In a recent government meeting, Scott Granis, a third-generation construction manager from Grannis Brothers Stone and Asphalt, highlighted significant challenges facing Pennsylvania's Department of Transportation (PennDOT) due to rising inflation and costs. Granis praised Secretary Carroll's leadership but emphasized the urgent need for addressing the loss of buying power within the department.
Granins provided a detailed analysis of funding trends, noting that while PennDOT's Transportation Improvement Program (TIP) budget has increased from $77 million in 2015 to $92 million in 2023, this 20% rise fails to keep pace with inflation. He explained that, adjusted for inflation, the original $77 million would equate to approximately $108 million today, revealing a shortfall of $16 million. Furthermore, he indicated that the current bid index suggests a need of around $150 million for district nine alone, highlighting a stark contrast between available funds and actual project costs.
Despite an increase in overall lettings from $2.6 billion to $3 billion, Granis pointed out that the number of projects has decreased, with 100 fewer projects being completed. This discrepancy raises concerns about the effectiveness of funding allocation and project execution.
Granins also shared a local example from Blair Township, where a $98,000 paving project in 2014 would now cost $130,000, resulting in significantly less road paved for the same investment. This trend underscores the broader implications of rising costs on local governments and their ability to maintain infrastructure.
The meeting underscored the pressing need for strategic adjustments in funding and project management to ensure that PennDOT can effectively address the infrastructure demands of Pennsylvania amidst ongoing economic challenges.