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Recent crash crunch may cripple DOT
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by Kara Intrieri
Thursday, March 30, 2006
The Wisconsin Department of Transportation may not be able to afford necessary projects in the future due to recent budget problems, according to a DOT official.
"We are not in an immediate crisis, but there is cause for concern long term," Mark Wolfgram, DOT transportation investment management administrator, said in an e-mail.
Wolfgram attributed the problem to low revenue collections in the state — far below those assumed in the biennial budget.
"Each dollar we have is buying less, and we will have to delay some of this year's planned expenditures until next year in order to live within the revenues we have available," he said.
A special legislative committee was recently formed to address the current problems facing the DOT and will focus on finding new ways of completing projects and maintaining roads.
The committee will split its schedule into two phases: the first, will discuss the needs of the DOT, and the second, will look at how the department can change the way things are done within the department.
After holding only one meeting last week, the committee does not know the full extent of the problem, said committee co-chairman Rep. Mark Gottlieb, R-Port Washington.
"In the past, a lot of money was taken from the transportation fund and used to pay for non-transportation expenses," he added.
Another part of the problem, Gottlieb said, comes from a drop in the source of revenue for the DOT — as gas tax and vehicle registration fees comprise 90 percent of the DOT's revenue.
Wolfgram noted with gas prices on the rise, Wisconsin residents are either driving less, or they are driving more fuel-efficient vehicles, which has translated into lower revenue for the DOT.
"If prices continue to increase and revenues stagnate, revenues will not allow cost inflation to be offset by program increases, meaning real cuts in transportation programs," he said.
The DOT has been forced to find other means of funding, and consequently, Gottlieb said a large percentage of funds had to pay back bonds.
"We have relied more and more for transportation projects on borrowing the money to build them," he noted.
Gottlieb added since the DOT covers all forms of surface transportation, the problem could be extensive.
According to Wolfgram, funds from the department help cover a variety of transit operating and maintenance costs — including snow removal, highway surfacing and reconstruction, airport infrastructure improvements, and rail service repairs in Wisconsin.
Gottlieb specifically noted that Southeast Wisconsin's 50-year-old freeway system needs to be rebuilt, which could cost up to $6 billion.
But this project could not be completed under the current budget, prompting state officials to agree that it is necessary the Legislature come up with a solution.
"If we don't deal with these issues now, are we going to have the resources to do so 10-20 years down the road?" Gottlieb asked.
Wolfgram noted that without discussion, the problem will become increasingly serious over the next several years.
"We will highlight what is needed and why, and are hopeful that the dialogue will lead to solutions," he said.
Anonymous (March 31, 2006 @ 1:59pm):
We need more concise, cogent articles like this in every news outlet.
