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August 12, 2010

Analyst: DOT expenses to outpace budget

The sluggish economy and declining gas tax revenues could leave Maine with a $720 million shortfall for its highways in two years.

A nonpartisan legislative analyst told transportation committee members Wednesday that Department of Transportation expenses are predicted to exceed projected revenues by $350 million in 2012 and by $370 million in 2013, MaineToday Media reported. Herb Thomson, director of communications for the Maine Department of Transportation, said more than 70% of the DOT's budget comes from fuel taxes, while the rest comes from motor vehicle licenses and fees, inspection fees and fines. Thomson told the media company the DOT has trimmed its work force by about 10% in the last five years, cutting 200 positions, to reduce its administrative costs.

The committee did not discuss solutions to the projected shortfall.

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