The Committee of 100 | FYI Archives

In the Delaware Department of Transportation presentation before the General Assembly's Bond Bill Committee, Secretary Nathan Hayward and his senior staff painted a stark picture. They outlined the extensive existing infrastructure requiring maintenance and the substantial number of new projects needed to address transportation issues in the State, then juxtaposed the limited funding available from the Transportation Trust Fund (TTF), which is insufficient for either. After reviewing the limited funding options from sources currently within the TTF, Nathan outlined a bold plan to make money from private investors by leasing Route 1.

Delaware currently has 386 limited-access highway lane miles which costs $5 million per lane mile to construct; 2,024 arterial road lane miles at $4 million per lane mile; 1,928 collector- road lane miles at $2 million; and 8,244 local and suburban roads at up to $1.6 million per lane mile to construct. DelDOT maintains 1,378 bridges, 1.1 million square feet of facilities, 2,400 trucks and maintenance equipment, 211 busses, and 193 paratransit vehicles for a total asset value of $16.5 billion. With a life-span estimate of 25 years for roadways, 50 years for bridges, 10 for equipment, and 30 for facilities, DelDOT estimates that we should be spending over $600 million to cover our assets. We, of course, are not.

Even more costly are the construction projects. In New Castle County they range from $7.5 million for the Claymont improvement plan to $250 for the I-95 improvements, which include lane widening, the I-95//Route1 interchange, and the Newark toll plaza improvements that will provide fast EZ Pass lanes. The longer projects are delayed, the more expensive they become, especially for right-of-way (ROW) acquisition. The $450 million US 301 project includes $120 million for ROW.

Kent and Sussex Counties have expensive projects in the works, as well. The West Dover Connector has an estimated cost of $36-$45 million and Rehoboth area improvements total $78 million, including $52 for purchase of necessary real estate. The big one is the Indian River Inlet Bridge, with an estimated cost of $229 million.

When it comes to finding additional funding, there are some hard realities. Between 1996 and 2005 the State's General Fund grew 72%, but the TTF increased only 37%. If the TTF had grown at the General Fund rate, there would be an additional $131 million in 2005 TTF Revenue. But there is not. Between 2000 and 2005, DelDOT costs for equipment operators increased 12%, cement finisher 28%, laborer 33%, concrete 15%, hot mix 28%, fuel 46%, steel 100%, raw land 16% and commercial land 25%.

DelDOT's FY 2005 total resources were $741.5 million; resources net of debt service were $642.4 million. Minus operations and DTC, resources available to capital investment totaled $446.3 million. Unless there is an infusion, in FY 2006 that number will be $269.9 million. It will continue to decrease in 2007, 2008, and 2009.

What are the choices? The Route 1 scheme can't provide income for FY 2006 so we must consider other options now. Some have called for changing the pay/go from 50/50. But the pay/go percentage is already down to 29.1% for FY 2005 and the DelDOT Financial Plan FY 2005-2011 already requires further spending cuts to return it to the required 50/50 6-year average. In addition, adjusting to a 60/40 pay/go will only produce an additional $11 million per year. There are several other options from income streams currently in the TTF. Increasing the gas tax by $.05 (from $.23 to .28) would raise approximately $25 million; raising the Department of Motor Vehicle (DMV) Documentation Fees by 2% (from 2.75 to 4.75%) would raise $48; increasing the DMV Registration Fees from $20 to $40 (still among the nation's lowest) would raise $22 million; increasing the tolls by 30% on I-95 would raise $20 million and on Route $10 million; raising DART Fees by 30% would raise $5 million.

Some of these are nonstarters. Even though riders are charged only $2 for paratransit trips which costs an average of $27.69, these fees will not be increased. Sussex County currently picks up $1 of that $2 fee for paratransit riders. Delaware ridership rules, which were set by the General Assembly, are the most generous in the nation and are not going to change. There is also no political will to increase gas tax, though non-election years, like this one, provide the only chance. Ghosts from the past have prevented the General Assembly from increasing our lowest-in-the-nation registration fee (which, unlike many states, includes the cost of inspection). The last time this fee was increased, Democrats stood at inspection lines with signs telling drivers that their increased registration fee was courtesy of the Republicans and the House went from R to D. It doesn't matter that is was in 1964. The registration fee ghost still haunts the General Assembly.

That leaves tolls and, possibly, doc fees which, together, could raise $78 million. Without doc fees (strongly opposed by the dealerships), it's only $30 million. Either way, it will take either an infusion from the FY 2005 surplus and/or a new income stream into the TTF. There is a rationale for both. First, the General Assembly has added surplus funds to the TTF multiple times, so there is clear precedent. Second, a new income stream, such as a portion of the Escheat income could correct the earlier "raid" of the TTF. When the TTF was established, its dollars were for construction and maintenance only. However, when Delaware hit financial hard times during the Castle Administration, the "temporary" fix was transferring DelDOT operations from the General Fund into the TTF. Temporary became permanent. Next, DMV was moved from Public Safety to DelDOT and, as a consequence, into the TTF. But no new permanent sources of revenue accompanied those transfers. Providing new income would correct that hit on the TTF.

If no additional funding is provided by the General Assembly, there is a lengthy list of projects slated to have FY 2006 funding cuts. Most significant is the loss of all $33.6 million for the construction of the I-95/US 202 Interchange. After the I-95/Route 1 interchange, the I-95/US 202 interchangeBespecially the North-bound I-95 exit ramp to North-bound US 202Bis currently the worst in Northern New Castle County. It impedes both exiting from the City of Wilmington and access to businesses and homes the length of Concord Pike as well as around Route 141 to the DuPont Experimental Station. Other slated cuts include the Wilmington Riverfront, which would lose $8 million of its $13.6 million funding; the Churchman's Crossing Corridor Improvements, which would lose $5.45 million of its $6.45; I-95 improvements from the Maryland State Line to SR 141, which would lose $1 million. In all, New Castle County would lose nearly $100 million from projects originally expected to be funded in FY 2006.

Even more significant is the long list of projects waiting for funding in 2007, 2008, 2009 and beyond. If the base income in the TTF is not increased, not only will FY 2006 projects be moved back into those years, but also, the inadequate annual funding will compound the delay for those projects in subsequent years. Equally important, we must ensure that we have sufficient State funding to match federal dollars so that none are lost.