Millions of dollars for roads bypass MoDOT

JEFFERSON CITY, Mo. -- For every $1 paid to the state in highway user fees, the Missouri Department of Transportation gets only 61 cents.

MoDOT director Henry Hungerbeeler said most Missourians believe the department receives every penny of the approximately $1.16 billion in annual revenue from fuel taxes, levies on motor-vehicles sales and license and registration fees to spend on road and bridge construction. He said the fact that MoDOT receives only $710 million of that revenue isn't known to most voters, who question the department's need for more money.

"The public doesn't understand it goes to other agencies," Hungerbeeler said.

That isn't MoDOT's fault, nor is revenue going to other agencies illegally, though some argue the General Assembly has skirted the intent of the Missouri Constitution in certain instances by appropriating road funds for other purposes.

The constitution gives a share of revenue from user fees to cities and counties for local road and bridge projects. The combined take of local governments is approximately $249 million -- more than one-fifth of the total.

But what is commonly considered "diverted revenue" is the roughly $195.8 million lawmakers appropriate to other state agencies.

The constitution requires the use of road funds by the Department of Revenue to cover the costs collecting the applicable taxes and the Missouri State Highway Patrol for "administering and enforcing any state motor vehicle laws or traffic regulations." Those two agencies receive the bulk the diverted revenue -- approximately $175 million combined.

Following dollars

However, State Auditor Claire McCaskill said in a June 2001 audit that lawmakers had become too liberal in giving money to some other agencies, including her own office, which received almost $784,000 in fiscal year 2001 for the costs of auditing MoDOT.

Other agencies receiving highway revenue McCaskill questioned include the Department of Economic Development and the state treasurer's office.

Chuck Miller, State Treasurer Nancy Farmer's chief of staff, said the office would prefer lawmakers appropriate the $585,000 it receives for investing MoDOT funds from another source and made that request annually since at least 1995. Miller said allocating road funds to the treasurer "is not good government."

"The treasurer's office has been on record for years that it would like those highway moneys replaced with general revenue," Miller said.

In response to McCaskill's audit, most other agencies agreed. However, finding replacement revenue has always been the stumbling block for lawmakers looking to stem the diversion.

Rep.-elect Scott Lipke, R-Jackson, called for ending the diversion during the recent election campaign. He said lawmakers will have to consider all the options for replacing the funds -- a tough task in tight budget year -- when they convene in January.

"It is not always a question of how to replace this money," Lipke said. "The first question anybody should ask: Is that money needed, period."

Lipke said some programs paid for with highway user fees could likely be eliminated.

While the constitution says the highway patrol is entitled to road funds, critics such as McCaskill have said some of those funds are used for purposes well outside a strict reading of the requirement that the revenue be used only for enforcing traffic and motor-vehicle regulations.

Approximately two-thirds of the patrol's $179.3 million budget comes from the road fund. Virtually every segment of the patrol's budget is partially funded with road money.

Among the areas McCaskill thought road money was being used, at least in part, for non-highway purposes included funding forensic labs, administrative expenses and paying employees of the patrol's Drug and Crime Control Division who don't generally work the roads.

However, Lipke, an assistant Cape Girardeau County prosecutor, said the patrol shouldn't lose its portion of the diversion.

"I tend to believe highway patrol funds can be defended because they directly relate to safety on our highways," Lipke said.

MoDOT chief financial officer Pat Goff said the question isn't one of cutting funding to other departments but ensuring that the use of road funds by other departments is as closely watched as how MoDOT spends its share.

"Let's have the same level of scrutiny," Goff said. "Four times the money goes to other state agencies as it takes as for the administration of the whole (transportation) department."

mpowers@semissourian.com

(573) 635-4608

TAX-GENERATED FUNDS

Revenue generated by the state's 17-cent-per-gallon fuel tax, motor vehicle sales tax and license and registration fees in fiscal year 2001 and how the money was distributed:REVENUE: $1.16 BILLION

Fuel tax

$653.7 million 56.1 percent

License fees

$305.3 million 26.2 percent

Sales tax

$205.8 million 17.7 percentEXPENDITURES: $1.16 BILLION

MoDOT

$710.1 million 61.0 percent

Other state agencies

$195.8 million 16.8 percent

Cities

$142.6 million 12.2 percent

Counties

$106.7 million 9.2 percent

Taxpayer refunds

$9.6 million 0.8 percent

SOURCE: Missouri Department of Transportation