Colorado transportation planners and regional partners were told this month that the legislature moved cash from several transportation programs into the general fund, reducing the money available for projects funded through the Multimodal Options Fund (MMOF) and other CDOT accounts and forcing TPRs and MPOs to rework awards and schedules.

Emily, staff member, summarized legislative action in a presentation, saying, “This is the bill that reduced the funding to the 10 year plan … swept the $71,800,000, of funding from the multimodal options fund.” CDOT program staff later described the immediate operational impact: “a reduction of existing funds in the amount of $71,400,000, from the local MMOF fund balance,” Michael, staff member, said during a subsequent MMOF briefing.

Why it matters: the cuts reduced or eliminated MMOF allocations that regional transportation planning organizations (TPRs) and metropolitan planning organizations (MPOs) had already budgeted or awarded to projects. Many local agencies had awards or planned schedules that now exceed the reduced allocations; CDOT told the group that TPRs and MPOs are the awarding bodies and must lead the work to bring their programs back into budget constraint while CDOT will provide data, tools and technical support.

What CDOT told regions
- CDOT will provide detailed project-level information (contract status, expenditures, implementation schedules) to help regions make reprogramming decisions.
- CDOT said it will implement a cash-management approach that can, in some cases, advance up to two years of future MMOF commitments to allow projects that are ready to proceed to keep moving. Michael said CDOT is “confident we can support all the projects that are in this position,” meaning projects already slated to advertise or begin construction this season, but cautioned capacity to advance funds will vary by year.
- The department will issue written guidance and an FAQ packet for local agencies; Michael said a guidance document would be distributed to TPRs and MPOs later the same day.

What regions must do
- TPRs and MPOs remain the awarding authority; CDOT staff emphasized that local bodies should lead a transparent process with affected local agencies when adjusting awards.
- Where possible, CDOT advised prioritizing adjustments to amounts that are not yet encumbered or under notice to proceed to minimize contractual changes. CDOT staff also recommended avoiding piecemeal, partial reductions that leave projects underfunded; when reductions are required, full cancellations or re-awarding decisions may be clearer and less risky contractually.

Funding context explained at the meeting
- Emily and CDOT staff reviewed multiple bills and budget moves. Among the items discussed were temporary reductions to the road safety surcharge (a $3.70-per-class reduction noted in the legislative summary) and other transfers that contributed to sizeable revenue losses to transportation programs. Emily summarized that the combination of bills reduced planned transfers to the 10-year plan and moved several cash funds into the general fund.
- Another bill that gained support accelerated planned increases to the bridge and tunnel impact fee schedule, bringing a planned future increase forward and generating roughly $28 million to the bridge and tunnel enterprise over the next three years, Emily said.

Local reaction and next steps
- Several TPR members asked how to limit impacts to projects already in contract or in active implementation. Michael and CDOT staff said projects already scheduled to advertise or receive notice to proceed this season will be prioritized for advances using future-year MMOF commitments where feasible. CDOT warned the amount it can advance depends on unencumbered balances in future fiscal years.
- CDOT staff urged regions to conduct cooperative, defensible decision processes if reductions are necessary. “When your award decisions are made in a competitive manner … that is a defensible process that also supports you when you then have to suddenly pull back on them,” Michael said.

What was not decided
- No formal reallocations or cancellations were approved at the meeting. The meeting produced instructions and a path forward: TPRs and MPOs will review their awarded portfolios, consult with affected local agencies, and submit proposed adjustments; CDOT will provide the project-level data and a guidance document to support those decisions.

Looking ahead
- CDOT and regional partners noted that spending or fully committing available balances reduces the state's unspent fund balances and can reduce the likelihood of future legislative sweeps. Several participants urged faster project delivery where feasible to demonstrate need and use of funds.

Ending note: CDOT said it will distribute formal guidance and FAQs and continue to meet with TPRs and MPOs as they develop reprogramming recommendations. Regions were told to prioritize transparent, collaborative adjustments that reduce contractual risk and to coordinate with CDOT staff on any projects that already have encumbrances or notices to proceed.