GDOT Now Paying For Getting Ahead of Itself
Decatur Metro | September 18, 2010The AJC reported a couple days back that it was revealed at a Wednesday agency board briefing that the “cash-strapped” Georgia Department of Transportation would need to put aside $75 million of its $1.8 billion annual budget to pay for “cost overruns on projects it rushed to bid during the flush years of the construction boom.”
At the time, GDOT was under pressure from Governor Perdue’s “Flash Forward” program, which hoped to cram 18 years of construction projects into 6. Ah, the tempting illusions – or shall I say “delusions”? – of growth.
But that’s not all…
The $75 million is one payment of several. As of 2008, said Angela Whitworth, DOT’s director of finance, the overruns added up to about $250 million, but DOT has been paid them down to about $158 million. The agency plans to set aside $50 million in the next fiscal year and $25 million the year after that.
DOT is also paying $185 million annually in debt service for the original cost of the projects, according to DOT officials. Last year the agency spent $1 billion on road projects.