According to New Hampshire’s top Transportation official, the state’s highway fund is on track for a nearly billion dollar deficit by 2018.
Transportation commissioner George Campbell was calm as he described the highway fund’s mounting deficit.
“We have a lot of adjustments to make and things we have to do to get to a break even number.”
But that’s just to end this year in balance. After July, Campbell projects the highway fund deficit to swell at an average rate of more than 70 million dollars a year. Some of that is because gas tax revenue has slowed, but most is due to increased construction costs and growing state obligations. Next year the fund is expected to collect 678 million dollars. But as Campbell was at pains to stress, current law requires about 2/3rd of that money to be spent things like debt service and federal matches, aid to cities and towns and turnpikes. So the main place spending could be cut would be in the cash set aside for basic highway operations.
“What I’m trying to tell you is you are looking at anywhere to a 30 to 40 to 45 percent cut in that operating fund, and that operating fund carries all the things that you normally see: bridge maintenance, highway maintenance, plowing, all the kinds of activities that you see out there.”
After Campbell finished his testimony, Democratic Senator Lou D’Alessandro said it’s important to remember that the challenges facing NH are far from unique.
“Every state in the United States is looking at problems. This is just one aspect of those problems.”
But the Senate’s lead budget writer also said the scale of the state’s problems demands bold action.
“Clearly, business as usual can’t continue. It just can’t continue, because you are letting the people down and you are not fulfilling your responsibility. And those points ought to be made clear to the public.”
How the state chooses to meet those responsibility will largely depend on the inclinations of the incoming legislature. Nashua representative David Campbell severed as vice chairman of the house transportation committee last term, and he’s expected to play a key role in shaping the House’s position moving forward. He says there’s no way the deficit can be closed by cuts alone.
“At some point we’re going to have to look at some sort of revenue solution here. Now, maybe there is some creative financing, maybe we can get some help from Washington, those are all things that can help. But right now we are looking at a big hole to fill.”
Campbell says increased gas taxes must be part of the debate. He adds that he’d favor steering any revenue generated by a gas tax increase into a dedicated fund.
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