AASHTO Journal, 29 January 2016
Kentucky Gov. Matt Bevin proposed lower spending levels for transportation projects, partly because of shrinking fuel tax receipts, and recommended a budget that would leave the Kentucky Transportation Cabinet nearly $1 billion less in funding over six years.
Bevin proposed a $6 billion plan for highway projects over six years, which includes about $5 billion in federal funds.
Budget documents show that in the first half of the state’s fiscal 2106 that ends June 30, fuel tax receipts – the single largest source of Road Fund revenue – fell 17.4 percent to $382 million from $462 million in first-half fiscal 2015. The overall Road Fund shrank 5.4 percent in that period to $742 million.
“Due in part to declining gas prices, less money from a reduction in Road Fund receipts will be available to lawmakers to spend on projects,” said the KYTC’s announcement of the governor’s highway plan.
The KYTC also said that “Bevin noted that for some time now, our bridges have been ignored, and that the issue must be addressed.” In his recommended projects plan, the governor calls for “no less than 15 percent of available state highway dollars to be allocated to the preservation and maintenance of these structures.”
In a Jan. 26 cover letter to that plan, KYTC chief executive Michael Hancock wrote: “Governor Bevin has inherited a highway plan that contains many more projects than the $6 billion in traditional revenues will cover. Accordingly, the Transportation Cabinet will manage projects and programs to the budget we have available while we work over the months ahead to make future highway plans more realistic and reasonable.”
Hancock also noted that in keeping with the governor’s instruction of bridge projects, “in addition to traditional bridge replacement project funding levels we have added to this highway plan funds for a new preventative maintenance program for our bridges as well as additional dollars for bridge repair and rehabilitation.”