Tom Warne Report, 22 March 2013
MADISON – Gov. Scott Walker’s proposed budget includes borrowing over $1 billion over two years, the majority of which would go toward road projects, the Legislature’s budget office reported Thursday. The state’s lagging transportation fund would get $994 million from that money, to help with the growing demand in the state for major projects not able to be funded with shrinking traditional funding sources.
The bonds in the budget to go toward transportation include $404 million for major highways, $302 million for the Zoo Interchange, $200 million for Hoan Bridge and $60 million for rail.
The governor and the Republicans in control of the Legislature want to avoid raising taxes or fees.
Walker’s transportation secretary, Mark Gottlieb, said in a recent interview that lawmakers who are skeptical of the amount of borrowing have two alternatives: find new revenue or make cuts to the transportation program.
“We really don’t believe the Hoan Bridge is delayable. It has to happen,” Gottlieb said. He said that low interest rates make it feasible to borrow for projects like the Zoo Interchange and Hoan Bridge because their long life span lets the state spread “out costs to future users.” He said the state does not bond projects with shorter life spans.
Walker’s proposal also includes using money from other funds to supplement transportation, including $94.4 million from the state’s main account. That funding comes from sales and income taxes and goes toward schools, healthcare for the poor and other major programs.