Central Artery/Tunnel Project: Cost and Financing

GAO provided a statement for the record on Massachusetts' Central Artery/Tunnel project. GAO noted that: (1) there may not be sufficient state and federal funding to complete the project by 2004; (2) Massachusetts faces challenges in maintaining its commitment to its statewide road and bridge improvement program and the Central Artery/Tunnel project; (3) the total cost of the project is estimated at $7.8 billion, but the estimate does not account for the effects of inflation; (4) total project costs could exceed $11 billion; (5) it is too early to determine whether Massachusetts will meet all of its cost containment goals; (6) federal sources have provided $4.1 billion of the $4.7 billion obligated for the project; (7) Massachusetts plans to rely more on state funding sources to finance the project, since future federal funding is uncertain; (8) Massachusetts' plans to accelerate project construction has created funding shortfalls; (9) options to address funding shortfalls include short-term financing, extending the construction schedule, reducing the scope of the project, and reducing funding for other state transportation projects; and (10) Massachusetts is considering borrowing funds in 1998 to help finance the project and repaying these amounts with federal funds received in 2002.