JFC rejects DOT deficit proposal
The Joint Finance Committee unanimously rejected a proposal by the DOT to eliminate a $33.2 million fund deficit for 2008-09.
The DOT's plan included reducing the 2008-09 major highway development appropriation by $15 million in segregated funds and the 2008-09 highway rehabilitation appropriation by $18.3 million in segregated funds. The hole in the fund's budget is largely due to lower than expected collections for car and light truck registration fees and fuel taxes.
Rep. Mark Pocan, the Madison Dem who co-chairs the committee, said he wanted to wait until the full impact of federal stimulus funding on the state's transportation spending is known before approving a plan to cut back on projects.
So far, of the $400 million in Recovery Act money sent to Wisconsin, $22 million in savings has been seen as bids have been coming in below projections, Pocan said.
"It just didn't make sense to stop any jobs right now," he said. "Rather than cutting back now, we'll see what the future will bring us."
If the fund develops a deficit of greater than $30 million in the current biennium, the DOT will have to propose another plan, the Legislative Fiscal Bureau said.
-- By Greg Bump



