Wisconsin DOT Seeks $200M in State Bonds for Current Year to Ease Project Delays

AASHTO Journal, 23 October 2015

The Wisconsin Department of Transportation has asked the state Legislature’s Joint Finance Committee to release $200 million in general obligation bonding authority during this current fiscal year so it can curb delays on some major highway projects now facing two-year construction slowdowns.

That is part of $350 million in contingent bonding power lawmakers approved earlier this year in the two-year budget law that took effect in July. It required the DOT to request the funds when it would need them, with $200 million potentially available for the current fiscal year and the remaining $150 million for the next fiscal year.

Gov. Scott Walker initially requested $1.3 billion in new transportation bonds, but the Legislature approved $500 worth plus allowing for the contingent $350 million.

Last month, his administration said the state had delayed several major projects around the state for two years because it did not have enough money under that budget to finish them on time. At that time the DOT had not asked for the additional bonding.

On Oct. 19, Transportation Secretary Mark Gottlieb submitted the request to the Joint Finance Committee.

Now, Walker said, if the committee does not approve the requested contingent bond funding the projects that would be delayed by two years included the US 10/WIS 441 project that is currently under construction.

Even with those funds, six major projects would still be slowed from original projections, but WisDOT reportedly told lawmakers the extra bonding would reduce those project delays to just one year.

“Wisconsin’s thriving industries and businesses depend upon a reliable and efficient transportation system for them to conduct their business,” Walker said. “This contingent bonding will reduce delays for major highway projects, which is important for the economic welfare of the state. More importantly, however, it is vital to ensure the safety of Wisconsin’s motorists.”

For instance, the “WIS 441 Tri-County Project” at Menasha will rebuild and expand US 10/WIS 441 from four to six lanes in an area where crash rates exceed statewide averages, and the state says the added lanes “are needed to safely handle expected traffic increases in the future.”

Right now, the $482 million project is scheduled for completion by December 2021, two years later than previously planned due to funding reductions. Walker’s office said the contingent bonding request could cut that delay to one year, allowing the project to be finished in 2020.

If the panel approves the request, WisDOT would apply $125 million to the Major Highway Development Program and projects it supports.

The remaining bonding would provide $75 million to fund the State Highway Rehabilitation Program, which would restore 222 miles of projects that were earlier removed from a six-year program. The money would also allow the department to advance 250 miles of project improvements over 10 years.

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