PEER Report #304

PERFORMANCE AUDIT OF THE MISSISSIPPI DEPARTMENT OF TRANSPORTATION’S ADMINISTRATION OF THE 1987 FOUR-LANE HIGHWAY PROGRAM, November 3, 1993, 32 pages

MDOT estimates that it needs to spend $613 million more than originally estimated to finish the 1987 Four-Lane Program and that Program revenues will fall short by $305 million. The Transportation Commission has proposed an extension of Program funding from August 31, 2001, to August 31, 2002.

In 1986, MDOT understated cost estimates by using statewide averages that did not factor in costs of bridges, interchanges, urban construction, and inflation. MDOT officials also did not refine original estimates, believing that changes might jeopardize approval of the Program by the 1987 Legislature.

MDOT’s administration of the Program has been ineffective because of:

• failure to monitor revenues and expenditures sufficiently to recognize potential funding problems in a timely manner;
• incomplete reporting of Program activities;
• failure to let all contracts necessary to complete Phase I of the Program by June 30, 1993, as required by state law; and,
• failure to use $424.2 million in interest earned on Program moneys to fund Program activities.

MDOT should refine its latest Program estimates and provide the Legislature with detailed projections at the beginning of the 1994 Legislative Session.

For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.