Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Transportation Funding topic
No spam. Unsubscribe anytime.
JBC orders partial clawback from multimodal options fund, shifts $71.4 million into general fund for budget balancing
Summary
Following staff recommendations and department explanation, the committee approved transfer of $71.4 million from the Multimodal Options Fund (MMOF) into the general fund, including a decision to withhold uncontracted ARPA‑originated amounts; the committee also suspended future MMOF transfers tied to the 2021 statute in some cases.
The Joint Budget Committee approved a staff recommendation to transfer $71.4 million from the Multimodal Options Fund (MMOF) to the general fund as part of budget balancing. JBC staff explained the MMOF currently held awards and allocations, but a large portion—about $75 million—remained uncontracted and therefore not yet disbursed to local projects.
Committee staff proposed clawing back $7 million of MMOF amounts that were refinanced ARPA dollars and an additional larger amount made available by pausing or reprioritizing uncontracted awards. During discussion lawmakers expressed concern about the local projects that had been “awarded” money but had not yet executed contracts—committee staff confirmed that, per DOT, no shovel‑in‑the‑ground activity had begun if a state contract had not been signed, and those projects would remain eligible for award when MMOF or other funds were later available.
After debate, the committee approved a motion to transfer $71.4 million from MMOF into the general fund and instructed staff that the transferred amounts be captured in the larger package of transfers and budget bills. Committee members also directed that a portion of MMOF that had been intended for Bustang (state intercity transit) be preserved in the transfer decisions; the committee specified that roughly $3.6 million reserved for Bustang operations be maintained rather than swept.
Why it matters: The committee’s decision frees sizable one‑time resources to help close the current budget gap, but it delays or reduces funds available for local multimodal grant projects. DOT staff said awarded projects would remain in a pipeline and would be among the first funded if MMOF balances grew again.
Next steps: JBC staff will record the $71.4 million transfer in the omnibus transfer package and coordinate with DOT on the list of projects at risk and timing. Committee members asked for follow‑up information about which local projects were awarded but uncontracted and whether any local match or pre‑spending had begun.
Ending: Committee approved the transfer 6–0 and directed staff to include the transfer in the long‑bill package; DOT and JBC staff to provide details on project status and pipeline.
