NDOT briefs senators on vacancies, rising construction costs and project timelines

Tracy Larkin Thomason, director of the Nevada Department of Transportation, told the Senate Committee on Growth and Infrastructure on March 1, 2025, that NDOT has reduced staff vacancies since pay raises but is confronting steep construction cost increases, supply‑chain pressures and some uncertainty about timing for federal grant reimbursement.

Larkin Thomason said NDOT’s vacancy rate dropped from about 26 percent to 14.7 percent following recent raises and recruitment efforts. “We are down to 14.7%,” she said, noting rural maintenance stations have seen improved staffing but that engineering positions remain a recruitment challenge.

Scope, funding and cost pressures NDOT said it maintains roughly 5,400 center lane miles and more than 1,200 bridges, employs about 1,900 people and manages an annual program that usually ranges from about $800 million to $1.2 billion, depending on grants and reimbursements. The department highlighted that state and federal fuel taxes are flat cents‑per‑gallon amounts (the presentation cited the state tax at 18.455¢ per gallon and the federal tax at 18.4¢ per gallon), so revenue does not increase automatically with rising pump prices.

On construction costs, Larkin Thomason and staff said material prices (asphalt, concrete, steel) and labor increases contributed to large cost growth for projects in recent years; NDOT reported a multi‑year period of high inflation that pushed bid prices substantially higher. They also cited rising ancillary costs — theft and right‑of‑way cleanup, environmental compliance and other items — that now add millions to annual program costs.

Federal funding timing and program impacts Larkin Thomason warned that a recent executive order has prompted reviews of federal grant funds and that unobligated or newly awarded federal grants may face additional review or timing uncertainty. “Any federal fund is a reimbursement program. We expend state dollars first, then submit an invoice and get reimbursed,” she said, adding those timing questions can affect project cash flow and sequencing.

Project updates and planning - Tropicana/I‑15 (Southern Nevada): Larkin Thomason said the project is on track for substantial completion in August and final completion by September (year not explicitly restated; presenters referred to the current construction season). - US‑395 north valley widening (Northern Nevada): Phase 1B is scheduled for completion next year and a Phase 2 has a large federal grant component (about $87–89 million cited). NDOT said it may pause awarding a notice to proceed for Phase 2 while monitoring grant timing. - I‑80 widening (northern corridor): NDOT said the project’s estimated cost has grown (presenters referenced an approximate $500–600 million cost and about $275 million in federal funding). The department said phasing smaller construction segments may be necessary to manage cash flow and grant timing.

Long‑term need and risks NDOT presented a 10‑year need estimate ranging from roughly $15.9 billion to $20 billion (using a 4 percent inflation assumption for the period) and said the agency expects an ongoing annual shortfall in preservation and betterment projects absent new revenue. The director cited industry supply‑chain issues (including chips and imported components for intelligent transportation systems), possible tariffs and skilled‑labor shortages as factors that increase program risk.

Senators asked about specific stalled contractor work, Freedom‑of‑Information request processing times, and the fiber‑optic contract dispute in Elko (a litigation matter); NDOT said litigation and pending legal reviews limit public comment on active cases and that record requests sometimes require review and redaction through the Attorney General’s office.

NDOT asked legislators to note that deferred maintenance leads to steeper costs over time: Larkin Thomason said the cost to restore a roadway increases multiple‑fold once a wearing surface has deteriorated past a tipping point and urged preventive preservation to avoid much larger repair bills later.