UDOT puts $3.9B in projects on hold

With a recession and lower-than-anticipated tax revenues, the Utah Department of Transportation announced Thursday it is delaying about 50 projects totaling $3.9 billion.

The largest project is 20 miles of I-15 reconstruction in Utah County that will cost $2.6 billion, UDOT executive director John Njord said.

Other delayed projects include Mountain View Corridor, connecting Salt Lake and Utah counties, and the $20 million study of expanding Davis County's Legacy Parkway to the north.

The projects that UDOT decided to delay are those that are funded through sales taxes in the state's general fund. "A large portion of our highway construction program is funded through general funds," Njord said. Other sources of revenue for UDOT include gas taxes, vehicle registration fees and federal funds.

The decision was made after talks with the Governor's Office of Planning and Budget over the past week.

"I think what's occurred here is that in anticipation that the revenues are not going to be what were expected by the Legislature, we're in the process of scaling back our expenditures," Njord said. "This will provide flexibility for the Legislature and for the governor's office to balance our budget."

UDOT issues bonds to pay for construction projects, paying back the bonds with revenues it receives from taxes.

"In order to issue that debt, you have to be able to demonstrate that you have a revenue stream to pay it back. ... What we're seeing is the revenue stream that we would use to issue debt is not going to be there."

This year UDOT antici-

pated receiving upward of $300 million in sales taxes, Njord said. "We've spent a portion of that and we've committed a portion of that to projects that are currently under contract," Njord said, explaining that portion was about $50 million.

A spokeswoman for Gov. Jon Huntsman Jr. said it's unclear how much of that anticipated $300 million the state will actually receive. "We do not have revenue estimates yet, but certainly we are asking UDOT to be proactive in helping us rein in current spending and furthering any obligation until we have a better idea of the budget situation," said Lisa Roskelley.

The projects that UDOT has announced are on hold are those in which construction hasn't begun. "Projects under construction with a contractor on board, those projects will continue," Njord said. "But projects that have not been awarded to a construction contractor will be put on hold."