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MoDOT prepares for day when funds may drop
Less driving means less tax money
by Ray Scherer
Wednesday, August 27, 2008
As Missourians curtail their use of gasoline by driving less or using more fuel-efficient vehicles, the state takes in less tax money, which could affect construction projects.

Photo by Eric Keith / St. Joseph News-Press / Purchase this photo

As Missourians curtail their use of gasoline by driving less or using more fuel-efficient vehicles, the state takes in less tax money, which could affect construction projects.

Imagine a world where major highway projects come to a halt because there’s not enough money to improve roads.

This scenario isn’t happening yet in Northwest Missouri. It could be a year or so away, however, as drivers continue to spend less money on gas purchases that help fund road work.

So far, Missouri is among a few states left in the nation to have escaped the phenomenon of reduced gas tax revenue for highways. A portion of consumers’ money spent at the gas pump goes into a state tax that the Missouri Department of Transportation uses.

According to the U.S. Department of Transportation, Missourians preliminarily drove more than 5.7 million miles in June, compared to more than 6 million miles in June 2007 — a reduction of nearly 5 percent.

Don Wichern, engineer for the MoDOT district office in St. Joseph, said the agency has so far withstood the national fuels downturn brought on by high fuel prices. But the safety net may not last much longer.

“Right now, we have not dropped any level of service,” Mr. Wichern said. “We have tried to become more green, or more efficient. It (less gas tax) hasn’t affected our projects yet.”

Among MoDOT’s recent cost-saving strategies are staggered, four-day work weeks, reduction in fleet vehicles, and sharing resources with adjacent districts.

Yet without a reversal in motorists’ habits and gas prices, Mr. Wichern admitted it’s possible the lighter highway miles will eventually catch up with the Northwest district. The first wave could arrive sometime after July 2009 — the startup of a new fiscal year.

“New projects won’t exist,” he said. “Major projects will come to a standstill.”

Maintenance projects would then take over the bulk of the agency’s work. It would take time for motorists to notice the switch in emphasis, Mr. Wichern said.

“Numerous states have already delayed projects due to the fuel,” he said. “States are asking us how we’re doing it. Kentucky and Kansas want to talk about practical design.”

Practical design is a concept MoDOT introduced three years ago that aims to customize construction projects to fit specific needs. The agency also has succeeded in recent years with bottom-line budgets that cap project costs from reaching 10 percent over their estimate. It’s a problem that other states’ transportation departments often encounter, Mr. Wichern said.

More people will choose to return to the roads if and when gas prices ease, he said. That will enliven the coffers for highway projects.

“We’re just linked to travel,” he lamented.

Meanwhile, a shortfall continues in gas taxes that supply a federal Highway Trust Fund. Transfers into that fund are part of a 2009 transportation spending bill due to come before the U.S. Senate in September. The federal fuel tax is 18.4 cents per gallon of gas and 24.4 cents for diesel.

“That would force us to delay projects, which we haven’t had to do yet,” Mr. Wichern said of the impact of federal dollars.

Missouri’s tax on unleaded and diesel fuel has remained flat at 17 cents a gallon since 1992.

Ray Scherer can be reached at rscherer@npgco.com.

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Posted by MichaelH on August 27, 2008 at 8:19 a.m. (Suggest removal)

Japans response to the oil crisis in the 1970s resulted in immersing themselves in a new, ever-changing field of technology. Electronics. Where are they today?

What did we do? Drove 55MPH, and created a couple of governmental agencies and programs (Department of Energy, Federal Energy Office, and this is the good one, "Strategic Petroleum Reserve Act).

Japan said, "let's change it."

America said, "let's deal with it."

Once again we're forced to deal with the situation of an oil crisis. Are we going to demand the government "fix" it this time or have we learned something?

American politicians. Planning to make plans. That's their way.

How about removing oil from the equation? In a realistic timeline, not a "time horizon." Tell the middle-east to knock theirselves out with all their gooey oil and when they start to fight over it...

LET 'EM! It's not our problem.


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