WVDOH shifts to maintenance role
- From: "Sherman L. Cahal" <shermancahal@xxxxxxxxx>
- Date: Fri, 8 Aug 2008 14:35:34 -0700 (PDT)
http://www.wvgazette.com/News/200807290694
DOH shifts to maintenance role
Road-building costs up 71 percent since 2003
By Phil Kabler, Charleston Gazette, July 30, 2008
CHARLESTON, W.Va. - Faced with declining revenues and soaring costs
for construction materials, the state Division of Highways is shifting
from road building to maintenance of existing highways and bridges,
state Transportation Secretary Paul Mattox told legislators Tuesday.
"We're transforming the Division of Highways into more of a
maintenance organization to maintain our bridges and highways," Mattox
told an interim Finance Committee.
The main source of funding for DOH, the state Road Fund, is projected
to slowly but steadily decline as high gas prices reduce travel. That
will reduce revenue from the state gas tax, the major component of the
fund, Mattox said.
"We're projecting state Road Fund revenues will remain flat," Mattox
said.
Projections are that the Road Fund will decline from $660 million in
the current budget year to $648 million in fiscal 2012-13, as drivers
cut back on travel and gradually switch to more fuel-efficient
vehicles.
Meanwhile, Mattox said federal road funds are projected to decline by
about $25 million in the current budget year, to $325 million - and
that decline could be much more severe if Congress and the president
don't approve a $3.2 billion bailout to offset deficits in federal
highway fund collections.
Without the bailout, federal funding to the state will be cut by $119
million, to $206 million for fiscal 2009.
Even if Congress passes a bailout bill, Mattox said President Bush has
indicated he will veto it.
Also, Appalachian Regional Commission funding for construction of the
Appalachian corridor highways is projected to drop from $85 million to
$32 million, beginning this fall, Mattox said.
Meanwhile, Mattox said costs for road-building materials have jumped
71 percent since December 2003.
The price of asphalt is up nearly 82 percent, while the price of
structural steel has jumped 134.7 percent in that period, he said.
Senate Finance Chairman Walt Helmick, D-Pocahontas, noted that while
the division has about $505 million in road construction projects
underway, higher material costs effectively means those projects are
scaled back.
"In reality, it's more like $300 million bang for the buck," he said.
--
Sherman Cahal
http://www.americanbyways.com
http://www.abandonedonline.net
http://www.bridgestunnels.com
http://www.urbanup.net
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