LFC analysts say $4.3B in large appropriations tracked; $5.4B outstanding across 4,700 projects as committee considers capital reform

Legislative Finance Committee analysts told the committee on May 20 that the state’s capital outlay program faces a large pipeline of unfinished projects and that policy changes could improve completion rates and strategic use of funds.

The briefing matters because outstanding capital appropriations can tie up state resources for years; LFC staff said earlier vetting, clearer reauthorization limits and use of a new capital development fund for planning and completion grants could improve outcomes.

Antonio Ortega, fiscal analyst for the Legislative Finance Committee, presented the million‑and‑greater report. "The million and greater report provides updates on 717 projects with appropriations totaling $4,300,000,000," Ortega said, and added that quarterly schedules show status and balances. Ortega told the committee the broader capital portfolio includes roughly $5.4 billion in unspent balances across more than 4,700 active projects (the figure did not yet include some recent 2024–2025 appropriations and certain GO bond projects).

Kelly Carswell, LFC staff, said the 2025 session added another significant tranche of capital appropriations and noted recurring structural challenges in applying funds to local projects: many local requests receive only partial funding, and a large share of local projects receive $250,000 or less. "There’s another big slug of money going into capital projects and infrastructure," Carswell said, summarizing the year’s appropriations and noting the administration and legislature used a combination of governor and member sponsorship to concentrate higher‑value local awards.

Key numbers and mechanics the analysts highlighted: - Million and greater report: 717 projects totaling about $4.3 billion in appropriations; attachment material maps project status and ratings. - Outstanding balances: roughly $5.4 billion across ~4,700 active projects (estimate excludes some 2024/2025 and GO bond projects). - Distribution patterns: majority of local projects in the bill (776 projects) received $250,000 or less; only a very small number received multimillion dollar awards, and most of those were sponsored by the governor or a late house/senate package. - Capital Development Program Fund: first distribution this year was about $24 million; statute allows funds to be used for planning/design and cash financing of projects under $5 million.

Analysts recommended the committee consider a set of reforms during the interim: adopt clearer reauthorization limits (examples: one‑time extension only, capped to a single year), require earlier deadlines and improved submission data to help vet readiness, use the capital development fund for project completion and planning grants, and expand special grant programs for priority infrastructure areas (water, local roads, trails). They also proposed deeper analysis of existing targeted programs such as the Transportation Project Fund and the Water Trust Board allocations.

Committee members suggested operational changes: require legislators to register and lock in their districts’ capital commitments earlier (an interactive spreadsheet was used this year but not uniformly completed), prioritize funding for projects that include planning and design, consider minimum funding thresholds to enable bidding, and explore having state agencies or tribal entities act as fiduciary or delivery partners for certain project types to speed execution.

Staff said they will prepare additional interim work — including district‑level sponsor reports and deeper analysis of special grant programs and capacity building efforts — and asked for committee direction to develop statutory or procedural options. Members discussed using legislative council to codify reauthorization limits and other process rules so local applicants and lawmakers have a transparent set of expectations going into the session.

The briefing underscored the tension legislators described throughout the hearing: local officials and communities press for project funding, but limited administrative capacity and partial or piecemeal appropriations often delay or prevent project completion. Analysts said targeted funding for planning, stronger vetting, and capacity building at the local level would likely yield faster completion and fewer reauthorizations.