Transferring Unspent Revenue to the State Highway Fund
S.142 would require that any year’s General Fund Revenues not spent in general or supplemental appropriations be credited to the State Highway Fund. Currently these funds (when they exist) are credited to the Contingency Reserve Fund, which is used when needed to ensure the General Reserve Fund remains at its legally required balance. Excess revenues don’t need to be transferred to any fund, they should be returned to the taxpayers. Real reform would be abolishing the Contingency Reserve Fund not just redirecting its funding source. As we have said before, funding is not the principal issue with South Carolina road maintenance efforts.
(Related H.3011 would limit any projected increase in revenue after the House gives the budget third reading to being appropriated solely to the State Non-Federal Aid Highway Fund.)