Give them your money

March 25, 2003

Ocean's 11, ocean-to-ocean, what's the difference?

For those of you who have a true passion for Las Vegas, the movie "Ocean's Eleven" is worth a night on the couch. It's about a group of 11 con artists, thieves and hoodlums who conjure up a plan to steal $150 million from the Bellagio, MGM Grand and the Mirage casinos. After cracking the most secure area in the country, located in the bowels of the Bellagio, they literally walk out the front doors with cash in hand.

Ocean's 11, ocean-to-ocean, what's the difference?

For those of you who have a true passion for Las Vegas, the movie "Ocean's Eleven" is worth a night on the couch. It's about a group of 11 con artists, thieves and hoodlums who conjure up a plan to steal $150 million from the Bellagio, MGM Grand and the Mirage casinos. After cracking the most secure area in the country, located in the bowels of the Bellagio, they literally walk out the front doors with cash in hand.

As we stroll through FY 2003, states--from the Atlantic to Pacific oceans--are pulling the same stunt. Officials are just waltzing out the front doors of the local department of transportation office--with cash in hand.

The Kansas Department of Transportation conducted a survey in January to determine the fiscal conditions of states and the effects on the DOTs. A total of 24 states responded to the four-question study, and most are sending out $.O.$. distress signals.

In Arizona, transportation funds are being used to reduce the state deficit for the next two years. For FY 2003 approximately $82 million of transportation funding has been approved or proposed to help fund highway patrol functions. In addition, $20 million of state infra-structure bank funds have been proposed to revert to the general fund. The governor has proposed two money-swiping measures for FY 2004. The first uses $75 million to again fund highway patrol functions, while the second calls to revert $128 million of vehicle license tax revenues--which would go to the DOT--to the general fund.

In the curious state of Kansas, actions totaling over $315 million in resource reductions have been made in the amount previously pledged to fund transportation. The actions include the redirection of funds to other state agencies, reverse transfers to the state general fund, elimination of the repayment of a loan made from the state highway fund to the general fund and the elimination of demand and revenue transfers from the general fund to the highway fund and the special city and county highway fund.

There is no longer a wrestler running the business of Minnesota, but there is a bully stealing lunch money. Three years ago MnDOT received $282 million in one-time general funds to jump-start backlogged construction projects. The pile of emergency cash had to be spent by June 2003. MnDOT was on pace to meet this goal, but the new administration has proposed to take back $130 million and replace the money with bonds.

The DOT vault is open in Nebraska, too, and the situation is turning progressively worse. Last year $14.4 million of the sales tax on motor vehicles was transferred from the state highway fund to the cash reserve fund. But since Jan. 8, 2003, several bills have been introduced that would take more away from the highway fund. These transfers range anywhere from $500,000 to $80 million.

Two states, Ohio and Oregon, do have DOT security systems in place. According to the Ohio constitution, gas tax dollars cannot be diverted to help offset any budget deficit. Improving the mood is support from the governor, who recently came out and said he was all for a six-cent gas tax increase for state, county and municipal road and bridge infra-structure.

State highway fund revenues also are constitutionally dedicated in Oregon.

We need more O-language in this country. At the federal level, firewalls are supposed to prevent present and future administrations from hooking into any portion of the Highway Trust Fund. Instead of running their fingers through DOT revenue, more governors need to have the guts to raise taxes.

If the situation continues to darken, we just may see a state denied federal highway funding because of its inability to provide a 20% match. Can this really happen? Can 11 guys really walk out of the Bellagio with $150 million? It makes you wonder.

About The Author: Bill Wilson is editor of Roads & Bridges.

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