Greeting from the Idaho Statehouse

Legislative Update

Week 2 - January 20, 2009

Greetings from the Idaho Statehouse:

The Office of Performance Evaluations via the Joint Legislative Oversight Committee released the long awaited Idaho Transportation Performance Audit on Monday. The consultants said our highway program situation is "untenable". They indicated that the Idaho Department of Transportation, ITD, funding is not enough to catch up and match the expected costs of maintaining and preserving state highways and bridges; our highways are deteriorating faster than resources are available and the costs to do road construction are rising faster than inflation; they said that $137 million dollars is merited and probably understated; they criticized the department because they believe ITD's programs are reactive in nature; that the department doesn't have a strategic vision and that there is no coordinated long term/infrastructure management plan. The consultants made three points: 1. Funding is not sufficient , 2. The department doesn't have the tools to do the job and 3. As the tools are enhanced in the department, most of the work will be done in house. The department's first priority should be maintenance, preservation and restoration. New projects should not be allowed to take away funding for these priorities.

The consultants also expressed concern about 38% of the fuel tax funding which goes to the "locals", the over 200 highway districts, cities and counties across the state. They recommended more transparency be made available and oversight and accountability.

The ITD Chair responded that the department had developed a pavement, maintenance and preservation management system, but it had been closed down.

If the performance audit recommendations are implemented, the consultants indicated that $19.6 million dollars would be saved on a one time basis; that $11 million could be saved in five years. A $6.6 million dollar management system would be instrumental in increasing the manangement system. The ITD could save $5 million in improved

productivity in two years. Down the road they predicted that the implementation of their recommendations could save the state hundreds of millions of dollars.

The Governor and staff have indicated that the state has $240 million in needs. His proposal includes a 2 cent increase in fuel tax over five years which will generate $88 million in five years. He wants to increase registrations from $15 million to $51 million and to raise an excise tax on rental cars at 6 cents. This will generate $174 million dollars in 5 years.

The two big issues that we will deal with in this legislative session are the budget and the transportation situation. I look forward to your comments. wjaquet@house.idaho.gov 208/332-1211.