SCDOT gets $52M advance to pay bills

COLUMBIA -- The federal government came to South Carolina's rescue today with a $52 million cash advance for the S.C. Department of Transportation.

Pete Poore, spokesman for DOT, said the money will be used to pay contractors across the state. The agency asked the federal government to provide the money in one lump sum, rather than have it spread out over the next 12 months, as it normally would have been, so DOT could sort out its cash flow problems.

The action comes following a series of stories by The Post and Courier last week revealing that DOT didn't have enough money to pay its bills. The agency has been late in paying contractors for repairs and improvements made to South Carolina's roads and bridges. Payments are usually made within 30 days, but DOT was providing the reimbursements 45 days after the work was compete, and even later in some cases.

Contractors and subcontractors told the newspaper that their businesses were in jeopardy. Most were reluctant to speak out publicly because they said they were afraid it would hurt their chances of getting state work again.

Gov. Nikki Haley preferred that the DOT, which she oversees, reach out to the federal government for help, rather than tap the state treasury. A loan from the state would come with interest.

Poore said the advance is for money the federal government would have reimbursed over the next year for payments on major construction loans to the state Transportation Infrastructure Bank. DOT will use other cash sources to make the loan payments going forward, Poore said.

"As soon as that money's in the bank in our accounts, we're going to start paying contractors," he said.

Doug Hecox, a spokesman for the Federal Highway Administration, said the federal reimbursement payment was processed Tuesday and is expected to be paid today.