The Register Citizen (Torrington, CT)
DOT briefs officials on $4.3B in project cuts
Northwest Hills Council of Government officials sound off
“The reality of the funding, without a budget fix this fiscal year for next fiscal year and beyond, is the DOT has to go forward with these cuts. I don’t want to do this. You don’t want to do this . ... We’ll be devastated, and we’ll never recover.” Department of Transportation Commissioner James P. Redeker
GOSHEN — State Department of Transportation Commissioner James P. Redeker briefed local elected officials on the decision to halt funding for $4.3 billion worth of state infrastructure projects in the coming years Thursday morning at a meeting of the Northwest Hills Council of Governments.
Redeker said the move is the result of a projected deficit in the state Special Transportation Fund — a known issue that has gone unaddressed. The fund is expected to be $20 million in the red by the 2019 fiscal year, then continue on to a $62.9 million deficit by 2022. The DOT and other transportation agencies are expected to run a $68 million shortfall in the 2019 fiscal year, and $340 million by 2022, Redeker said.
With this deficit in the forecast, bonds cannot be sold to to pay for DOT expenses — which total approximately $1 billion — unless its budget is balanced.
Thus, the planned move announced Wednesday by Gov. Dannel P. Malloy would take effect in the 2019 fiscal year and stop funding for $4.3 billion in infrastructure projects planned over the next five years.
Among other steps, Redeker said the DOT has laid off 15 percent of its staff to address the potential deficit. Planned measures include funding cuts for bridge paving and maintenance, and increasing bus and rail fares while reducing service.
Half of town aid road funding will also be cut in both the 2018 and 2019 fiscal year, Redeker said.
“The reality of the funding, without a budget fix this fiscal year for next fiscal year and beyond, is the DOT has to go forward with these cuts. I don’t want to do this. You don’t want to do this. I am desperately hoping for a
solution,” said Redeker. “... We’ll be devastated, and we’ll never recover.”
The forecasted insolvency of the Special Transportation Fund is the result of multiple factors, Redeker said.
In 1997, the state legislature cut the gas tax from 39 cents to 27, where it has remained since. The cost of debt service has increased, the price of fuel has decreased, and money was diverted out of the fund to pay for other projects — which caused some, but not all, of the issue, Redeker said.
A move by the legislature to set aside a portion of sales-tax revenue delayed, but did not sufficiently address, the problem — revenues fell short of what was expected.
Under current thinking, only federally-funded projects — which feature an 80/20 split of expenses — and those concerning critical safety issues will go forward, Redeker said.
Ongoing construction projects will continue, and local projects that have already been approved for this fiscal year will hopefully be funded, he said.
The series of spending cuts to balance the budget in the near-term do not fix this structural problem, Redeker said — they only allow for bonds to be sold.
He advocated that new revenue be brought in to bolster the Special Transportation Fund.
“From my perspective, this is the same as Mianus River Bridge collapsing. It is, for transportation,” said Redeker. “We’ve got to fix it, and frankly, I’m hoping for the longer-term, legacy fix, so we don’t come back again, we don’t just bandaid this thing.”
A four-cent increase in the gas tank would address the 2019 fiscal year deficit, he said. Harwinton First Selectman Michael Criss and Cornwall First Selectman Gordon Ridgeway voiced concerns that new revenue would be used for other purposes.
A portion of the sales tax on new vehicle purchases will be shifted to the Special Transportation Fund beginning in 2021, which will help with in the issue in the longterm, Redeker said.
Redeker suggested the chief elected officials in attendance reach out to state legislators and lobby for a solution to the problem.
Barkhamsted First Selectman Don Stein said he planned to speak with state Sen. Kevin Witkos, R-Canton, about Redeker’s presentation later in the day.
“We’ve got to do something serious about this very quickly because we can’t have bridges collapsing, you can’t have roads caving in, and we can’t fix that problem at the town level if we don’t get funds and you can’t fix it at the state level,” said Stein.
Litchfield First Selectman Leo Paul suggested that the announcement had been poised for maximum effect on the public. He recommended that cuts be levied across the state government instead of just at the DOT.
“Maybe the governor and OPM, Ben Barnes, ought to take a look at, rather than devastating DOT, spreading the harm across the different agencies,” said Paul. “I hope you don’t take this the wrong way, but frankly I think the governor is trying to figure out what’s going to get him the most print — and transportation is the one.”
The reallocation of other bond funds to partially address the issue is under consideration, Redeker said. He said he did not believe the announcement was aimed at the most significant public impact.
Redeker also brought up tolls as a potential source of revenue — a long-running debate in the state.
State Rep. Jay Case, R-Winchester, pointed out that tolls would take approximately five years to implement, and would have to be done throughout the state, as opposed to just at its borders, and require a $5 million expenditure from the state.
Redeker said federal revenue process for tolls would amount for approximately two years’ worth of this process and the $5 million would largely go to a federally-mandated environmental study.
He said he went to Washington to lobby against that need, with the knowledge of President Donald Trump’s espoused stance against unneeded regulation. Federal Highway Association officials had not been receptive, he said.
Winsted Town Manager Robert Geiger and Torrington Mayor Elinor Carbone said the results of the potental funding cut on their communities had not been determined.
Geiger said the Holabird Bridge replacement project would continue, but he considered a recent grant allowing for the reconstruction of Whiting Avenue and funding for the extension of the Sue Grossman Greenway to be in jeopardy.
Carbone said she had directed Public Works Director Jerry Rollett to put together a list of potentially affected projects in the city.