Amid sales tax increase debate, state transportation director lays out dire prediction for future funding

JEFFERSON CITY, Mo. – Missouri Department of Transportation Director Dave Nichols said Thursday funding to maintain the state’s roads and bridges is on track to be inadequate in less than three years.

Speaking at the Missouri Chamber of Commerce’s annual conference on transportation in Missouri, Nichols said that by 2017, funding to maintain current road conditions could fall well bellow the necessary $485 million threshold.

Currently, 70 percent of the department’s funds for roads come from state and federal gas and diesel tax receipts. But with fuel efficiency on the amount of people driving on the fall, those numbers are projected to go down. Currently, the department is funded more than $200 million above the $485 million threshold. But that number is projected to fall to $325 million.

“That’s not even enough money to do the preservation work,” Nichols said.

The Missouri Highways and Transportation Commission announced they would not place any new projects in its five-year construction pipeline and said theta they were suspending its cost-share program with localities.

“Given the financial forecast we’re presented with, we have no choice but to stop adding projects,” said Joe Carmichael, chairman of the commission.

Nichols, during his remarks, highlighted the fact that MODOT has already experienced significant downsizing in an attempt to counter arguments of critics who contend that the department is too big. The department has reduced its staff by 1,200 and closed three district offices.

Their bleak outlook comes as the Missouri Chamber and others are beginning to revamp their push to get a 1-cent sales tax increase to fund transportation projects on the ballot. Dan Mehan, president of the Chamber, said his organization would back any avenue – whether it be through the legislature or through the initiative petition process – to secure new funding.

A proposal to place a 1-cent sales tax increase on the ballot has already been filed with the Missouri Secretary of State’s office.

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