MoDOT budget to be slashed as transportation funding runs out, major restructuring plan announced

Today MoDOT announced a plan to undertake a major organizational shake-up and reduction in personnel and budget as the result of funding reductions.

Waiting for MoDOT by zaskem on FlickR
Waiting for MoDOT by zaskem on FlickR

MoDOT leadership has been warning for years that MoDOT funding was set to "go off a cliff" starting in about 2009. The day of reckoning was put off for a while by federal stimulus funds, but now that those have run out, the agency is facing major budget cuts.

The core reason for the cuts is that federal and state fuel taxes--the major sources of funding for MoDOT--were set in the early to mid 1990s and have not been increased since then. That means that inflation reduces their purchasing power by about 3% annually--and taxpayers enjoy an annual 3% tax cut in their fuel taxes.

But after nearly two decades of these automatic annual tax cuts, the purchasing power of MoDOT's funding is greatly reduced--a dollar today only buys 60% of what it did in 1991, for example.

So when you look at MoDOT's budget today, which is about half of what it needs to be to maintain Missouri's roads in decent shape--that's why.  It's not some nefarious bureaucratic scheme or that the money has been wasted somewhere.  It's just the natural result of inflation over two decades.

Below is MoDOT's press release on the planned restructuring, and below that a response from the Missouri Transportation Alliance:

Transportation Funding Crisis Forces Bolder Direction for MoDOT

Reduction in Staff, Facilities and Equipment Will Save $512 Million

JEFFERSON CITY - Faced with a severe decline in funding and the inability to match federal funds in the near future, Missouri Department of Transportation Director Kevin Keith today presented a plan to the Missouri Highways and Transportation Commission that includes reducing the size of the department's staff by 1,200, closing 135 facilities and selling more than 740 pieces of equipment.  By 2015, the proposed direction will save $512 million that will be used for vital road and bridge projects.

"We asked the director to put forth a bold plan of action to address our transportation funding crisis, and he delivered," said Commission Chair Grace Nichols.  "We don't like having to head in this direction, but the reality of our funding situation makes it necessary."

For the past five years, Missouri's state highway construction program has averaged $1.2 billion a year.  Today, MoDOT presented a new, five-year construction program to the commission that is only half that amount - about $600 million a year. 

 "We are facing a transportation funding crisis in Missouri," MoDOT Director Kevin 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."

The department's plan includes reducing the number of its district offices, which administer the state's transportation program at the regional level, from 10 to seven.  MoDOT's current district boundaries have been virtually unchanged since 1922, when many state roads were still gravel and MoDOT used mules and wagons. 

MoDOT will close its district offices in Macon, Joplin and Willow Springs, but will continue to maintain area offices in those cities and have a strong presence in every county in the state, Keith said.  A map showing the proposed districts can be found at http://www.modot.org/.

This consolidation, coupled with the combination of several Central Office divisions, will enable the department to reduce the size of its workforce by 1,200, the number of its facilities by 135 and its equipment inventory by more than 740 pieces.  The staff reduction will occur through attrition and transfers, and, as a last step, layoffs.

"We don't like having to do this, and we aren't proposing these changes lightly, because we know they will be personal and painful for many people, but heading in this direction is the right thing to do.  It's what we have to do to survive," Keith said.  "Without these actions, Missouri would lose millions of dollars in federal funds for transportation."

MoDOT will hold community briefings throughout the state over the next month to explain the new plan.  The commission is expected to act on the proposal at its June 8 meeting.  If approved, the recommendations will begin to be put into place immediately with full implementation scheduled for December of 2012.

More information can be found at http://www.modot.org/.

 

 
 
Missouri Transportation Alliance Statement on MoDOT Restructuring:
 

Jefferson City, MO (May 4, 2011) ? Statement from Bill McKenna, MoTA spokesperson and former Missouri Highways and Transportation Chairman on MoDOT restructuring:

Today, the Missouri Department of Transportation announced a major restructuring due to the unprecedented transportation funding crisis in our state. These cuts are painful, they are deep and they will impact every Missourian; the cuts highlight the urgent need to resolve Missouri's transportation funding shortfall.

This is a natural response to the funding crisis. MoDOT cannot be expected to deliver the same level of service with less than half of the funding they've had for the previous five years. Today's announcement is going to result in a significant reduction in the level of service that Missourians have received from MoDOT over the last five years.

MoDOT, like the rest of state government will try to do more with less, but this is a situation where clearly, less is less. MoDOT will work very hard to maintain the system and hold our own on 3,000 deficient bridges. But our state's transportation infrastructure will quickly fall short of Missourians expectations and demand for safe roads and bridges and the growing needs for transit and other modes that propel our economy.

The Alliance is working with citizens and stakeholders around the state to find a solution: A long term plan and funding solution that maintains our infrastructure, meets our future needs, grows our economy, and keeps us safe. Missourians must commit to funding transportation and make it a priority in the very near future in order to create jobs and keep Missouri families safe on our roads.


To learn more about becoming an active supporter of the Alliance or to provide your input on how Missouri's transportation system can meet the safety and economic needs of Missouri, visit www.missouritransportation.org.
 

About the Missouri Transportation Alliance

The Missouri Transportation Alliance (MoTA) is a nonpartisan, citizen-led group of transportation stakeholders, business and labor organizations, and community leaders who believe Missouri's transportation infrastructure is critical to citizen safety and job creation. MoTA conducted more than 200 public meetings over 18 months in all ten MoDOT districts, to both inform the public about Missouri's current transportation situation and seek input on the regional priorities that should be considered in developing a new vision. MoTA has defined the need and is now developing a funding solution for a comprehensive transportation plan.

 

Photo credit: Waiting for MoDOT by zaskem on FlickR, under a Creative Commons license.

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