A slump in auto sales has been a blow to the Missouri Department of Transportation’s bottom line.
State Transportation Director Pete Rahn says revenue for MoDOT fell off nearly five percent in the first four months of the fiscal year, a shortfall of more than $18 million. Rahn tells members of the Joint Committee on Transportation Oversight that the shortfall could reach $72.8 million if the trend continues. He projects faltering auto sales could create a $360 million hole in the five-year construction program.
MoDOT lives off motor vehicle sales and use taxes, which are down 11.3%.
Rahn says auto dealers tell MoDOT officials sales have sunk to near-recession levels, some suggesting they have even fallen to depression levels. He says the slump in auto sales is a great concern to MoDOT, since revenue from the motor vehicle sales tax is being used to repay the bonds issued after approval of Amendment Three. Rahn has assured members of the Joint Committee on Transportation Oversight that MoDOT officials are closely watching developments.