Transportation agencies should fund operating personnel and expenses through operating rather than capital budgets.
In FY 2004, Massachusetts spent 44 percent of its highway funds on debt service, by far the highest in the nation. According to the Transportation Finance Commission, the Commonwealth spent $162 million in bonded capital funds for Mass Highway operations in 2006, including salaries for 1,000 people. Using so much debt means that more and more of the revenue stream in the future will be devoted to paying off the debt, rather than paying for new maintenance or construction needs.
Ending this practice and keeping personnel in the operating budget would save the Commonwealth $825 million over the first 20 years, and additional hundreds of millions in the long term.
20.a The EOTPW should phase out the practice of using capital funds for operating expenses as soon as possible