House panel reviews proposed substitute for transportation budget, notes project delays and $1.2 billion reserves

House staff presented the proposed substitute for House Bill 1227 on March 25, outlining appropriations and programmatic priorities for the 2025–27 biennium and related supplemental adjustments.

“New biennial budget proposal here for the two years includes a total of $15,000,000,000 in appropriations to transportation agencies,” Amy Skay, fiscal staff, told the committee. She said about $9 billion is for the capital program, $6 billion for operating programs and $1.8 billion for debt service and issuance costs. Skay said the capital list largely continues prior projects but that the package includes program reductions and schedule shifts to balance available resources.

Skay said the chair’s budget relies on new revenue that would be generated by the substitute for House Bill 2043, and that the overall six‑year plan retains $1.2 billion in reserves. She described reductions of about $1.3 billion in state funding for state projects and about $488 million in state funding for local projects compared with earlier plans, with many projects moved past the six‑year horizon to maintain fiscal balance.

The substitute increases…