November 15, 2007      12:31 PM

Printable Version Of This Item

TxDOT PROPOSES MASSIVE CUTS IN AGENCY BUDGET

Leaner agency anticipates federal cuts of at least $3.6 billion by 2015.

The Texas Department of Transportation, with a grim federal funding picture and growing appetite for maintenance dollars, has proposed slashing various budgets to anticipate future revenue shortfalls.

Deputy Executive Director Steve Simmonsoutlined those cuts in a presentation before the Texas Transportation Commission this morning. In his remarks, Simmons said that cuts to federal funding means that the agency can no longer meet the letting and funding of current projects on the books and will drastically scale back current work.

"We need to identify the optimal distribution of our limited resources," Simmons told the commissioners. "For example, it makes no sense to keep our consulting engineers on a budget at half a billion dollars if we know we will not have the money to build the projects they are designing."

At the same time, TxDOT must keep planning projects, Simmons said. "Whether state and federal legislators decide to make short-term improvements to transportation finance or they allow us access to private capital in order to solve our long-term needs, we need to be prepared."

Simmons offered a short list of cuts and policy changes in 2008 intended to carry the agency through anticipated funding shortfalls: The consultant engineering budget will be slashed by 57 percent, or roughly $250 million, with work shifted to in-house employees to meet development goals.

Simmons acknowledged this likely would lead to an outcry from the engineering community. The department will be ready to solicit and input to make the move from private sector to public agency as smooth as possible.

The agency's right of way acquisition budget also will be cut almost in half in 2008, from $500 million to $275 million. "Similar to contracted consultants, we will have little need to acquire right of way if we can't build anything on it," Simmons said.

TxDOT also will change its purchasing practices. The agency will now approve all purchases in the districts and divisions "from bulldozers to paper clips," Simmons said. Simmons said it was the agency's duty, given limited resources, to make sure expenditures went to the highest priorities.

A firing freeze also will take effect at TxDOT, with only Executive Director Amadeo Saenz being able to make an exception to the policy. Simmons said the agency would actively look for ways to consolidate functions in both district and agency offices to maximize cost savings and efficiencies.

Simmons also acknowledged, in his comments, that given the current circumstances, the agency may have stepped a little beyond its means when the recent round of legislation gave the agency so much power to leverage federal with private funds.

"Let me clarify that I am not saying we are currently operating inefficiently," Simmons said. "After the 2003 legislative session, we successfully took the tools we were given and accelerated projects using those tools. After the 2007 session, it is clear that we need to pull back."

TxDOT ramped up for an increased program, Simmons said. Now the agency must take an opposition course as focus shifts and the financial capabilities of the agency dwindle.

ã Copyright November 15, 2007 by Harvey Kronberg, www.quorumreport.com, All rights are reserved

Austin-San Antonio Corridor Council.