1000 Friends of Wisconsin

Fix-it-First Myths and Facts
Myth #3

Myth #3: The Major Highway Projects program is a relatively small segment of the state transportation budget.

Fact #3: According to the Department of Transportation’s Transportation Budget Trends, in 2003 the state spent $241.62 million in bond funds, state funds and federal funds on the Major Highway Projects program. This $241.62 million represents 21.1% of the $1147.55 million state highway budget and 10.2% of the $2363.68 state transportation budget.*

The Wisconsin Department of Transportation also includes the debt service on the revenue bonds used to pay off past Major Highway Projects as an expenditure in Transportation Budget Trends (2002). This debt service accounted for $117.43 million, or 5.0% of the overall state budget.

Regardless of whether one combines debt service with federal, state and bond funds as expenditures (as WisDOT does), or simply addresses the spending on Major Highway Projects as the federal, state and bond funds, the spending on capacity expansion is a significant portion of the state transportation and state highway budgets - 15% or 10%, respectively.

The state transportation budget covers all modes of transportation, aids to local governments, state patrol and more. Spending 10% of this budget just for highway expansion is simply too much. Spending more than 20% of the state highway budget on capacity expansion is unsustainable and irresponsible.

These levels of spending on capacity expansion are particularly troubling given the findings of the recent Legislative Audit Bureau report. On just seven recent Major Highway Projects there were cost overruns of $381 million. When a program experiences such egregious budgeting problems, it should not continue to receive 10% of the overall state transportation budget and more than 20% of the state highway budget. This is particularly true when 40% of existing roads are not in good condition, when rural and urban transit services are under-funded all around the state, and when local governments do not receive enough aid to maintain and repair their road networks.