Soaring Asphalt Prices Threaten Road Projects RENO, NV (KUNR) - When the state signs an agreement with a road construction company, the contract contains an escalation clause in the event raw materials increase in price before the work is complete, and according to Scott McGruder of Nevada Department of Transportation or NDOT, the state has had to pay more on several projects because the cost of asphalt has doubled over the past 9 months. The state can't say just how much high asphalt prices have cost taxpayers, but officials say higher material prices certainly contribute to a projected 6 billion dollar deficit over the next 8 years, Scott McGruder.

McGruder: We're in kind of in the perfect storm here in the state, especially when it comes to road building because gas consumption has gone down slightly because our traffic counts are down all over. That means less gas tax revenues coming into the state. Now you also have higher oil prices which means higher prices for not only getting the trucks and all asphalt to the projects. So we're kind of in a situation state wide where we've had to cut back on some of our projects.

Despite double digit budget cuts and increasing costs, no projects have been cancelled so far, but several have been postponed in an effort to trim spending. Looking to the future, more budget cuts are a distinct possibility, and the prospects for asphalt prices are not pleasing. Almost every NDOT project uses asphalt, and some estimate the cost of the material may double again over the next year.
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