#1South Carolina Transportation Infrastructure Bank Ways and Means Transportation & Regulatory Subcommittee Budget Hearing FY2019-2020 Appropriations Budget#2Key Officials Board Members John B. White, Jr., Chairman PO Box 3547 Spartanburg, SC 29304 Phone: (864) 585-5100 Mobile: (864) 706-8701 Email: [email protected] Ernest L. Duncan 2101 North Ridge Road North Augusta, SC 29841 Phone: (706) 799-2785 Cell: (706) 284-4654 Email: [email protected] [email protected] Senator Hugh Leatherman (H) 1817 Pineland Ave. Florence, SC 29501 (B) 111 Gressette Bldg Columbia. SC 29202 Phone: (803) 212-6640 Fax: (803) 212-6690 Email - [email protected] Harry B. "Chip" Limehouse III 8 Cumberland St. Charleston, SC 29401 (843) 577-6242 [email protected] Representative J. Gary Simrill 518C Blatt Bldg. Columbia, SC 29201 (803) 734-3040 Email - [email protected] Joe E. Taylor, Jr. 146 State Street West Columbia, SC 29169 Phone: (803) 765-2448 Mobile: (803) 261-1458 Email: [email protected] Ben H. Davis, Jr. (Until 1/17/19) PO Box 191 Columbia, SC 29202 Office: (803) 737-0013 Cell: (864) 980-5294 Email: [email protected] CFO Staff Listing Tami B. Reed, CGFO, CPM 955 Park Street, Room 120 B Post Office Box 191 Columbia, SC 29202-0191 Phone: (803) 737-2875 Fax: (803) 737-2014 Email - [email protected] Accounting Analyst Sheila P. Bryant 955 Park Street, Room 120 B Post Office Box 191 Columbia, SC 29202-0191 Phone: (803) 737-0094 Fax: (803) 737-2014 Email - [email protected] 2#3Agency Organizational Chart Seven Member SCTIB Board Mr. John B. White Jr., Chairman, Greenville, SC Mr. Ernest Duncan, Aiken, SC Senator Hugh Leatherman, Sr., Florence, SC H.B. "Chip" Limehouse, III, Charleston, SC Representative J. Gary Simrill, Rock Hill, SC Mr. Joe E. Taylor Jr., Columbia, SC Mr. Ben H. Davis, Jr., Greenwood, SC Program Manager III Tami B. Reed (1 FTE) Accounting Fiscal Analyst III Sheila P. Bryant (1 FTE) Administrative Assistant (Vacant) Accounting Fiscal Analyst II (Vacant) Accounting Fiscal Analyst II Vacant) Accounting Manager (Vacant) 3#4Executive Summary Highlights of the S.C. Transportation Infrastructure Bank The funding sources dedicated to the Bank by the General Assembly, such as truck registration fees, motor vehicle registration fees, and one cent of the gasoline fuel fees, have been used to provide financial assistance to more than $5.3 billion in highway road and bridge projects since 1997. Issuing bonds for major road construction completes the projects much sooner than with pay-as-you-go funding, thus increasing safety and mobility to the motoring public and improving economic development opportunities. Also, the roads and bridges are constructed at a lower cost as the cost of interest is less than the inflationary costs of highway construction and land acquisition. The success of the Bank is due to partnerships with counties, municipalities, and the SCDOT. These entities are the applicants to the Bank, and often provide a significant amount of funding to the projects. The South Carolina Transportation Infrastructure Bank continues to be recognized as the largest and most efficient State Infrastructure Bank, and has been named in Federal Highway Publications as a national model for the way progressive states can fund and build transportation infrastructure. Over one hundred projects in thirty four counties and municipalities have benefited from Bank funding by direct application for assistance, and partnerships with the SCDOT, including the design-build bridge replacement program. One partnership with SCDOT resulted in replacement of the Cooper River Bridges in Charleston County. The Bank provides assistance to the SCDOT, as well as counties and cities that submit applications. Bank's $5.3 billion in construction has a tremendous effect on the economy of the state Important role in economic development Clemson University International Center for Automotive Research (ICAR) Distribution Center in Berkeley County New infrastructure to encourage tourism in Charleston, Beaufort and Horry Counties Truckers now have a 4-lane Highway 17 from I-95 to Charleston Financing for the back-up dam at Lake Murray and 2 additional lanes of traffic - helping to protect Columbia from a disaster (pictured on cover page) Installation of cable barriers on interstate medians. The bank provided $30 million, and the barriers have experienced over 31,000 hits, saving hundreds of lives and preventing many serious injuries. Catalyst for over 100 projects in 29 counties and 5 municipalities By law, reviews applications for major projects (at least $25 million) with local participation Evaluation Committee uses 39 criteria similar to Act 114 to grade applications in consultation with SCDOT Every project and bond issue reviewed and approved by Joint Bond Review Committee and the SCDOT Commission Major contributions to SC economic development Built strong relationships with credit rating agencies and investment industry. 4#52020 Prioritized Budget Request FY 19-20 Budget Priorities Summary S.C. Transportation Infrastructure Bank Funding FTES Priority No recurring/other) Priority Title N/A Priority Description Non-Recurring Recurring Other Federal Total State Other Federal Total Budget Priorities Priority Type(non- recurring/ 5 LO#6Official Budget EBO See attached 6#76-1 AGENCY NAME: AGENCY COde: S.C. Transportation Infrastructure Bank U150 SECTION: 85 Fiscal Year 2019-20 Agency Budget Plan OPERATING REQUESTS (FORM BI) NON-RECURRING REQUESTS (FORM B2) CAPITAL REQUESTS (FORM C) PROVISOS (FORM D) FORM A - BUDGET PLAN SUMMARY For FY 2019-20, my agency is (mark "X"): Requesting General Fund Appropriations. ✗ Requesting Other Authorization. Not requesting any changes. For FY 2019-20, my agency is (mark "X"): Requesting Non-Recurring Appropriations. Requesting Non-Recurring Federal/Other Authorization. X Not requesting any changes. For FY 2019-20, my agency is (mark "X"): Requesting funding for Capital Projects. ☑ Not requesting any changes. For FY 2019-20, my agency is (mark "X"): X Requesting a new proviso and/or substantive changes to existing provisos. Only requesting technical proviso changes (such as date references). Not requesting any proviso changes. Please identify your agency's preferred contacts for this year's budget process. Name PRIMARY CONTACT: Tami Reed SECONDARY Phone Email (803)737-2875 [email protected] CONTACT: I have reviewed and approved the enclosed FY 2019-20 Agency Budget Plan, which is complete and accurate to the extent of my knowledge. Agency SIGN/DATE: TYPE/PRINT NAME: Tami B. Reed, CFO 01/21/18 This form must be signed by the agency head - not a delegate. Board or Commission Chair olm B. White, Jr., Chairman#86-2 AGENCY PRIORITY TITLE AMOUNT FORM B1 - RECURRING OPERATING REQUEST 1 Provide the Agency Priority Ranking from the Executive Summary. Adjustment to estimated expenditures. Provide a brief, descriptive title for this request. General: Federal: Other: -$152,010,270 Total: What is the net change in requested appropriations for FY 2019-20? This amount should correspond to the total for all funding sources on the Executive Summary. NEW POSITIONS N/A FACTORS ASSOCIATED WITH THE REQUEST STATEWIDE ENTERPRISE Please provide the total number of new positions needed for this request. Mark "X" for all that apply: X X Change in cost of providing current services to existing program audience Change in case load/enrollment under existing program guidelines Non-mandated change in eligibility/enrollment for existing program Non-mandated program change in service levels or areas Proposed establishment of a new program or initiative Loss of federal or other external financial support for existing program Exhaustion of fund balances previously used to support program IT Technology/Security related Consulted DTO during development Related to a Non-Recurring request - If so, Priority # Mark "X" for primary applicable Statewide Enterprise Strategic Objective: Education, Training, and Human Development STRATEGIC OBJECTIVES X Healthy and Safe Families Maintaining Safety, Integrity, and Security Public Infrastructure and Economic Development Government and Citizens#96-3 ACCOUNTABILITY OF FUNDS 1.1. Review financial capacity - Need to adjust estimates annually in order to accomplish the Agency's goal to maximize funding for major projects. RECIPIENTS OF FUNDS What specific strategy, as outlined in the FY 2018-19 Strategic Planning and Performance Measurement template of agency's accountability report, does this funding request support? How would this request advance that strategy? How would the use of these funds be evaluated? N/A JUSTIFICATION OF REQUEST What individuals or entities would receive these funds (contractors, vendors, grantees, individual beneficiaries, etc.)? How would these funds be allocated - using an existing formula, through a competitive process, based upon predetermined eligibility criteria? Act 40 of 2017 repealed Act 98 of 2013 which transferred $50 million in revenue from SCDOT to SCTIB. The last transfer was FY2018. The SCDOT decided to take over the remaining payments on all projects established under Act 98. The remaining funds held by the Bank will be expended in FY19. The program will no longer be needed in budget year FY20, thus all projected expenditures have been removed. New applications approved during FY19 will likely not incur any major expenses during FY20, as major construction projects take several years to complete. Once new applications are approved they are added to the financial plan of the Bank based on the project payout schedules provided. Budget authority is requested each year based on the forecasted financial needs of the Bank. In those years where revenue bonds are needed the budget authority requested will be adjusted accordingly. Please thoroughly explain the request to include the justification for funds, potential offsets, matching funds, and method of calculation. Please include any explanation of impact if funds are not received. If new positions have been requested, explain why existing vacancies are not sufficient.#106-4 FORM B2 - NON-RECURRING OPERATING REQUEST AGENCY PRIORITY N/A Provide the Agency Priority Ranking from the Executive Summary. TITLE AMOUNT FACTORS ASSOCIATED WITH THE REQUEST STATEWIDE ENTERPRISE STRATEGIC OBJECTIVES Provide a brief, descriptive title for this request. What is the net change in requested appropriations for FY 2019-20? This amount should correspond to the total for all funding sources on the Executive Summary. Mark "X" for all that apply: Change in cost of providing current services to existing program audience Change in case load/enrollment under existing program guidelines Non-mandated change in eligibility/enrollment for existing program Non-mandated program change in service levels or areas Proposed establishment of a new program or initiative Loss of federal or other external financial support for existing program Exhaustion of fund balances previously used to support program IT Technology/Security related Consulted DTO during development Request for Non-Recurring Appropriations Request for Federal/Other Authorization to spend existing funding Related to a Recurring request - If so, Priority #¸ Mark "X" for primary applicable Statewide Enterprise Strategic Objective: Education, Training, and Human Development Healthy and Safe Families Maintaining Safety, Integrity, and Security Public Infrastructure and Economic Development Government and Citizens ACCOUNTABILITY OF FUNDS What specific strategy, as outlined in the FY 2018-19 Strategic Planning and Performance Measurement template of agency's accountability report, does this funding request support? How would this request advance that strategy? How would the use of these funds be evaluated?#116-5 AGENCY PRIORITY N/A FORM C - CAPITAL REQUEST TITLE AMOUNT Provide the Agency Priority Ranking from the Executive Summary. Provide a brief, descriptive title for this request. How much is requested for this project in FY 2019-20? This amount should correspond to the total for all funding sources on the Executive Summary. CPIP PRIORITY Identify the project's CPIP plan year and priority number, along with the first year in which the project was included in the agency's CPIP. If not included in the agency's CPIP, please provide an explanation. If the project involves a request for appropriated state funding, briefly describe the agency's contingency plan in the event that state funding is not made available in the amount requested. OTHER APPROVALS LONG-TERM PLANNING AND SUSTAINABILITY What approvals have already been obtained? Are there additional approvals that must be secured in order for the project to succeed? (Institutional board, JBRC, SFAA, etc.) What other funds have already been invested in this project (source/type, amount, timeframe)? Will other capital and/or operating funds for this project be requested in the future? If so, how much, and in which fiscal years? Has a source for those funds been identified/secured? What is the agency's expectation with regard to additional annual costs or savings associated with this capital improvement? What source of funds will be impacted by those costs or savings? What is the expected useful life of the capital improvement?#126-6 NUMBER TITLE BUDGET PROGRAM RELATED BUDGET REQUEST REQUESTED ACTION FORM D-PROVISO REVISION REQUEST N/A Cite the proviso according to the renumbered list for FY 2019-20 (or mark "NEW"). Provide the title from the FY 2018-19 Appropriations Act or suggest a short title for any new request. Identify the associated budget program(s) by name and budget section. Is this request associated with a budget request you have submitted for FY 2019-20? If so, cite it here. OTHER AGENCIES AFFECTED Choose from: Add, Delete, Amend, or Codify. Which other agencies would be affected by the recommended action? How? SUMMARY & EXPLANATION Summarize the existing proviso. If requesting a new proviso, describe the current state of affairs without it. Explain the need for your requested action. For deletion requests due to recent codification, please identify SC Code section where language now appears.#136-7 FISCAL IMPACT PROPOSED PROVISO TEXT Provide estimates of any fiscal impacts associated with this proviso, whether for state, federal, or other funds. Explain the method of calculation. Paste FY 2018-19 text above, then bold and underline insertions and strikethrough deletions. For new proviso requests, enter requested text above.#146-8 FORM F-REDUCING COST AND BURDEN TO BUSINESSES AND CITIZENS TITLE Provide a brief, descriptive title for this request. EXPECTED SAVINGS TO BUSINESSES AND CITIZENS FACTORS ASSOCIATED WITH THE REQUEST What is the expected savings to South Carolina's businesses and citizens that is generated by this proposal? The savings could be related to time or money. Mark "X" for all that apply: Repeal or revision of regulations. Reduction of agency fees or fines to businesses or citizens. Greater efficiency in agency services or reduction in compliance burden. Other METHOD OF CALCULATION REDUCTION OF FEES OR FINES REDUCTION OF REGULATION Describe the method of calculation for determining the expected cost or time savings to businesses or citizens. Which fees or fines does the agency intend to reduce? What was the fine or fee revenue for the previous fiscal year? What was the associated program expenditure for the previous fiscal year? What is the enabling authority for the issuance of the fee or fine? Which regulations does the agency intend to amend or delete? What is the enabling authority for the regulation?#156-9 SUMMARY Provide an explanation of the proposal and its positive results on businesses or citizens. How will the request affect agency operations?#166-10 Agency Code: U150 Agency Name: Infrastructure Bank Board Section: 85 BUDGET REQUESTS FUNDING FTES Priority Request Type 1 B1 - Recurring Request Title | Adjustment to estimated expenditures State Federal Earmarked Restricted Total (152,010,270)| (152,010,270) State Federal Earmarked Restricted Total 0.00 2 0 0.00 3 0 0.00 4 0 0.00 5 0 0.00 6 0 0.00 7 0 0.00 8 0 0.00 9 0 0.00 10 0 0.00 11 0 0.00 12 0 0.00 13 0 0.00 14 0 0.00 15 0 0.00 16 0 0.00 17 0 0.00 18 0 0.00 19 0 0.00 20 0 0.00 21 0 0.00 22 0 0.00 23 0 0.00 24 0 0.00 25 0 0.00 26 0 0.00 27 0 0.00 28 0 0.00 29 0 0.00 30 0 0.00 TOTAL BUDGET REQUESTS 0 0 0 (152,010,270) (152,010,270) 0.00 0.00 0.00 0.00 0.00#172019 Proviso Requests Proviso # in FY 18- 19 Act 85.1. Transportation and Regulatory Subcommittee Proviso Request Summary FY 2019-20 Agency Recommended Action (keep, change, delete, add) Proviso Title Short Summary (IBB: Board Meeting Coverage) Requires live-streaming, recording, and archival of Board meetings on website. Keep Keep 88.1. 108.1. (SPA: Charleston Cooper River SPA Must pay STIB one million before Bridge Project) (PEBA: Lottery, Infrastructure Bank, and Magistrates Health Insurance) June 30, 2019 for Cooper River Bridge Project. Payments continue until 2027. Members are eligible to participate in the Keep State Health and Dental Insurance Plan, upon paying the full premium costs as determined by the Public Employee Benefit Authority. 7#18Sources of SCTIB Revenue State Sources: General Fund surplus of $66 M in FY 1997 (one-time) Truck Registration Fees 50% in FY 1999 and 100% thereafter Amount from SCDOT not to exceed proceeds from 1¢ per gallon of gasoline user fee Motor Vehicle Registration Revenues Portion of Electric Power Tax Other Sources: Horry County Loan I First $15 million per year from Hospitality Fees for 20 years (paid) Horry County Loan II Increasing amounts paid from Hospitality Fees for 22 years (FY2022) SCDOT Conway Bypass Loans II $7.6 million per year for 20 years beginning in 2000 Charleston County - Cooper River Bridge Project $3 million per year for 25 years ending in FY2028 SC State Ports Authority - Cooper River Bridge Project $5 million in FY2002, $15 million in FY2003 $1 million per year for 25 years ending in FY2027 SCDOT Cooper River Bridge Project - $8 million per year for 25 years ending in FY2027 Other Sources Cont. SCDOT - US17 Ace Basin Project repayment of $82 million loan @ $4.9 M a year until FY2037 SCDOT - Multi-Project Agreement Repayment of $94 million loan for various projects @ $10 M a year until FY2022 Florence County - Florence County Sales Tax Projects $125 million over 7 years from county local option sales tax beginning in FY2007 (Paid FY14) 80#19South Carolina Transportation Infrastructure Bank Act Budget Request Additional Information FY2019-20 Projected Revenues Truck Fees 35% $ 77,500,000 Motor Fuel Fees 13% 29,200,000 0% 1% DOT Contributions/Loans 16% 35,273,227 0% 11% Electric Power 2% 4,750,000 Motor Vehicle Fees 20% 44,200,000 20% State Ports Authority 0% 1,000,000 Interest 0% 1,000,000 Horry County 11% 23,871,134 16% 13% Charleston County 1% 3,000,000 2% 100% $ 219,794,361 ■Truck Fees ■Motor Fuel Fees ■DOT 35% Contributions/Loans Electric Power ■Motor Vehicle Fees ■State Ports Authority Interest ■Horry County ■Charleston County 9#20U150 Transportation Infrastructure Bank I. ADMINISTRATION PERSONAL SERVICE CLASSIFIED POSITIONS FY 15-16 Budget FY 15-16 Actual FY 16-17 Budget FY 16-17 Actual FY 17-18 Budget FY 17-18 Actual FY 18-19 Budget FY 19-20 Proposed GENERAL GENERAL TOTAL FUNDS FUNDS TOTAL FUNDS GENERAL FUNDS TOTAL FUNDS FUNDS GENERAL TOTAL FUNDS FUNDS GENERAL TOTAL FUNDS FUNDS TOTAL FUNDS GENERAL FUNDS TOTAL FUNDS GENERAL FUNDS GENERAL TOTAL FUNDS FUNDS 145,000 150,263 400,000 (2) OTHER PERSONAL SRVCS 25,000 (2) 31,067 (6) 162,796 (6) 400,000 173,602 400,000 400,000 (6) (6) (6) 75,000 23,332 25,000 29,029 25,000 (6) 25,000 TOTAL PERSONAL SRVC 170,000 (2) 181,330 (2) 475,000 (6) 186,127 425,000 202,631 425,000 (6) (6) (6) (6) 425,000 (6) OTHER OPERATING EXP OTHER OPERATING EXP DEBT SERVICE 225,276 261,125 275,276 194,816 282,870 191,048 282,870 282,600 SPECIAL ITEMS: TRANSPORTATION INFRA 255,000,000 87,982,762 TOTAL SPECIAL ITEMS 255,000,000 87,982,762 269,530,000 269,530,000 202,620,489 202,620,489 252,100,000 252,100,000 115,138,665 115,138,665 252,100,000 252,100,000 100,000,000 100,000,000 TOTAL ADMINISTRATION 255,395,276 88,425,217 270,280,276 203,001,433 252,807,870 115,532,344 252,807,870 100,707,600 (2) (6) (6) (6) (6) (6) (6) II. EMPLOYEE BENEFITS EMPLOYER CONTRIB 58,000 55,513 178,000 58,211 178,000 65,060 178,000 178,000 TOTAL FRINGE BENEFITS 58,000 55,513 178,000 58,211 178,000 65,060 178,000 178,000 TOT EMPLOYEE BENEFITS 58,000 55,513 178,000 58,211 178,000 65,060 178,000 178,000 TOTAL FUNDS AVAILABLE TOTAL AUTH FTE POSITIONS 255,453,276 88,480,730 270,458,276 (2) 203,059,644 (6) 252,985,870 115,597,404 252,985,870 100,885,600 (6) (6) (6) (6) Capital Expenditures Total Expenditures 45,160,920 133,641,650 10