Senate Transportation reviews FY25–FY26 budget; members flag $4.5M estimated reversions and central garage spending

Senate Transportation committee members and agency and fiscal staff spent the meeting reviewing FY25 and FY26 transportation appropriations, highlighting an estimated $4.5 million in reversions the Agency of Transportation (AOT) expects to make in FY26 and asking for clearer reporting when the agency shifts money between appropriations.

The session reviewed two budget spreadsheets: a line-by-line FY25 vs. FY26 appropriations comparison and a FY26 “by fund” breakout showing how project, maintenance and internal service accounts are funded. Committee staff said the B309 program development and facilities appropriation is about $411,000,000 in FY26 (roughly $308,000,000 federal, about $62,000,000 from the state transportation fund, plus smaller amounts from TIFs), maintenance (B905) is roughly $117,000,000 with about $110,000,000 from the T fund, and AOT-wide programs total about $883,000,000 with $331,700,000 from the T fund and roughly $452,000,000 federal.

Committee members and staff also discussed the central garage internal service fund. A detailed breakdown in the packet shows the central garage appropriation as approximately $25,654,000 for FY26 (about $6,000,000 personnel, $19,600,000 operating, of which roughly $9,000,000 is equipment and $3,400,000 other operating). The committee noted last year’s T bill (section 40) authorized using up to $2,000,000 of central garage reserve funds to purchase about 23.5 acres on Paine Turnpike in Berlin and allowed use of reserves for design services, with the secretary required to collaborate with the municipality on design and construction.

Members flagged several one‑time and transfer items that changed between the governor’s recommendation and the House: the governor proposed transferring $2,300,000 from the T fund into a TIF fund to smooth FY25–FY26 cash flow; the House reduced that transfer to $900,000 and redirected the $1,400,000 difference to the Agency of Commerce and Community Development (ACCD) for EV charging infrastructure (EVSE). The House also added a $1,000,000 general‑fund item tied to the mileage‑based user fee effort; committee staff noted the agency already has about $700,000 carried forward from prior appropriations set aside for federal match related to mileage‑based user fee testing.

On reversions and revenue, staff explained that AOT is budgeting an estimated $4.5 million in reversions for FY26 (money the agency expects to return to the T fund when projects are not completed in the fiscal year). The committee was told the agency currently projects an ending FY25 T fund balance of about $713,000 (including an anticipated $1,000,000 in reversions), and that current revenues are running below the forecast by roughly $1.8–$2.0 million. Committee members repeatedly asked how the agency will balance the budget if revenues remain weak, noting pressure on maintenance accounts and limited state‑fund flexibility.

Several legislators and staff raised concerns that the agency sometimes moves money between central garage, building and maintenance appropriations without notifying the committee in advance. Committee members asked for clearer interim reporting and statutory guidance on what the agency must report when it transfers or reassigns appropriations. In response, staff said they would prepare a summary of statutes and reporting requirements related to T fund shortfalls, transfers between appropriations, and project pauses tied to missing federal funding.

On contract and transfer details, staff cited the IIJA match funds and other small transfers into the T fund (including a prior $12.5 million IIJA match set aside and about $140,000 from voter registration fees). The Joint Transportation Oversight Committee (JTOC) appropriation is listed at $0 in the packet; the pay‑act appropriation and some smaller appropriations for visitor information centers (paid from the T fund and administered by BGS in part) were also noted.

Committee direction and next steps: staff agreed to pull statutory citations (including the Title 19/19 VSA references cited in the packet), provide a short memo on where central garage reserve and project funds are recorded in the AOT budget, and return to the committee with options for improved reporting and oversight of midyear transfers and reversions.

“’This is Senate Transportation. We are here …’” was a throughline early in the meeting as staff walked members through the two comparison spreadsheets and the by‑fund breakout, and members closed the session by requesting a short, statute‑based summary and follow‑up presentations from agency staff.

The committee did not take a formal vote during this discussion; members repeatedly asked agency staff to return with more detailed documentation and clearer interim reporting procedures so legislators can monitor reversions, revenue trends and project reallocations outside of session.