DOTD outlines $778.6 million FY26 plan and $18.9 billion estimated highway and bridge backlog

The Department of Transportation and Development briefed the House Appropriations Committee on its FY26 executive budget recommendation and a strategic improvement plan aimed at improving project delivery and transparency.

House Fiscal Division presenter Claire Vermallen summarized DOTD’s FY26 operating recommendation at $778.6 million, with statutory dedications accounting for about $620.2 million (roughly 80% of the total) and a state general fund component of approximately $53.4 million. Vermallen said the Transportation Trust Fund regular — the 16¢ per gallon state fuel tax — and federal fuel taxes are primary funding sources. DOTD reported 4,319 authorized positions and 148 vacancies as of Dec. 30, 2024.

Secretary Shawn Donahue described an internal strategic improvement plan developed after outside consultant review and an executive order; the plan emphasizes transparency, predictable project delivery, and operational reforms. He noted recent project wins, including the Calcasieu River bridge transaction structured as a public–private partnership that earned industry awards and bond‑market recognition.

DOTD staff outlined significant line‑items: a $65 million increase in vehicle and equipment replacement, the removal of one‑time FY25 acquisition/repair funding (a roughly $92.1 million decrease) and a $18.3 million increase in personnel services to address classified employee pay. The department said average salaries remain below statewide averages by approximately $5,500 and that turnover is below the statewide average for FY24.

Lawmakers pressed DOTD on the state highway and bridge backlog, which DOTD estimated at about $18.9 billion (2022 estimate) and said recent inflation and construction‑cost escalation have accelerated backlog growth. DOTD cautioned the 2022 backlog number is calculated under a specific methodology and that the 2023 calculation may differ slightly. The department said the backlog figure does not always capture pre‑construction design costs and that actual needs may be higher when such costs are included.

Questions focused on major projects and delivery timelines. Members asked about I‑10/I‑12 projects and a college flyover that has accrued liquidated damages for missed contractual completion dates; DOTD said the flyover is a design‑build contract currently accruing penalties for each day beyond the contractual deadline and that other segments of the I‑10 program are proceeding under a construction manager–at‑risk (CMAR) delivery with staged design and construction.

DOTD described August redistribution — the Federal Highway Administration practice of reallocating unused federal obligation authority to states prepared to obligate additional funds — and said Louisiana has received substantial August redistributions in past years (including about $104 million in FY24). Secretary Donahue and deputies said they are working to ensure project readiness to take advantage of such redistributions.

On local funding, DOTD described the Parish Transportation Fund (PTF) recommendation at $46.4 million for FY26 (parish roads, mass transit, off‑system bridge match). The department reiterated the road transfer program as a tool to move low‑priority state road mileage to local jurisdictions, while offering parish incentives and local match mechanisms.

Lawmakers and DOTD staff highlighted the importance of district offices, requested continuing outreach to parishes, and emphasized the need for long‑term strategies to reduce the backlog. DOTD said it is on track to obligate or contract a slate of preservation projects funded by recent legislative appropriations and urged legislative partners to continue support for capital and programmatic investments.