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.
