Like everyone else trying to forecast the economic impact of this virus, it is unknown whether it will take six months or more than a year for revenues to return to pre-pandemic levels. At this time, we are conservatively planning for a longer recovery period that may last as long as two years with a potential $293 million total impact. We will update that projection as we see what unfolds through this July.”

SCDOT has cut its budget by 11% for the remainder of the fiscal year.

“We are confident that the planning and preparation we have done will allow us to manage through this with no disruption to our core priorities including the road and bridge projects currently under construction,” Hall said.  “We will closely monitor the situation over the next several months and plan to continue to advance our road and bridge program aligned to the revenue stream.”