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MDOT Will Never Have Enough Money

 

After having gotten all of the federal funds mentioned previously; having had the Vision 21 bill passed in March 2002, which said that the 1987 Four-Lane Program would be finished in approximately four years which would free up the taxes going into that program for other uses, including roads in Harrison County and others; and the extension of the expiration date of the Gaming Road Tax extended to 2024, the following information came out of MDOT:

 

A SUN HERALD article dated 5/5/04, titled “Budget worries MDOT director,” revealed that Butch Brown had reason to be concerned as follows:

 

Last year, the Legislature took $50 million from MDOT’s budget to fund other programs.  Some   Senate leaders have already approached Brown and his staff about taking an additional $44 million of MDOT’s current budget to shore up a shortfall in this year’s budget.

 

Vision 21, a priority list of road projects in the state, is supposed to ramp up in 2006.  MDOT scheduled to spend $200 million on construction for roads in that plan.  If money isn’t restored to MDOT’s budget, many of those projects will go unfunded, including the Gulfport Connector road.

 

The Biloxi connector road, which has been a flashpoint in a rocky relationship between MDOT and Coast leaders, is not included in any of the state’s road plans. (Remember this statement for the following articles)

 

But it is obvious that the need in East Biloxi is great, Brown said.  “There are nine lanes in and nine lanes out of the Biloxi peninsula.  All of those roads are at capacity.  (Remember, this is before Katrina knocked out two main bridges.)

 

A SUN HERALD news article dated 5/21/04, titled, “Biloxi connector road loses funding source,” reveals the following:

 

Prospects are dimmer for a new highway in Biloxi to link U.S. 90 and Interstate 10 because the Legislature took road money to pay for teacher pay raises and cover other budget shortfalls, Transportation Commissioner Wayne Brown said Thursday.

 

Last year, the Legislature took $50 million in MDOT funds.  This year, the Legislature, with the approval of Gov. Haley Barbour, took about $130 million.  MDOT’s share of casino revenues…was reallocated to the state general fund.

 

One of the things I had been pushing hard to do is use that to bond the Biloxi connector…I don’t know of a better place that money can be invested,” (Wayne) Brown said.

 

MDOT also did not actively support federal funding for another Biloxi project. The city asked for Brown’s support in obtaining federal funding for a new Popp’s Road Bridge as a stop-measure to improve traffic flow until a new connector highway can be built.

 

MDOT has found yet another way to feed the MDOT money machine.

 

 Revenue Bonds Issued by Counties Helps Fuel MDOT Money Machine

 

A SUN HERALD news article dated 1/25/05, titled, “Gulfport to get four-lane highway,” reveals the following:

 

Harrison County supervisors will borrow up to $300 million to provide for construction of a new four-lane highway in Gulfport.

 

Under an agreement announced Monday, the Mississippi Department of Transportation will repay county revenue bonds with an 80 percent match from the federal government and 20 percent from the state.

 

MDOT can take advantage of federal funding by building the road to interstate standards, cutting construction time from 16 to six years, said Wayne Brown…

 

Money for construction will be borrowed in installments.  The first installment of up to $70 million will be used for design work and to acquire rights of way.

 

Supervisor Larry Benefield, who worked with MDOT on the plan, said, This is truly, truly great for this county.”

 

A SUN HERALD editorial dated 1/26/05, titled, “New highway plans sound, well, too good to be true,” reveals the following:

 

The highway project announced this week in Gulfport almost has to be too good to be true…

 

Can a similar approach be taken to construct a new north-south roadway between I-10 and the beach in Biloxi:  Or was this a once in a generation opportunity and Gulfport just got lucky?

 

A SUN HERALD article dated 1/26/05, Biloxi may get a new highway, too,” bylined, “Cost could equal Gulfport’s $300 M north-south rout,” reveals the following:

 

The Mississippi Department of Transportation plans to request proposals to begin design work for a north-south connector in Biloxi.

 

MDOT already is moving ahead with plans to build a north-south connector in Gulfport to interstate standards.  Harrison County has agreed to borrow up to $300 million in increments for the project.  MDOT will repay the debt with 80 percent federal and 20 percent state funds.

 

Butch Brown…and Wayne Brown said Tuesday they are determined to find funding for the Biloxi connector, too.  It is also estimated to cost roughly $300 million.

 

That’s news to me, but it’s good news,” Biloxi Mayor A.J. Holloway Said….With the growth we have and the growth we’re getting, we’re really in a bind.”

 

A SUN HERALD news article dated 6/29/05, titled, “Connector gets boost from county bond issue,” reveals:

 

The Board of Supervisors has voted to move forward with a $160 million bond issue, which they had agreed to do in January….The state agency (MDOT), which does not have borrowing authority, will cover the cost of the revenue bonds.

 

“We’re in the first $160 million of a $300 million project that will carry us through the first phase, “said Supervisor Larry Benefield.  “About $68 million will be for right of way acquisition and engineering.”

 

Benefield said the bond issue would be repaid at “absolutely no coast to the local taxpayer…We’re just the vehicle for the state MDOT,” he said.  “It’s a new way of financing for highway construction.”

 

The above mentioned SUN HERALD editorial dated 1/26/05, titled, “New highway plans sound, well, too good to be true,” is apparently, in reference to the old adage that just about everyone has heard; “If it’s too good to be true, it probably isn’t.  MDOT Commissioner, Dick Hall spoke about the use of bond funds issued, by local governments for highway work, in which it appears that the MDOT money machine is fueled by multiple sources.

 

MDOT May Already Have Encumbered Future Federal, State Funds

 

A SUN HERALD article dated 8/20/05, titled, “Road chief worried about new highway funding technique,” bylined, “Debt will fall on state, he believes,” revealed the following:

 

Transportation Commissioner Dick Hall says he’s concerned about an apparent move to let local governments repair or build highways by issuing bonds that ultimately will have to be repaid by the state.

 

Hall, who represents the central district, said the commission agreed to test the funding technique with a single project involving Tunica County.

 

“Before the ink was dry, we were facing commitments of up to $600 million in new long-term debt—just since January,” Hall said.  “Frankly, this is nothing but a way to bypass the Legislature.”

 

The funding technique is being used despite the absence of enabling legislation and there’s no oversight by the state Bond Commission, he said.”

 

We’ve got to pay that back out of your future fuel taxes (1987 Four-Lane Program) and the state funding,” Hall said.  This doesn’t only obligate state funding; it also obligates hundreds of millions of dollars in future federal funds.  It’s a concern to me as a fiscal conservative.  We’re seeing no sign of slowing down.”

 

Rep. Greg Snowden, R-Meridian said he agrees with Hall.  “This is allowing local government to proceed on the state’s nickel,” Snowden said.  “We’ll have to put the brakes on it.”

 

The above words of Dick Hall place all of the promises of Wayne Brown and Butch Brown that they are going to do Coast roads in an entirely different light.  They have repeatedly promised that the Coast roads and others will be done after the Vision 21 program is complete, freeing up the state gasoline taxes, and the obtaining of future federal funds for these roads. Now, it looks like those funds may well have already been encumbered.  One should reflect on all of the previous promises as set forth in the previous news articles as well as the promises in the succeeding articles.

 

A SUN HERALD article dated 6/29/05, titled, “New road upheaval feared,” reveals the following in regard to the Biloxi Connector:

 

Butch Brown…what’s left to do is the engineering of the road, the buying of the right of way and construction, which could begin 2010.

 

He said the 6-mile road has a $300 million price tag and 80 percent of the money will come from the federal government.

 

Brown said the probable six-lane road is back on the “front burner.”  Brown said, “What I can tell you is we are in the mode to build the East Harrison Connector, and we can fund it without any new taxes.”

 

A SUN HERALD news article dated 8/10/05, titled, “Connector’s path not yet determined,” bylined, “Neighbors question MDOT,” revealed the following about the Biloxi Connector:

 

An anxious overflow crowd packed the lecture hall of Biloxi High School Tuesday night to hear Transportation Commissioner Wayne Brown answer questions about a road that would run through the North Bay area.

 

Brown told the crowd the road’s exact path has not been determined and will not be set until the engineering is done sometime within the next three years, and then the Mississippi Department of Transportation will make the determination on which properties and businesses will be bought.

 

A WLOX TV news article dated 8/10/05, titled, “Biloxi Residents Speak Out Against North-South Corridor revealed the following:

 

Hundreds of South Mississippians met Tuesday night to discuss plans for a controversial North-South connector.

 

Wayne Brown tried to address residents’ questions and concerns.  Many left the meeting feeling little was accomplished.

 

“The poor gentleman couldn’t answer the questions because those are political policy questions.  And what’s happened here is our political structure isn’t addressing the needs of the people.  What people are wanting to know here is how do we stop this?” Dr Greg Garcia asked.

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