DOTD seeks $778.6M operating budget for FY‑26; committee hears about backlog, district operations and project timing

The Department of Transportation and Development presented its fiscal year 2026 operating budget recommendation — $778.6 million — to the House Appropriations Committee on March 20. The department said statutory dedications account for nearly 80% of the recommended budget, with the Transportation Trust Fund (regular) and federal highway funds the largest sources.

"I'm Claire Vermallen with House Fiscal Division to present the FY26 budget review for the Department of Transportation and Development," Vermallen said as she opened the DOTD briefing.

The DOTD presentation outlined program structure, noting the Operations and Engineering programs account for the majority of personnel and spending. The Operations program — which houses the nine regional district offices and work crews that perform maintenance, traffic signal work and other field tasks — is DOTD’s largest program in dollars and staff. DOTD reported 4,319 authorized positions and 148 vacancies as of Dec. 30, 2024, and said average DOTD salaries are about $5,500 below the statewide average.

Committee members pressed DOTD leaders on an estimated $18.9 billion backlog in state highway and bridge needs (the department said the figure is based on a 2022 estimate and that methodology changes were expected to slightly lower the 2023 estimate). Secretary Donahue and staff said inflation and increased construction costs have expanded the backlog over time and discussed the department’s strategic effort to improve project delivery and transparency.

Members asked about specific projects and schedules. DOTD officials said some large projects have shifted in scope and schedule during prior administrations and that design, permitting and procurement can stretch timelines. For example, officials said the college flyover portion of the I‑10 project is under a design‑build contract and the contractor is accruing liquidated damages for missing a contractual completion date; officials said other parts of the I‑10/I‑12 program are moving under a construction manager at‑risk approach with phased design and contracting.

The DOTD budget proposal includes statutory dedication items such as Transportation Trust Fund (regular) at roughly $433 million and Transportation Trust Fund (federal) at about $181 million. The department also described the Parish Transportation Fund, which it recommended at $46.4 million for FY‑26 and said funds are distributed to parishes for road maintenance, mass transit, off‑system bridge match and other local transportation needs.

DOTD described technical budget items including an increase in acquisition and equipment replacement funding and a reduction in one‑time project carryover from prior years. The department also noted it has been a major recipient of FHWA August redistribution authority in prior years — in FY‑24 DOTD reported receiving about $104 million in additional federal obligation authority when other states could not use their allotments.

Why it matters: DOTD’s budget and project‑delivery capacity influence statewide mobility, economic development and public safety. Committee members said they want clearer timelines for capital projects and assurances that one‑time appropriations are spent promptly.

DOTD staff emphasized an ongoing strategic improvement plan that includes process reforms, increased transparency and a project‑prioritization framework to better align spending with deliverable projects. No formal votes were taken during the DOTD presentation; staff committed to provide project‑specific follow‑up information requested by members, including updated timelines and status for several high‑priority projects.