Economic Return from Transportation Investment -7a

Investment in transportation improvements has long been held as a major economic engine that drives growth in job creation, personal income and new value added to Missouri’s economy.

Embed
Is Responsive
Embed Code
Is Responsive
Embed Code

Result Driver

Contact Photo
Todd Grosvenor
Todd Grosvenor
Title
Financial Services Director
Department
Financial Services
Contact Info

Email: Todd.Grosvenor@modot.mo.gov

Phone: (573) 751-4626

Measurement Driver

Contact Photo
liz photo
Elizabeth Prestwood
Title
Policy and Innovations Program Manager
Department
Transportation Planning
Contact Info

Email: Elizabeth.Prestwood@modot.mo.gov

Phone: 417-829-8016

Write Up:

Investment in transportation improvements has long been held as a major economic engine that drives growth in job creation, personal income and new value added to Missouri’s economy.

Based on MoDOT’s 2020-2024 Statewide Transportation Improvement Program investment of $6.2 billion, the program is estimated to create 4,940 jobs – a 4% increase when compared to MoDOT’s 2019-2023 STIP.  The average number of jobs created increased in line with the increase in expenditures. 

Transportation investments are expected to contribute $15 billion of economic output during the next 20 years, resulting in a $2.49 return on every $1 invested in transportation, which is fairly consistent with the last four years of STIP analyses. The slight decrease in economic return is due to the larger percentage of highway and bridge preservation expenditures compared to the previous year. Current funding levels are only sufficient to maintain the current transportation system in its current condition rather than new major projects that offer a larger economic return. Missourians have consistently said they want us to take care of the existing system first, a $55 billion value that carries a $125 billion replacement cost.

Purpose of the Measure:

This measure tracks the economic impact resulting from the state’s transportation investments. 

Measurement and Data Collection:

MoDOT works with the HDR, Inc. to perform economic impact analyses for the state’s transportation investments. The analyses are performed using a model called the Impact Analysis for Planning. The IMPLAN model results demonstrate a strong link between transportation investment and economic development.

This target was set by analyzing historical performance.  MoDOT would like to reach the performance level of $3.62 which is consistent with what was achieved in the 2014-2018 Statewide Transportation Improvement Program cycle.