Editorial

MODOT CUTS LEAD WAY ON STATE REDUCTIONS

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"MoDOT plans administrative cuts; $160 million will be redirected to roads and bridges over five years," read the headline over an Associated Press dispatch week before last. The trim, said to be spread over the next five budget years, comes as Missouri Department of Transportation planners look for ways to cut costs just as other state departments are being asked to do because of a softening economy and diminished growth in state revenue.

Certainly news such as this is welcome for hard-pressed Missouri taxpayers, who know that Gov. Bob Holden is pressing for sharply higher taxes to fund MoDOT's long-range transportation needs. These reforms, and more besides, will be needed before any such higher taxes will stand a ghost of a chance with voters.

Moreover, making such sizable cuts in administrative costs can easily send the signal to taxpayers that this fat should have been trimmed a long time ago.

The chairman of the Missouri Highways and Transportation Commission, S. Lee Kling, said the money will be redirected to highway and bridge projects. The savings will cover two-thirds of the $250 million shortfall in highway construction funds that the department expects as a result of an economic downturn.

Last fiscal year, state highway revenues were expected to grow 3.7 percent from sources such as fuel taxes, vehicle sales taxes and license fees. Instead, they grew only 0.9 percent, the department said.

"MoDOT has to do what any responsible business would do in this situation," said Kling, himself a longtime banker, insurance executive and investor. "We've got to look at how we're operating, and how innovation can help us work well within a very limited financial framework."

Among the planned cuts that have been presented to commissioners are:

Leaving vacant some positions, at least until October and perhaps permanently, phasing out some management positions and using more seasonal and part-time employees.

Changing from standard lighting to high-tech lighting in traffic signals.

Using more recycling and improved practices in sign manufacturing.

Reducing spending for travel, cell phones, pagers and food.

Consolidating offices or operations.

Leasing, instead of purchasing, vehicles and heavy equipment.

Other state departments would do well to look to MoDOT for examples of how costs can be lowered without harming -- or even improving -- basic programs.