SC Commerce is $150M over on Scout Motors site work. House budget doesn’t cover it
Absent from the South Carolina House Ways and Means Committee’s $15.4 billion budget proposal is any money to help the Department of Commerce cover the cost of overruns in preparing the Scout Motors site for development.
Commerce asked budget writers for $150 million to help pay for overruns, much of which it said were related to wetlands mitigation work. But when the House budget writing committee approved its spending proposal Wednesday, it left out any cash to help pay for the overruns.
“We are still working through what they need, who’s owed what, and whether that number is solid or not,” Ways and Means Chairman Bruce Bannister, R-Greenville, told reporters Wednesday.
Bannister added questions remain of how the project went $150 million over budget.
“Commerce still has some questions to answer. So we didn’t believe now is the time to start trying to add additional money to Commerce, until we get more of those answers,” Bannister said.
Secretary of Commerce Harry Lightsey presented the request in January to House budget writers who expressed concern.
Lawmakers in 2023 allocated $1.3 billion for an incentive package to bring the Scout Motors electric vehicle plant to Blythewood. In return, the company agreed to build their factory here and provide 4,000 jobs. The plant is estimated to cost $3 billion, which is higher than the originally estimated $2 billion the company planned to spend.
Commerce was clear the additional money would not go to Scout Motors, but rather contractors hired by the state to carry out its end of the development agreement.
The state’s work included building a railway bridge over Interstate 77 to the Blythewood industrial park site, building a new I-77 interchange to serve the eventual factory, additional road improvements, electrical work, and water and sewer infrastructure.
With the House scheduled to begin debate on the budget March 9, adding money for Commerce on the House floor is unlikely. However, Commerce could make the pitch to the state Senate Finance Committee to providing additional cash for the project.
“While we cannot speculate on what would happen without the non-recurring appropriation, ... we will continue to work with the General Assembly and state leadership to identify solutions to complete South Carolina’s commitment for the site,” Commerce spokeswoman Alex Clark said in a statement
