State approves plan to borrow $600M for road construction

The cost of construction is on the rise because of fuel costs.
COLUMBUS (AP) -- The state approved a six-year plan for highway work that includes borrowing $200 million in each of three years as the cost of construction increases.
Construction costs have gone up 11 percent during the past year, according to the Ohio Department of Transportation. Asphalt, concrete and steel are more expensive, mostly because of higher fuel costs, and the increase in gas prices also is affecting the cost of running the agency's vehicle fleet.
The plan, approved last week by the agency's Transportation Review Advisory Council, calls for increased spending in 2007 and 2008 before decreasing for the next four years. Carla Cefaratti, the ODOT deputy director in charge of local programs, said the agency will not be able to add major projects not already in the budget without significant federal aid.
The state will issue $200 million in bonds in 2008, 2009 and 2010. By 2013, interest on the bonds will cost $76 million a year, but Cefaratti said it's cheaper than postponing work while construction costs skyrocket.
Projects
Some projects, such as new interchanges on Interstate 270 in Columbus, have been put off, while others, such as a bus and rail terminal downtown, have been scrapped.
A large project receiving funding in 2007 is the conversion of state Route 8 between Cleveland and Akron into a freeway.
Andrew Gall, ODOT's chief of staff, said the department treats all parts of the state equally when viewed over time.
"There is a fairly even split among the regions of the state," Gall said. "You'll see progress in all corners of the state in terms of major interstate routes."