Bob Beers
State senator suggests delaying some major highway projects
CARSON CITY -- State Sen. Bob Beers insisted Thursday that extending loan payoff dates and delaying non-essential highway projects would allow the Department of Transportation to cover a $3.8 billion construction shortfall without tax increases.
"It's not a $3.8 billion shortfall," the Las Vegas Republican told a joint meeting of the Senate Finance and Assembly Ways and Means committees. "It's a $1.3 billion shortfall. What they have been saying is unduly alarmist.
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In looking at the list of major highway projects that a citizens task force found should built between now and 2015, Beers said a couple of the projects could be delayed.
He said the Transportation Department should delay some highway projects, extend the bond retirement on others and complete all projects without additional revenue.
He said revenues the agency receives in gasoline taxes will increase in coming years and that revenue should cover the bond debt.
But Transportation Department officials said Beers' analysis was incorrect.
Russ Law, chief of the agency's operations analysis division, said the department has only a $400 million bonding capacity and the $3.8 billion in highway construction is essential to reduce congestion.
He said the agency must spend $100 million a year to cover payments on current bonds. Paying more on bond payments would cripple the Transportation Department's normal construction and maintenance work, Law said.
"The projects are needed now, not 10 years from now," Law said. "The longer you extend out bond payments, the more interest you pay."
His agency has calculated that it would need an additional $270 million a year to pay off a $3.8 billion bond over a 20-year period. Interest would be $1.4 billion.
Senate Majority Leader Bill Raggio, R-Reno, asked Transportation Department officials to develop a one-page chart explaining how bond payments should be made. He said he imagined there would be many hearings on the road construction program after the Legislature goes into session on Feb. 5.
During 13 meetings over the past 1 1/2 years, a task force of 17 Nevadans agreed that a series of major highway projects should be constructed as soon as possible to ease congestion.
They included spending $1.3 billion to widen U.S. Highway 95 from the Spaghetti Bowl in downtown Las Vegas to Foothills Road in Henderson and $1.2 billion to widen Interstate 15 from Tropicana Avenue to the Spaghetti Bowl.
Beers said construction could be delayed on two other projects:
• The $330 million widening of I-15 from the Spaghetti Bowl to Apex.
• The $100 million rebuilding of U.S. 95 between Washington Avenue and Kyle Canyon Road.
Most funds to construct the I-15 project, however, are included in Gov. Jim Gibbons' proposed state budget.
"We had a group of people come up with a wish list, a fine, talented, wonderful group of people, but they were not elected to represent the people's interest," added Beers, a certified public accountant. "The people's interests are balanced between wanting an uninterrupted commute and paying even higher gas taxes."
Raggio had begun the hearing by telling Transportation Director Susan Martinovich that legislators "expect miracles out of you."
