Highway project delays rack up $700 million cost overruns

The Milwaukee Journal Sentinel ^ | June 13, 2016 | Catie Edmondson

[Tolerance Sucks Rocks]

Madison— Faced with delays and inflation over the past five years, four major state highway projects — including a Madison artery — have accumulated overruns in excess of $700 million.

While some of these increases come from faulty cost estimates or unavoidable inflation, the new figures underline the obvious: Delays can be costly for Wisconsin taxpayers. When projects are paused because of financial challenges in the state's road fund, the price of materials, labor and real estate can rise.

The numbers compiled by the Milwaukee Journal Sentinel underline the urgency of a divisive issue for Wisconsin's Republican leaders: finding a long-term but palatable solution for paying for the state's highway and bridge projects.

If the state can't use tax and fee increases or spending cuts to ensure the state's transportation fund can pay for its current projects, then the state could face more construction delays and rising costs.

"I've always had the sense of urgency because we've seen that this has been occurring for the past decade. It's not like it's a surprise," Assembly Speaker Robin Vos (R-Rochester) said of these latest cost hikes.

"You want to look and say, 'Where are the revenues now, where are the needs, where are the things we can realistically put off, and where are the things that if we put off, it would be bad for taxpayers?'" Vos said. "Either we don't need the projects, which means we should cancel them or prioritize them, or we need to say, 'How are we going to pay for these and what's a realistic time to do so?'"

The four major highway projects were each delayed for one year because last summer Gov. Scott Walker and GOP lawmakers couldn't settle on an approach to paying for them.

[Eaker]

You bid the job, now do the job for your price.