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Revenue estimates impact on CTP

April 13, 2001 (Release 01-052)
News Contact: Marty Matthews, (785) 296-3585

Revenue estimates impact on CTP

The Kansas Department of Transportation is warning that predicted state revenue shortfalls could have a severe impact on the Comprehensive Transportation Program (CTP). This warning comes after a meeting of the Highway Revenue Estimating Group on April 11 that resulted in an anticipated funding deficit for the CTP of $274 million. Money available for aid to cities and counties for roads would also be reduced by more than $11 million during this period.

"The bottom line is that it may not be possible to complete all the CTP's planned projects in the face of declining revenues," said E. Dean Carlson, Secretary of Transportation. "Further cuts in expected revenue would almost guarantee that the program as passed by the Legislature will not be completed.

"The Highway Revenue Estimating Group delivered the second round of bad news we've had this month," Secretary Carlson continued. "The first round was April 4 when the Consensus Revenue Estimating Group said State General Fund revenues would be $185 million short of projections for the fiscal year ending June 2002."

Those estimates were significant because a portion of the Comprehensive Transportation Program funding relies on state sales tax revenues. The April 4 State General Fund adjustment results in a Comprehensive Transportation Program reduction of $119 million over the next eight and a half years. This amount could increase if the approved FY 2002 demand transfer is reduced to reflect revised sales tax projections.

"Now the Highway Revenue Estimating Group tells us other State Highway Fund revenues will also be far below projections," said Secretary Carlson. "Taken altogether, it now looks like the Comprehensive Transportation Program will suffer reduced revenue of at least $224 million over the next eight and a half years."

The Highway Revenue Estimating Group's estimates affect the State Highway Fund components of the CTP. Those estimates cut expected revenue from registration fees by $70 million and cut expected motor fuels tax receipts by $35 million, including an expected loss in interest revenue.

Secretary Carlson also pointed out that the group agreed to look at projected growth rates over the remaining life of the CTP when it meets again in November. Changes to the growth rate would also impact estimated revenues.

The Highway Revenue Estimating Group is led by the Division of the Budget and Legislative Research with representatives from the Kansas Department of Revenue and KDOT.

The Comprehensive Transportation Program is a 10-year program passed by the 1999 Kansas Legislature and signed into law by Gov. Bill Graves in May 1999.

This page last updated 04/13/01