Wisconsin's Real Road Costs Bust Expectations

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DALLAS -- The fight over highway funding in Wisconsin has heated up with the release of a legislative audit that found the cost of 19 major highway projects in the state doubled between their inception and completion.

The report released Thursday by the Legislative Audit Bureau said the state spent $1.5 billion on the projects completed between 2006 and 2015, approximately $772.5 million more than originally estimated.

Another 16 projects that were under construction as of August have experienced even more significant overruns, the audit revealed. Those projects were originally expected to cost $2.7 billion in estimates provided to the Legislature but their completion is now estimated at $5.8 billion.

The Wisconsin DOT failed to take into account the effect of inflation or design changes on the projects, even though some of them extended over 18 years or more, said state auditor Joe Chrisman.

Both sides in the dispute over state transportation funding used the audit to provide support for their position.

Assembly Speaker Robin Vos, a Republican from Rochester, and other advocates for more transportation funding cited the under-estimating of project costs as evidence that the projected shortfall in the state's highway budget is worse than expected.

The Legislative Fiscal Bureau said in August that Wisconsin needs $939 million over the next two-year budget cycle to keep transportation funding at the current level.

"The legislative audit is yet another independent report that illustrates construction delays are driving up costs unnecessarily, our road conditions are only getting worse, and a long-term solution is needed," Vos said. "It's clear Wisconsin is trying to do too much with too little and taxpayers are not getting their money's worth."

Vos proposed a legislative agenda last week that called for an additional $300 million of transportation funding over the next two years through an increase in the state gasoline tax or vehicle registration fees.

An increase of 4.5 cents in Wisconsin's current gasoline tax of 32.9 cents per gallon would resolve the funding situation, said Vos, who favors tolling over a tax increase.

Republican Gov. Scott Walker, who opposes an increase in the state's gasoline tax, and his legislative allies contended the audit revealed the potential for significant cost savings that could be realized by the Wisconsin Department of Transportation from existing revenues.

Walker spokesman Tom Evenson said the calls for more revenue overlook the audit's finding that project cost estimates by highway planners at Wisconsin DOT were far too optimistic.

"The bottom line is we shouldn't even be thinking about raising the gas tax or fees until we find every last cost savings at the DOT, and the audit shows we can find more savings," Evenson said. "We welcome the opportunity to deliver services taxpayers expect at a price they can afford."

Republicans have a 20-13 majority in the state Senate and a 64-35 majority in the General Assembly.

Rep. Peter Barca, leader of the Democratic minority in the General Assembly, said the Republicans who have controlled state government since 2011 have let down Wisconsin taxpayers.

"The Republican leadership's neglect of our roads is as inexcusable as it is unacceptable," Barca said. "Our crumbling infrastructure is costing taxpayers and hurting our economy. We are in a crisis state, and we need to take immediate action."

Walker proposed a transportation plan in mid-September that would reduce overall state transportation spending to $6.5 billion over the next two years, down from $6.8 billion in the current biennium.

Walker's proposal would be funded with the help of $500 million of new transportation debt, including $473.9 million of transportation revenue bonds and $26.1 million of state general obligation bonds for port and freight rail projects.

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