State says $285 million LTIF package is on track; 38 projects let, $130 million obligated

The House and Senate Transportation committees heard a report from Department of Transportation and Development officials who said the $285,000,000 Legislative Transportation Infrastructure Fund (LTIF) package allocated by the 2024 session is proceeding and that 38 projects have been let so far.

Committee members were told that $130,000,000 of LTIF money has been obligated to date, with additional obligations expected as recently let contracts are executed. "Currently, from the projects that have been led through February, we've obligated, a hundred and $30,000,000 of the LTIF funds," a department official said. He added the number of projects let to date is 38 and that the department expects the remaining projects to be let in the current fiscal year.

The LTIF pool and delivery rhythm The secretary said the LTIF exercise was a targeted effort to identify preservation projects that could be delivered within a year: "...the focus was again limited to preservation projects. What do you need? What can you get out the door over the course of the next fiscal year?" He told members the program emphasized readiness to avoid overprogramming projects that cannot be delivered quickly.

On a slide presented to the committee DOTD staff said quarter-by-quarter delivery showed 9 projects already let in quarter 3, five more expected before the quarter closed and 14 planned for quarter 4. The department said roughly two-thirds of the planned projects have been let and that about 19 projects remained to be let to exhaust the full $285 million package.

Reasons for slippage and routing of funds Committee members pressed DOTD on causes for small schedule slips. Officials identified two primary causes for month-long delays on individual projects: constructability questions raised by bidders that required design fixes, and permitting delays tied to the coastal-use permit system managed by the Department of Environmental Quality (DENR). "...permitting in third parties is always a a big risk out there waiting for other folks to do stuff that can introduce delay into a project," the secretary said.

DOTD also described that some projects receiving LTIF money included other finance sources: federal funds, GO bonds and previously programmed state funds. Deputy Secretary Barry Keeling explained the department operates largely on a reimbursement model for both federal and state trust‑fund receipts: "We have an obligation limit that we can charge against. So we have an expenditure, then the federal government reimburses us. ...we do not get a check with a certain amount of money. So it's all in reimbursement."

Committee numbers and timeline Senator Abraham and other members pressed for exact totals. The department said $130,000,000 of LTIF had been obligated as of the February reporting packet (about 45–46% of the $285 million). The department expects four additional lettings will obligate the remaining LTIF balance. Officials cautioned that contract execution and the normal bidding/award process mean some recently let projects have obligations that are not yet posted in the ledger.

Industry capacity and contractor defaults Members asked whether enough contractors exist to perform the work, and DOTD staff said competition has improved when more work is advertised: "The work is there... both existing contractors that we have are going to staff up and you will have new entrants into the market," the secretary said. He also acknowledged a recent rise in contractor defaults on DOTD jobs and said the department has used bond companies and emergency provisions to finish work when a contractor defaults.

What remains and next steps DOTD said it will provide the committee with updated obligation figures and finer project-level detail. The secretary reiterated that the LTIF effort was designed to be a test of delivery capacity and said the agency is on track to obligate the remaining funds in the fiscal year, subject to the usual design, permitting and contracting risks.

Ending DOTD told legislators the LTIF package is continuing to move, but committee members flagged recurring transparency issues with project lists and asked for more granular periodic reporting on obligations and timing.