South Carolina

To say South Carolina has some infrastructure problems is to put it mildly. The state’s roads are the most underfunded in the land and, partially as a result, the fatality rate is the nation’s third-highest per mile. Problems are particularly acute on the 25,000 miles of secondary roads that aren’t eligible for federal aid. “We’re lagging further and further behind,” says Elizabeth Mabry, director of the Department of Transportation.

To be sure, the degree of difficulty here is particularly high. Only a small handful of other states have more roads to take care of, and a disproportionate number in South Carolina are narrow and poorly lit two-lane roads that wind their way through rural counties. Repairs tend to be done in reaction to major problems, and as a result may be more costly in the long run than regular maintenance would be. “The chip seals we’re doing today should have been done five years ago,” says Don Freeman, the state highway engineer. “We’re using Band-Aid approaches, not preventive maintenance.”

The seriousness of the infrastructure problem is doubly disconcerting because the state government here does many things quite well. The state has an outstanding personnel system, with flexible hiring and innovative recruitment, including a new coordinated approach that tracks down hard-to-find health care workers, and a workforce plan that is one of the best in the country. Financial management is also handled very well. Agencies generate detailed accountability reports for the legislature that provide meaningful performance measurement data. Even the beleaguered Transportation Department does a good job of evaluating the condition of its assets and works well with contractors and with local communities.

Money B+ Long-Term Outlook Budget Process Structural Balance Contracting/Purchasing Financial Controls/Reporting People A- Strategic Workforce Planning Hiring Retaining Employees Training and Development Managing Employee Performance Infrastructure C+ Capital Planning Project Monitoring Maintenance Internal Coordination Intergovernmental Coordination Information B Strategic Direction Budgeting for Performance Managing for Performance Program Evaluation Electronic Government • Population (rank): 4,012,012 (26) • Average per capita income (rank):    $26,132 (42) • Total state spending (rank):    $20,009,040,000 (22) • Spending per capita (rank):    $4,876 (19) • Governor: Mark Sanford (R) • First elected: 11/2002 • Senate: 46 members: 19 D, 27 R • Term Limits: None • House: 124 members: 50 D, 74 R • Term Limits: None

The bottom line is that South Carolina’s government does well at tasks that don’t require huge sums of money. When money is an issue, the results aren’t so good. For roads and bridges, the revenue system is at the heart of the issue. Infrastructure is short-changed because the state’s low gas tax hasn’t been raised since 1987, when it went up 3 cents. The state relies on its gas tax for 89 percent of total recurring state transportation dollars, compared with 49 percent for other states in the region. So it’s no surprise that drivers in many South Carolina counties are risking their lives when they travel.

Well, then, isn’t it time for a little tax increase? Maybe, but Governor Mark Sanford is making frugality his middle name. When repairs were needed on the governor’s mansion, Sanford moved his wife and four sons into the pool house rather than expend any money for additional living expenses. In the past year, his office has blasted state spending policies, claiming that South Carolina government costs 29 percent more to run than the national average. These figures have been widely challenged. A study by the state’s Office of Economic Research says government administrative costs are nearly a quarter less than the national average, and that the same is true for spending on public safety, environment and housing.

Sanford has been eager to reorganize the state government to increase executive power, which has historically been weak. One of the obstacles to his proposed reforms may be that the state’s current, if unusual, managerial systems have worked so well. Its unique Budget and Control Board is a relatively independent management agency, where many senior staffers have been on the job for more than a dozen years. It is chaired by the governor but includes the separately elected comptroller, treasurer and two legislators. While technically it’s an executive branch agency, it provides assistance to both the legislature and executive, and the legislature has given it increased authority and responsibility over the years. One particularly critical benefit: Since the legislature has grown to trust the budget board, it has permitted it to pilot programs without approval. This has given South Carolina a reputation as an innovative state — especially in human resources.

For additional data and analysis, go to: http://results.gpponline.org/southcarolina

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