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| January 21, 2011
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Kansas Governor Proposes $200M Withdrawal from State Highway Fund |
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Kansas Gov. Sam Brownback last week proposed using $200 million in funds set aside for highway projects to prop up general government programs.
Brownback's proposed budget would transfer the highway funds into the state's main bank account, where it can finance aid to public schools, social services, and other programs, The Associated Press reported. The transfer would help close the nearly $500 million budget gap the state faces for Fiscal Year 2012. Landon Fulmer, the governor's policy director, told the House Appropriations Committee that it would be a one-time transfer. Fulmer added the transfer would not change the 10-year, $8.2 billion transportation program approved by legislators last year. Kansas Transportation Secretary Deb Miller sent a letter to stakeholders in the state informing them of the budget proposal. "You may not be surprised to learn that the state is still faced with the same challenges as the last two fiscal years -- significant budget shortfalls -- and once again, the State Highway Fund is needed to help the state budget," Miller wrote. "The good news is that KDOT can still honor the promises made under [the 10-year transportation program] T-WORKS, thanks to low bid prices and low inflation rates." Miller's letter continued, "If we are to deliver T-WORKS, there's no room left for future transfers from the State Highway Fund to the State General Fund and we have to hope that our inflation assumptions are conservative enough. Should inflation begin growing sooner or grow faster than estimated or any additional losses of revenue occur, projects will be affected." Originally, KDOT planned to spend about $450 million annually in preservation over the next 10 years to maintain state highways at a high performance level. Because of the savings KDOT has been experiencing due to low to no inflation, the department anticipates being able to do the same amount of work for an annual average cost of $420 million over the next 10 years -- a savings of $300 million from original projections assuming inflation remains at 0% for the next two years and future inflation is equal to or less than the assumed inflation rate of 3.5% for 2013-15 and 4.5% in 2016 and beyond. KDOT Releases 10-Year Performance Report Earlier this month, KDOT released a report on its activities for the 2001-10 decade, calling the period "a decade of projects, progress, and engagement." The decade began as KDOT was embarking on the Comprehensive Transportation Program and ended with the May 2010 passage of the T-WORKS strategic program. (T-WORKS stands for "Transportation Works for Kansas"). In between were 5,700 road projects undertaken, 900 bridges replaced or repaired, more than 1,000 miles of rail track rehabilitated, new runways paved across the state, and tens of thousands of jobs created or sustained. "The support of the state's leaders and dedication of KDOT workers helped us build a highway system ranked the nation's best," Miller said in a statement issued with the report. "As a result, Kansas is well-positioned to seize the opportunities that will come with economic recovery." The 50-page report is available at bit.ly/KDOT2001-10. Questions regarding this article may be directed to editor@aashtojournal.org. |