1 Major Highway Program Legislative Audit Bureau January 2004

2 Comparison of Selected Budgets (in millions) FY FY 02-03Change Corrections $ 326.1$ % DOT 1, , UW System 2, ,

3 Highway Program Appropriations (in millions) FY FY 02-03Change Rehabilitation$379.6$ % Majors Maintenance SE Freeways Administration TOTAL$685.5$1, %

4 Funding Sources for Majors (in millions) FY FY Revenue Bonds$106.1$130.2 Federal Funds Segregated Funds TOTAL$156.8$241.6

6 Cost Increases (in millions) Original Current HwyEstimate EstimateIncrease 12Whitewater$ 10.1$ % 110USH41-STH Chippewa Falls Bypass Houlton-New Richmond Sauk City-Middleton Eau Claire Bypass Wausau Beltline

7 Reasons for Cost Increases u Inaccurate initial estimates u Expansion of scope adding lanes adding interchanges building interchanges for higher speeds u High real estate costs

8 Value Engineering Study u Intended to lower project costs while maintaining all state and federal design and safety standards u Identified potential savings of $382.0 million u Per project potential savings ranged from 3 percent to 47 percent.

9 Environmental Issues u Long-standing interest in cost of environmental regulation u 1996 audit of DOT recommended tracking of costs u DOT estimates $29.1 million in FY

10 Revenue Trends (in millions) Revenue Source FY FY 02-03Change State$957.5$1, % Federal Revenue Bonds General Obligation Bonds (93.8) Local Program Revenue

11 Increasing Debt Service Costs

13 State Highway Spending Comparisons (in millions) Expenditures perExpenditures per Licensed Driver Capita Illinois$214$135 Indiana Iowa Michigan Minnesota Ohio Wisconsin National Ave

14 Recommendations u Improve financial and project cost reporting u Provide consistent information in project planning documents u Consistently communicate changes in project design and scope so effects on costs can be monitored