By now most people have heard that transportation funding in Missouri is about to fall off a cliff. But Missouri is not alone in the crisis. Transportation funding is a problem in many states across the country, with no simple solution.

“With rising construction and fuel costs, and people driving less, it is important that not only Missouri, but the entire country work right now to solve the transportation funding shortfalls,” MoDOT Director Pete Rahn said.

Rising construction costs, paying back Amendment 3 bonds and a slash in the construction budget are the three main reasons for concern. In 2008 MoDOT’s construction program totaled $1.23 billion. By 2010 it will be cut by more than half, plummeting to $570 million. Because of the impending financial situation, MoDOT staff completed a survey to determine what other state DOTs are doing to determine their budget shortfall.

In their report, staff determined that state transportation revenues are not keeping pace with escalating construction costs and mounting needs, and that all states face a revenue shortfall between revenue expected from existing sources and projected needs to both maintain existing infrastructure and build new projects. During the 2007-08 legislative session, several states were able to pass different types of legislation they believe will be able to help their transportation shortfall.

Arizona passed legislation that would allow their DOT to privatize all rest areas. In Indiana, legislation was passed that raised the retail sales tax on gas from 6 to 7 percent. Virginia currently has a pending bill that would eliminate a 17.5-cent tax on all motor fuels and would replace it with a 5 percent sales tax on all gasoline sales.

Despite the impending funding crisis, MoDOT continues to deliver projects on time with new solutions such as practical design, contractor innovations, and managing administrative costs.

“MoDOT will continue to provide the best services possible despite the looming funding crisis,” Rahn said.