H.4478 mandates that all fines South Carolina receives from the federal government for plutonium storage at the Savannah River site must be given to the State Highway Fund and used for road maintenance, construction, and repair.

While this sounds like a good idea, studies have shown that dedicated revenue streams have a tendency grow government without having any impact on the expenditures to which they are tied. A better approach would be to direct the fine revenue to the general fund, and then prioritize roads in our general spending.

By South Carolina Policy Council

Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.