Most Louisianans don't need an outsider to tell them that the state's roads and bridges are in bad shape.
But a new report from an out-of-state consulting firm has revealed just how much it would cost taxpayers for the Department of Transportation and Development to catch up on its $19 billion backlog.
Boston Consulting Group, in a report commissioned by the Legislature after Gov. Jeff Landry ordered the agency to conduct a review with an eye toward "reform" and "rehabilitation," said the department would need its budget boosted by $1.2 billion per year to reduce the backlog and maintain current operations, undertaking four big projects per year.
The BCG folks summed up their conclusions thusly: "State revenue sources that are dedicated to DOTD are insufficient, have not kept pace with cost growth, are not sufficiently diversified, and often lack flexibility."
The consultants also noted that the department's debt has grown to the point where it impacts the work of the agency. DOTD projects often run way past their expected timelines, the consultants wrote.
Some of the problems they identified aren't DOTD's fault. Lawmakers are allowed to add items to DOTD's budget without feasibility studies, and unexpected influxes of one-time money often make it difficult to plan and execute multiyear projects. The agency also faces staffing shortages and public trust problems, the report noted.
In order to fix the problems, BCG recommended raising the state's gas tax, which has remained the same for more than three decades as costs have risen. It also put forward other potential solutions, such as imposing taxes on electric vehicle sales and ridesharing services or creating "road usage fees," i.e. tolls or other charges.
They also urged DOTD to develop a scoring system to help prioritize projects and work to make the contracting process faster and more efficient.
In response, DOTD Secretary John Donahue said agency leadership is "gathering information" and plans a response before Jan. 15, as required by Landry's order.
None of these findings will surprise anyone who has driven on Louisiana's roads and bridges for any length of time. Similarly, it also seems obvious that the state needs to figure out ways to increase DOTD's budget.
Raising taxes, fees or other forms of revenue have proven unpopular with a large swath of the state's voter base, and therefore tricky for political leaders.
Nevertheless, we don't believe this was a wasted effort. We applaud DOTD's leadership and Gov. Landry for undertaking a wholesale study of the agency with an eye toward reforms that could make it more efficient.
Louisiana's residents have long been cynics when it comes to the state's critical infrastructure. But we believe real reform proposals, created not out of political expediency but a genuine desire to make things better, could find firm support from voters.