An annual $264 million increase in state highway bridge infrastructure investment would support nearly $600 million in economic activity throughout all sectors of the economy in Kansas, according to a new report.
The analysis was conducted by Alison Premo Black, chief economist for the American Road & Transportation Builders Association, and found that the additional demand would create or support 5,000 jobs – with more than half in sectors outside the construction industry. The study was commissioned by the Kansas Contractors Association.
A $264 million annual investment level is consistent with an increase in the state motor fuel tax of 15 cents per gallon, costing the average driver $5 to $10 a month. The increase would help generate $594.3 million in additional business output, grow the state and local tax base by almost $29.4 million, increase the gross state product by $304 million, and support or create jobs across all major sectors of the state economy, Black said.
It would also help restore some of the cuts to the Kansas highway program since fiscal year 2011. Come fiscal year 2019, the Kansas state legislature will have diverted about $3.5 billion from the state Highway Fund to the General Fund and other state agencies for non-transportation purposes. Black said the diverted funds have delayed more than $600 million in road projects, resulting in the loss of 3,000 construction jobs.
If that funding was instead invested in highway and bridge projects, the construction work would generate $7.8 billion in economic activity throughout the state and provide an additional $4 billion in gross state product.