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Thursday, April 25, 2024

Report: Department of Transportation miscalculated cost of projects by billions

Wisconsin Department of Transportation underestimated the cost of completed and ongoing highway projects due to failure from officials to account for inflation and other unexpected cost increases, according to an audit report released Thursday.

The Legislative Audit Bureau's report discovered a $3.1 billion cost increase in 16 ongoing highway projects started in August 2016. The projects, originally expected to cost $2.7 billion, will end up costing $5.8 billion.

DOT said the unexpected cost increase caused delays in project work.

The audit also found that 19 finished transportation projects actually cost $1.5 billion, which is $772.5 million higher than initially estimated.

In addition to the findings, the audit offered some recommendations for DOT to use its funds more effectively, such as: taking public opinion into account, updating the annual fund-allocating method and taking advantage of the program effectiveness performance measure.

Dave Ross, the new secretary of DOT who took office in January, said he aspires to improve DOT’s efficiency.

“My goal for the DOT is to maximize Wisconsin’s transportation infrastructure without increasing the burden on taxpayers,” Ross said in a statement. “The Legislative Audit Bureau report provides a road map to improved efficiency and transparency at the DOT. As the new Secretary, I couldn’t ask for more timely help.”

The audit also assessed highway conditions around the state. The proportion of state highways rated in good condition steadily decreased from 53.5 percent in 2010 to 41.0 percent in 2015.

“Our road conditions are only getting worse and a long-term solution is needed,” State Assembly Speaker Robin Vos said in a statement. “It’s clear Wisconsin is trying to do too much with too little and taxpayers are not getting their money’s worth.”

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