Gov. Branstad announces identification of $50 million in Road Use Tax Fund efficiencies
Tax-payer funds saved are equivalent to a two-cent highway user fee increase
Today, during his remarks at a Transportation Day 2012 event in Des Moines, Gov. Terry E. Branstad announced that the Iowa Department of Transportation (DOT) has identified $50 million in Road Use Tax Fund (RUTF) efficiencies.
The full report can be found here: https://governor.iowa.gov/wp-content/uploads/2012/01/Road-Use-Tax-Fund-Efficiency-Report-FINAL1.pdf
“I am pleased today to announce, along with Director Trombino, that the state has found $50 million in in efficiencies that will be put towards the Road Use Tax Fund,” said Branstad. “In a time when Iowans across the state are tightening their belts, state government must spend dollars we receive more efficiently and streamline operations to maximize every dollar.”
Gov. Branstad and Lt. Gov. Reynolds applauded Trombino for his department’s efforts in responding so quickly and thoughtfully to the fiscal and administrative challenges. The governor has directed Trombino to begin taking necessary steps to implement the efficiency measures outlined in the report.
“The hardworking Iowa taxpayer is the real winner today,” said Lt. Gov. Kim Reynolds. “It would be easy for the Department of Transportation to request additional funds to meet the state’s obligation, but instead, the Department of Transportation and Director Trombino sat down and looked internally at more effective ways of operating. Their diligence is to be commended.”
In November 2011, as a direct response to a recommendation by the Governor’s Transportation 2020 Citizen Advisory Commission, Gov. Branstad directed the Iowa DOT to convene meetings with the cities and counties to review the operation, maintenance and improvement of Iowa’s public roadway system. The purpose of the meetings was to identify ways to jointly increase efficiency, with a target of identifying $50 million in efficiency savings could be captured from the $1.2 billion of RUTF monies provided to the Iowa DOT, cities and counties.
Earlier this week, Iowa DOT Director Paul Trombino, III, presented Gov. Branstad with a report detailing 13 programmatic and partnership efficiencies totaling $50 million in either one-time or annual savings.
The following efficiencies were identified:
- Post-Letting project cost. Projected savings: $10 million, annually
- Rest Areas and commercial motor vehicle weight stations. Projected savings: $1.5 million, annually
- Uniform Revenue collection. Projected savings: $8 million, annually
- Statewide roadside improvements. Projected savings: $1 million, annually
- Statewide traffic control devices: Projected savings: $1 million, one-time savings
- Right of Way parcels. Projected savings: $1 million, annually
- Asset management. Projected savings: $11 million, one-time savings
- Highway project concepts. Projected savings: $5 million, one-time, over 5 years
- Surface Transportation Program (STP). Projected savings: $5 million, annually
- Local jurisdiction partnerships for roadway maintenance: Projected savings: $500,000, annually
- Iowa DOT facilities, fleet and printing operations. Projected savings: $500,000, annually
- Streamline regulatory permitting process: Projected savings: $500,000 annually
- Motor vehicle enforcement. Projected savings: $5 million, annually
- Total Annual Savings: $33 million
- Total One-Time Savings: $17 million
“I recognize some of these measures will require legislative action, approval of the Iowa Transportation Commission or cooperation with other federal, state and local agencies, I have full confidence in Director Trombino’s ability to work with these various groups to successfully implement the plan,” said Gov. Branstad.
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For more information, please visit www.governor.iowa.gov.