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The South Carolina state Senate on Wednesday approved a road bill that would dedicate $400 million a year of recurring revenue to highway upgrades without raising the state's gasoline tax.
The Senate rejected a proposal by Sen. Hugh Leatherman, a Republican who chairs the Senate Finance Committee, to use $200 million per year of the recurring revenues to support $2.2 billion of bonds for interstate highway upgrades.
The Senate measure amends an infrastructure bill approved by the House that included a 10 cent per gallon increase in the South Carolina's 16 cent per gallon gasoline tax, which is one of the lowest in the U.S. The tax generates about $480 million per year.
Gov. Nikki Haley asked for the gasoline tax increase in her executive budget for fiscal 2017, but said this week that she favors the Senate plan.