Senate panel questions DelDOT's budget concerns and future project funding

Concerns over Delaware's transportation funding took center stage during the Joint Finance Committee meeting on February 27, 2025, as lawmakers scrutinized the financial health of the Department of Transportation (DelDOT).

Senator Buxton raised critical questions about DelDOT's budget, referencing claims from industry insiders that the agency is "broke." He sought clarity on whether DelDOT is struggling financially, particularly in light of rising expenses and stagnant revenue from fuel taxes. Bridal Maxwell from the Office of Management and Budget acknowledged the challenges, noting that DelDOT's primary revenue source, the fuel tax, has not been adjusted in years. As alternative fuel sources gain popularity, this revenue stream is declining, leading to tighter budgets and postponed projects.

The discussion also touched on the impact of increasing electric vehicle usage on fuel tax revenues. Lawmakers are considering how to address this shift legislatively, as traditional fuel taxes may not suffice to support future transportation needs.

In addition to budgetary concerns, the committee discussed the Delaware Transit Corporation's (DTC) subsidy reduction, with projections indicating a rise in ridership for fiscal year 2026. This suggests a potential rebound in public transportation usage, despite previous financial strains.

As the meeting concluded, the committee members expressed a need for ongoing dialogue about DelDOT's financial strategies and the implications of changing transportation trends, setting the stage for future discussions on how to ensure sustainable funding for Delaware's transportation infrastructure.