South Carolina Update

Presented by: Secretary of Transportation Christy A. Hall, P.E.

SCDOT Operational Update relative to COVID-19

ü Implemented modified agency operations to protect our workforce, industry colleagues and the public.

ü Maintain fully operational Rest Areas with enhanced cleaning cycles.

ü Trucking waivers to assist the supply chain.

ü Instituted a Joint Workforce Safety Plan to keep our road and bridge projects moving forward.

ü Increased efficiency of construction by allowing longer lane closures due to the lower traffic volumes.

ü Monitoring traffic flows throughout the state.

2

South Carolina Statewide Averages Traffic Volumes continue to climb

Travel patterns are above pre-COVID levels and within 5% of seasonal

volumes.

This is a leading indicator of gas tax revenues, which underpins SC’s road and

bridge construction program.

3

COVID-19 Revenue Outlook

Ø Reduced traffic volumes will likely result in reduced gas tax revenues.

Ø Tax Relief measures including deferrals and grace periods complicate the visibility into the revenue stream.

Ø Virus has triggered economic contraction; duration and depth are unclear.

4

Initial Projected COVID-19 Revenue Impactsas of May 2020

5

Gas Tax and Car Sales Tax collections in theshort-term are projected to be $78 Million lower. Or 8% down.

Our long-term projection held it 8-14% down.

July update pendingTraffic flows have bounced back in SC

Financial Priorities

Ø Maintain core operations.

Ø Continue our road and bridge construction.

Ø Maintain liquidity for a potential second wave of the virus.

Ø Advance new projects aligned to revenue receipts.

6

Actions Taken to Effectively Manage & Protect SCDOT’s Financial Position

Ø Several austerity measures have been implemented in order to reduce and tightly manage internal operating expenses.

Ø Analyzed the existing construction program to ensure that all contractual obligations can be met with no delay or interruption in payments. This includes analyzing the projects in the May, June, and July lettings in order to verify that SCDOT is ready to receive bids and award those projects.

Ø Pace the start of new projects to align to cash on hand rather than anticipated cash.

7

SCDOT Construction Program Trendlines

$1.59Bin

construction work

remaining to complete

8

Next Steps

Ø Actions implemented already will help us get through the current situation in a way that protects core SCDOT functions, while also providing a financial backstop for a possible second wave of the virus.

Ø Continue to track actual performance of the revenues and update projections.

Ø Determine what, if any, further adjustments need to be made to SCDOT’s operations as we gain visibility into the actual financial impacts over the next several months.

Ø Primary Objective is to keep the road and bridge program healthy and strong.

9

A Look Ahead

Ø Carolina Crossroads (Design/Build).Ø Phase 1 - Procurement underway Ø Phase 2 – Procurement begins 3rd Quarter 2020Ø Phase 3 – Procurement begins 1st Quarter 2022

Ø Panthers Interchange (Design/Build).

Ø US 17 Widening (Bid/Build).

Ø Recently approved $562 Million paving program.

10

South Carolina Update

Presented by: Secretary of Transportation Christy A. Hall, P.E.