MDOT: Cut, Close and Sell

Missouri Department of Transportation director Kevin Keith last week announced a plan to dramatically cut the agency in a bid to redirect funds to road and bridge projects.

The plan submitted to the Missouri Highways and Transportation Commission would cut 1,200 jobs, calls for the closure of 135 facilities, and the sale of 740 pieces of equipment.

It would save $512 million by 2015 which could go to fund projects. The commission has exhausted its bonding capacity and savings are needed for the state to capture matching federal dollars.

The agency will spent $600 million annually over the next five years on road and bridge projects after averaging about double that over the past five years.

“We are facing a transportation funding crisis in Missouri,” Keith said.  “Over the past year, we have worked hard to reduce the size of our workforce and cut costs, but it isn’t enough.  We must take further action to become the right size to serve our customers given the severe reduction in funding for transportation.”

For reprint and licensing requests for this article, click here.
Transportation industry
MORE FROM BOND BUYER