Cost-share is a helpful tool, but not a solution to current crisis
by Steve Miller, Chair, Missouri Highways and Transportation Commission
Some have wondered over the last several weeks whether re-instating the MoDOT cost-share program or creating some other form of cost-share might offer a solution to the current funding crisis. A cost-share program can be an effective tool for certain targeted projects, but it is important to understand how it works, the appropriate uses for it and its limitations.
MoDOT developed a cost-share program to provide financial assistance to local communities in developing state highway and bridge projects those communities considered to be of particular importance. Typically, it takes the form of a project which a community hopes to expedite years ahead of schedule or a project to attract additional economic development opportunities. Historically, such projects have not been aimed at preserving the current system but in adding to it in some capacity (e.g. upgrading a two-lane corridor to four lanes or building a new interchange).
On a cost-share project, MoDOT agrees to match up to 50 percent of the total project costs on the state highway system; anything off the state system must be paid for by the local community. On certain projects with an economic development component, MoDOT may participate up to 100 percent where the Department of Economic Development verifies the creation of a targeted number of jobs. Local communities compete for such funding based on economic development, transportation need and public benefit.