Similar to the Consumer Price Index which tracks the price of consumer goods, the Federal Highway Administration tracks construction costs for road improvments and other transportation infrastructure through the National Highway Construction Cost Index (NHCCI)
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Over the 20-year span from 2004 to 2024, cumulative highway construction cost inflation (NHCCI) rose by approximately 194.4%, almost triple the 66.1% cumulative increase in general consumer prices (CPI-U). Sales tax revenues are based off of the CPI while costs for construction are based off the NHCCI in short while revenues have increased costs have increased nearly three times the rate. This shows why the 1% increase in this tax is necessary for the town to keep up with costs for road projects.
Here is a sample of projects the town is wanting to do. In the first column is how much is currently costs. The NHCCI is expected to continue to go up anywhere between 6 and 8% each year. A yes vote on 2E will approve debt funding to help complete projects before inflation. While there will be finance costs completing the projects sooner will avoid inflation costs thus saving the town money over time.
