South Dakota could face $130 million road shortfall

A $130 million yearly shortfall in the money needed to maintain roads and bridges and handle new projects may be on the horizon for South Dakota, according to state Transportation Secretary Darin Bergquist.

Rising construction costs and declining gas tax revenues are to blame for the possible shortage, Bergquist told a legislative committee studying needs and revenues in the road business Sep. 24.The numbers are based on the state Transportation Department's estimates of revenue versus costs to maintain the state highway system.

"Inflation is the reason we're here today and the reason we're in the position we're in today," he said.

The committee looked at needs Sep. 24 and had planned to discuss possible funding sources to cover the shortfall Sep. 26.

An extra $17.4 million a year is needed to keep bridges in their current condition, and another $25 million annually should be spent on needed expansions to the highway system, Bergquist said. The current budget also is $4.1 million short of what is required for road maintenance and $9.5 million short of needs for equipment.

Another list of $1 billion in requested projects isn't being considered at all for the moment, Bergquist said.

"We do not have funds identified and set aside to do these projects at this time, so there is a need."