Senate committee advances DOTD reorganization bills creating Office of Transformation and highway construction entity

The Senate Committee on Transportation advanced a package of bills on June 4, 2025 that would reorganize the Louisiana Department of Transportation and Development and create new offices intended to speed project delivery and increase transparency.

Representative Ryan Borak, the bill sponsor on the first of the package, told the committee the effort began in January and grew from oversight hearings, an executive order from the governor and a Boston Consulting Group review. "House Bill 556 establishes the office of transformation. It also provides for a deputy secretary position and an assistant secretary for project delivery," Borak said during his presentation. He said the package also adjusts the highway priority program process and aims to improve communications with the Louisiana Department of Economic Development and the public.

The committee adopted several amendment sets during the hearing. Borak summarized the largest amendment set as 35 changes; he said 17 were technical, 10 addressed overlaps between the assistant secretary and the chief engineer, amendment 21 added a regional economic development duty tied to workforce development, and amendment 34 raised a liquidated-damages rate for utility relocation from 0.05% to 0.15%.

Retired DOTD employee David Miller testified during the public-comment period and warned about increased outsourcing under the proposed structure. "The cost for the outsourcing of the grass cutting is between 40 to 80% more than what the in house costs are," Miller said. He and others said substantial portions of DOTD work are already contracted out—Miller estimated "probably 70% of the pre design" and large shares of maintenance tasks—and cautioned additional outsourcing could reduce services without more funding. Miller also cited a departmental figure he said shows DOTD spends about $22 in pre-construction activity to achieve $100 in construction.

Committee members asked how the bills would change hiring and reporting. Senator Michael Price questioned whether the governor made appointments to the assistant-secretary post; Borak said the assistant secretary and deputy secretary would be appointed "as he does with other executive level positions" and that those appointees would serve at the pleasure of the governor. Price also clarified that civil service references were removed from the bills; Borak said the legislation would not change civil service law.

House Bill 528, a companion measure, includes key performance indicators for DOTD, duties for the Office of Transformation and had language about the Transportation Trust Fund removed after fiscal and federal concerns. House Bill 640 would create an Office of Louisiana Highway Construction intended to focus on non-federal-aid highways and allow cooperative endeavor agreements, cost-share partnerships and some public-private partnership tools. Borak and other witnesses said the office would be housed in the Division of Administration and the executive director would serve at the pleasure of the governor.

Borak and Department of Transportation Secretary Joe Donahue told the committee the department is already implementing many of the measures being codified and that an interactive public dashboard (an "interactive map") remains part of the plan. Borak noted the legislature previously provided districts with funding for equipment and materials and cited a recent legislative allocation of about $63,000,000 to each of DOTD's nine districts as an example of concurrent investment in operations.

Committee action: The panel adopted amendment sets and advanced the bills by voice vote or by motion without recorded roll call. A motion by Senator Patrick Abraham reported House Bill 556 as amended; Senator Mike Price moved to report House Bill 528 as amended; and a motion by Senator Abraham reported House Bill 640 favorably. A companion House Concurrent Resolution 45 directing further study of district makeup and rural infrastructure coordination was adopted without objection.

The bills now move to the Senate calendar for further consideration.

Ending: Supporters said the measures are intended to improve project delivery and transparency; critics and some speakers cautioned that increased outsourcing could raise costs and reduce in‑house capacity if additional funding is not provided.