N.D. DOT asks for state matches for federal grants, cites bridge backlog and safety gains

Ron Henke, director of the Department of Transportation, told the Appropriations Committee the department needs state match money for federal discretionary grants and outlined growing costs for construction, fleet and maintenance.

Henke said the DOT is seeking state match dollars to leverage federal awards — including a $55 million federal grant for a four‑lane stretch of Highway 85 — and that the department is asking the Legislature to authorize borrowing and matching funds to move projects into construction. He also described a growing repair and replacement backlog across bridges, buildings and equipment and said recent safety programs are producing fewer fatalities.

Henke opened by thanking the committee for past transportation funding and said the DOT is shifting emphasis from only state highways to building connected corridors that include county and city roads so local traffic can feed higher‑capacity routes. "We are working hard to get build corridors, not just state highways," Henke said.

The DOT overview packaged several specific requests and program notes: the flexible transportation fund created last biennium (about $222.5 million total) has allowed more local projects; the agency says it has been awarded roughly $236 million in discretionary federal grants and has applied for many more; for one major Highway 85 corridor the department received $55 million in federal funds that require an equal state match; and the DOT has requested $85 million in the executive recommendation to match discretionary grants and a $55 million loan authority from the Bank of North Dakota to provide required grant matches. Henke said the agency also asked for $171.3 million to match federal formula dollars in the next biennium.

Henke gave data points for DOT operations: the state fleet is roughly 3,500 vehicles managed by the department; the DOT manages more than 4,800 state bridges and inspects all federally reportable bridges on a two‑year cycle (the DOT inspects some bridges in‑house and uses consultants for the remainder); snow and ice control runs about $27–30 million per year in a typical heavy maintenance cycle; and Vision Zero safety efforts are showing early improvements, with eight fatalities reported as of Feb. 25 versus 10 at the same time last year. "Vision Zero is showing positive results," Henke said.

On maintenance and equipment, Henke said material and labor costs have risen sharply: he said interstate concrete pavement replacement costs rose from about $2.3 million to $3.5 million per mile and lane‑mile paving costs rose as well. He told legislators the DOT experienced bid shortages on multiple projects in the prior season because contractors lacked workforce capacity, and that the overall program has contracted from about $600 million to roughly $400 million now that COVID‑era federal funds are largely expended.

Henke described several safety and innovation efforts, including LED‑ringed solar stop signs and ‘‘reduced conflict’’ intersections installed near Williston. He said the department has a rail loan program for short‑line carriers, operates state drone and aerial photographic capability, runs the driver licensing system and added extended service hours in major communities. He also said some planned electric vehicle charging projects that had federal support were pulled back by changes at the federal agency, leaving a stronger role for private sector charging deployment for now.

Committee members pressed Henke on specific items. Representative Munson asked whether LED stop signs are solar; Henke replied they are and said the department places them selectively. Representative Nelson asked where the reduced‑conflict intersections in the Williston area are; Henke said three were installed on Highway 1804 near Trenton. On bridges, Representative Nathie asked how many of the roughly 4,800 bridges need repair; Henke said he did not have a final tally ready at the hearing and offered to provide the numbers to the committee later. On a bill to allow 80 mph interstate limits, Henke said the legislation explicitly allows the director to designate lower speeds for substandard segments and mentioned Valley City, Mandan/Bismarck and Fargo as locations that would remain below 80 for geometric or congestion reasons.

Henke described the flexible transportation fund distribution formula, said about 84 percent of the fund dollars awarded in the last cycle went to local projects, and showed an online project map the DOT uses to publish awards. He also noted federal grant programs often require a state or local match, so the state match request is the mechanism the DOT is using to convert discretionary award offers into construction contracts.

Henke said priorities for the DOT budget include funding to match federal grants, carryover authority for projects not yet completed, facility repairs and replacement of aging maintenance buildings and equipment. He warned that flat revenue and rising construction costs mean the DOT will need to prioritize projects and that decisions to move large state funds into one corridor can reduce funding available elsewhere.

Looking ahead, Henke said the DOT will present more detailed explanations to the committee’s government operations and division hearings on fleet rates, operations and specific capital requests. "We're better off to explain [fleet rates] in those division meetings," Henke said. The department also told the committee it will provide the bridge‑condition numbers the legislators requested.

Ending: The committee reserved detailed budget questions for later division meetings; Henke said the DOT will return with division‑level briefings and follow up data (including the bridge condition breakdown and clarifications on match requests) when the committee considers the agency’s budget language and amendments.