The governor is issuing a warning that about the Special Transportation Fund after a report that shows the solvency of the fund is in growing jeopardy and said several transportations projects planned across Connecticut could be at risk.
The report is from the Office of Policy and Management and the state Department of Transportation.
“For too long, Connecticut put off the tough choices necessary for making critical investments in our state’s transportation system and growing our economy – and now the bill is coming due,” Malloy said in a statement. “Today we are at a crossroads, and a decision must be made: will we cancel important projects and let our roads and bridges deteriorate, or will we endeavor to face these problems head on and find new ways to support our transportation system. My position remains clear: transportation is critical to our economic success and simply cutting our way out of this would be catastrophic to our state. As we prepare to enter a new year, I will encourage and facilitate continued dialogue with my fellow leaders in state government to ensure that action is taken, and taken soon.”
The primary sources of revenue for the Special Transportation Fund are the motor fuels tax; motor vehicle tax receipts; license, permit and fees; federal grants; interest income; oil company taxes; vehicle sales taxes; and general fund transfers.
In 2015, the Governor’s Transportation Finance Panel estimated that the fund could be depleted in around five years if no corrective action was taken and Malloy said the situation has continued to worsen.
While some corrective actions have been taken over the past couple of years, they were not enough to offset the negative trends now affecting the fund.
With the way things stand now, should the status quo remain in place, the DOT will be forced to significantly cut its operating budget and capital program, which would significant reduction highway, rail, and bus service to the public, according to the governor’s office.