The $393 million oil company assessment Gov. Doyle says he will propose for his 2009-11 budget should go to the Wisconsin Department of Transportation, according to WisDOT’s budget request.

The money would help pay for major spending in the next two years including, according to the agency:

•  $63 million in state funds to continue work on Interstate 94 from Milwaukee to the Illinois state line to meet the scheduled completion date of 2016 (a total of $571 million is proposed for the project is proposed in the budget request);
• $181 million to begin work on the Zoo Interchange in Milwaukee County so that construction can begin by 2012 and meet a completion date of 2016;
• $17.0 million to continue implementation of REAL ID;
• $100 million in General Obligation bonding, with annual debt service payments funded from the Transportation Fund, for transit in SE Wisconsin;
• expanding Hiawatha passenger train service; and
• inflationary cost increases for all highway-related programs and local aid programs.

“In addition to these initiatives, rising fuel and utility costs have made it more expensive to maintain current levels of customer service department-wide. For example, higher fuel costs have contributed to a need for additional funding for highway maintenance and for the Division of State Patrol,” WisDOT said. “As demands for transportation funding have increased, revenue growth has not kept pace. ”

Sales of taxable motor fuel declined this year, according to WisDOT.

Source: Wisconsin Department of Transportation.

Doyle said last week that the state is facing a $5 billion deficit. The governor has not said whether he would propose that the oil company assessment go to WisDOT.

The proposed oil assessment would include a provision prohibiting oil companies from passing the cost along to customers, WisDOT said.