Construction Equipment Guide
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Sat August 25, 2001 - Midwest Edition
The Missouri Highways and Transportation Commission recently has approved a $6-billion, five-year transportation program. The Missouri Department of Transportation’s (MoDOT) Statewide Transportation Improvement Program (STIP) lists transportation improvements planned by state and regional planning agencies for fiscal years 2002 through 2006.
The STIP includes funding for highways and bridges, aviation, railroads, waterways and public transportation. The largest funding amount, almost $4.7 billion, is allocated to the state’s highway and bridge construction schedule.
“Missouri’s highways need more attention than ever due to increased traffic and aging roads and bridges. This five-year program addresses many of our highest priority needs, but limited funds prevent us from doing more,” MoDOT Director Henry Hungerbeeler said.
More than 1,000 highway and bridge projects are included in the 2002-2006 STIP. They range from preliminary engineering and right-of-way acquisition to construction projects. All parts of the state will see some improvements based on projects in the 2002-2006 STIP.
This STIP includes projects financed by bonds for fiscal year 2002, projects tentatively proposed to be financed by bonds in FY 2003, and reduced funding because of debt repayment, which must be repaid out of future construction budgets. While bond financing allowed MoDOT to accelerate some much-needed projects, repayment will cost approximately $90 million a year starting in 2004 and continuing for the next 20 years. This repayment amount assumes the sale of approximately $1.1 billion in bonds in fiscal years 2001-2003.
In addition, STIP funding is less because of lower state revenue. Because state revenue grew at a much lower rate than projected last year, $277 million less is forecast to be available for construction during the period covered by the STIP.
Because of the bond projects already planned for 2002-2003, MoDOT will be able to keep the commitments made in last year’s STIP. After 2003, however, funds available for the construction schedule drop dramatically from a high of $1.4 billion, which includes land purchases, and engineering costs, in 2002 to an average of $655 million in 2004-2006.
This STIP also reflects MoDOT’s change in philosophy to dedicate more funds to rehabilitation and reconstruction of Missouri’s existing 32,000-mi. state highway system — a $60-billion asset.
“The number of improvement projects will be reduced substantially beginning in 2004,” Hungerbeeler said, “because the boost from bond financing is scheduled to end, and there will be a lot of bond debt from previous years to pay off. To get the best value for these limited dollars, most of the work in this STIP will focus on taking care of the existing road and bridge system rather than building new highways.”
This means less money will be dedicated to building new highways. In 2002-2003, for example, system expansion accounts for 57 percent of funding and rehabilitation and reconstruction for 31 percent. From 2004-2006, 34 percent of the funds are dedicated to system expansion and 55 percent to rehabilitation and reconstruction. Other funds are allocated for safety improvements, economic development projects and unforeseen emergencies.
For more information, call 888/275-6636 or visit www.modot.state.mo.us.