Walker official predicts worsening roads, rising debt

Madison — The share of Wisconsin highways in poor condition is on track to double over a decade, debt payments are set to rise for the next several years and state costs are poised to outpace new money for road and highway projects, Gov. Scott Walker's transportation secretary told lawmakers Tuesday.

There are 12,000 miles of Interstate, state and U.S. highways in Wisconsin and by 2027 42% of them will be in poor condition if the state doesn't find new revenue or other solutions, state Transportation Secretary Mark Gottlieb testified Tuesday.

In the coming years, the state is expected to end up using up to a quarter of every dollar in its road fund for debt payments under Gov. Scott Walker's two-year plan to borrow a half billion dollars for highway and bridge projects, Gottlieb said in more than three hours of painstaking testimony.

In addition, tight funding could mean a one-year delay in completing work on Highway 10/441 in Appleton — a project that Walker himself said in September would stay on track, the transportation head said, though Gottlieb later walked back that comment after Walker's office denied it.

Republicans crank up highway dispute

Speaking to the Assembly Transportation Committee, the state's top highway official defended Walker's plan to not raise gas taxes or vehicle fees and to instead close a two-year $1 billion shortfall through borrowing and project delays. But he acknowledged it would lead to more and more bad roads and could delay the completion of all the state's major planned road projects by as much as decades.

"If the funding levels proposed in the department’s budget continue, I have indicated that, yes, system conditions will deteriorate," Gottlieb said of the path laid out by Walker.

The growth in state taxes and fees will be less than one third of the recent growth in inflation, Gottlieb said.

"The governor has made a determination that now is not the right time to raise taxes on Wisconsin businesses and families,” the secretary said.

One wildcard on the issue will be whether President-elect Donald Trump can persuade Republicans in Congress to do a massive infrastructure bill – a measure that could be controversial because it could add to the federal debt. Gottlieb has ordered staff to prepare for such a bill but isn't counting on one.

"Who knows if that's going to happen or not?" he said.

No easy answers to Wisconsin road funding problem

GOP split on roads

The issue of transportation has split GOP lawmakers and Walker more than any other in recent years and the panel's lengthy hearing Tuesday sought to probe that split.

Walker says he won’t raise gas taxes or vehicle fees unless an equivalent cut is made in other taxes. Assembly Speaker Robin Vos (R-Rochester) and Joint Finance Committee co-chairman John Nygren (R-Marinette) argue a tax or fee increase may be necessary.

"We’re going to have to do something if we want to have a safe and efficient (highway) system," Nygren said, summarizing a view that he said has prevailed in state government for years.

But Rep. Joe Sanfelippo (R-West Allis) picked out several examples of Department of Transportation spending, such as employee travel and the use of expensive materials such as stainless steel bars to strengthen concrete.

"You're building these projects and sparing no expense," said Sanfelippo, arguing that the agency could reduce spending.

Two Republicans in the state Senate Monday contended that trying to keep all road projects on schedule could mean a dramatic increase in the state’s gas tax, which stands at 32.9 cents per gallon.

“We don’t have a revenue problem; we have a spending problem,” said a statement from Chris Kapenga (R-Delafield). “That’s where the focus needs to be, which is why I support Governor Walker’s plan, where taxes are not raised.

Gottlieb pointed out that approving $500 million in borrowing over the next two years would be the lowest level of borrowing for transportation projects in 15 years. But debt levels would continue to rise for several years before the state could start paying them down.

In addition, the state would delay a series of projects by up to three years: the Highway 10/441 work; the leg of Interstate 94 south of Milwaukee; a section of Highway 18/151 on Madison’s south side; Highway 15 in the Fox Valley; and Highway 23 between Fond du Lac and Plymouth.