DelDOT expects to run out of new project money for the majority of state roads next year, with shortfalls approaching $1 billion in five years without new sources of money, officials said Thursday.
The grim forecast, including a potential $21 million budget gap for the spending year that begins July 1, surfaced as a legislative panel was delivering a report and long-range financing options for the state's Transportation Trust Fund.
Task force members said the shortfall could balloon to $980.5 million in five years despite the shelving of 46 capital projects over the last three years and delays in several others. The group outlined the problem in a 74-page report to legislators and Gov. Jack Markell that included dozens of potentially unpopular options for closing the gap.
Alternatives include a $1 increase in commercial tolls on Del. 1, raising gastaxes. closing down free exits from Del. 1 south of the Roth Bridge, boosting transit fares, shifting DelDOT operating costs back to the general fund and increasing state borrowing.
J. Brett Taylor, DelDOT policy and communications director, said the Transportation Trust Fund Task Force avoided endorsing specific budget-balancing tactics.
"The report really discusses the capital planning process, what we are up against in terms of infrastructure needs and how these options would help," Taylor said.
Barring new revenues or other changes, money will run out next year for all new road and transit projects that are financed entirely by the state, with the picture continuing to worsen and all new capital projects of any type sidetracked by 2017.
Lawmakers voted to form the task force last year amid rising concern over continuing cuts in DelDOT's capital budget and long-term doubts about the state's ability to pay for future projects or even meet current road and bridge maintenance goals.
The agency would need to raise $980.5 million to fully cover currently planned and authorized projects and programs or forgo much of its transportation plan through 2016. By 2023, that gap would rise to $3.7 billion, some 30 percent short of the state's need.
Ted C. Williams, who chaired the 24-member task force, said the group wanted to provide options to meet the needs of the traveling public and also assure that Delaware has the transportation system it needs to attract new businesses and jobs.
"It gives the General Assembly and the governor's office tools to allow them to make the appropriate decision," Williams said.
Catherine L. Rossi, Markell's communications director, said that the report "highlights some very real fiscal challenges."
"Among the first order of business for a new transportation secretary will be evaluating transportation needs, priorities and fiscal realities," Rossi said, referring to a successor for former DelDOT Secretary Carolann Wicks, who resigned last month. "This report lays out some of those realities and some options for consideration."
Rep. Daniel B. Short, R-Seaford, said lawmakers will likely have little interest in raising taxes or fees this year, despite the warnings.
"With these economic times, I really wouldn't be much in favor of implementing any substantial fee or tax increase," Short said. "People are still struggling, and that's not going to help the recovery. If we have to put it off and we can do the big things we need, I don't know why we would put new burdens on taxpayers."
Jim Lardear, public and government affairs director for AAA Mid-Atlantic, described the report as "sobering" and immediate, and said that "kicking the can down the road is no longer an option."
"There is no 'free money' to fill our state's infrastructure needs. The task force's list of options shows that difficult political choices are required. However, Delawareans want accountability and results," Lardear said. "Now more than ever, they need to clearly see how increased financial investment in DelDOT is translated into real benefit across our communities."
Paul Morrill, a task force member and executive director of the Committee of 100 business group, said the size of the problem was unexpected.
"This is not a long-term, but an immediate one," Morrill said. "The task force report makes it clear that doing nothing is not an option."
Officials blamed rising traffic volumes, use of the state's trust fund for DelDOT costs previously covered by general funds and declining revenues among the reason for the gathering crisis.
Already-postponed projects include improvements to Del. 9 in the New Castle area and portions of U.S. 30 and Del. 2, along with proposed overpasses along Del. 1 in Kent County and Del. 26 in Sussex County.
DelDOT and task force members plan to brief lawmakers on their findings next week.
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