NEW: Chafee Touts His Plan for Transportation Funding
Wednesday, March 16, 2011
Governor Lincoln Chafee touted his new plan to fund transportation projects at a press conference Tuesday with DOT Director Michael Lewis.
Replacement of the Pawtucket River Bridge is a high priority for RIDOT.
The department is planning three new structures, replacing each bridge carrying northbound and southbound traffic on I-95, and building another bridge to help carry highway traffic during phased construction. The third bridge will carry on- and off-ramps to George and School Streets when the project is finished. The project is scheduled for completion in the summer of 2013.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“It is significant that we are discussing my budget’s plan to set up a dedicated fund for transportation projects just steps from the Pawtucket River Bridge,” Chafee said, reflecting on the state’s debt issues.
State debt on bonds is $432 million
The state’s accrued debt on bonds now stands at $432 million, requiring the Rhode Island Department of Transportation to spend $43.7 million in the current fiscal year on debt service payments. These high debt service payments limit the Department’s ability to take on new projects and efficiently maintain the state’s 800 bridges and nearly 3,000 lane miles of road, according to the Governor’s office.
To end the state’s habit of borrowing, and thus amassing debt to fund infrastructure projects, Chafee has proposed gradually transferring certain fees collected by the Division of Motor Vehicles to a dedicated fund for transportation projects.
By doing so Chafee also hopes to avoid future increases in gas taxes. “With a dedicated funding source, rather than continuing to borrow and pay interest for these projects, we can perform preemptive upkeep and repairs and avoid costly replacements,” Chafee said.
The Governor’s budget plan would allow the state to eliminate future borrowing for transportation by 2016.
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