Highlights of audit on Wisconsin Transportation Department

MADISON, Wis. (AP) - Highlights of a Legislative Audit Bureau report on the Wisconsin Department of Transportation, released Thursday:

- BAD ESTIMATES: The audit found that DOT badly underestimated costs of completed and ongoing major state highway projects. The cost of 19 completed projects over the past decade was $1.5 billion, or twice as much as the initial estimates. Sixteen ongoing projects are estimated to cost $5.8 billion, which is $3.1 billion above the original estimates.

- WHAT WENT WRONG? The audit says DOT officials did not sufficiently take into account the effects of inflation and other cost increases and could do more to control expenses and save money by meeting performance goals.

- RAGGED REPORTING: Semi-annual DOT reports to the Transportation Projects Commission, which sends projects to the Legislature for approval, excluded portions of project costs, even though state law requires the reports to contain all costs. One report on cost estimates for work on Interstate 39/90 between Madison and Illinois excluded $70.5 million in estimated costs for an interchange. Auditors say DOT officials aren’t required by law to include original cost estimates, making it hard to track cost changes.

- BIDDING FAILURES: The audit found the agency could have saved $53.1 million between 2006 and 2015 if it had met quarterly goals for soliciting construction contracts. Sometimes the agency would award smaller or higher amounts than anticipated in the goals. What’s more, 363 contracts awarded during that span got only one bid; the state could have saved $44.7 million if it had gotten two bids on the contracts.

- ANY RECOMMENDATIONS? The audit bureau recommended ways the DOT could improve management of the planning, engineering and maintenance of state highways. It also suggested law changes for the Legislature to consider that would improve agency operations.

- HOW ARE THE ROADS, REALLY? The proportion of Wisconsin roads rated in good condition has steadily decreased from 53.5 percent in 2010 to 41 percent in 2015, the audit said. Wisconsin’s roads are in considerably worse shape than six Midwestern states, the report found.

- WHAT’S THE REACTION? Gov. Scott Walker’s spokesman Tom Evenson said the report shows more savings can be found at the department and doesn’t change the governor’s opposition to raising gas taxes or other fees to pay for roads. Republican state Sen. Rob Cowles, who chairs the Legislature’s Audit Committee, called the report “devastating” and said the agency must change how it operates.

- WHAT DOES DOT SAY? Secretary Dave Ross said in a letter to the audit bureau that DOT has worked to improve cost projections over the last six years but “cost estimating always has inherent risks.” He said the agency will try to do a better job communicating how inflation will impact future costs to lawmakers and the public.

- WHAT’S NEXT? Cowles said he plans to hold a public hearing on the audit’s findings within the next two weeks. Walker releases his state budget on Feb. 8 and one of the biggest flash points is how to plug a nearly $1 billion projected roads budget shortfall. Walker refuses to raise taxes, while Assembly Republicans are pushing for that to be part of the solution.