Lawmakers and transportation stakeholders spar over proposal to guarantee 70% of district highway revenue remain local

Sen. John Frederickson told the Transportation and Telecommunications Committee that LB 449 would change how Nebraska Department of Transportation (NDOT) dollars are allocated by guaranteeing that no less than 70% of highway revenue raised in each state highway district be spent on projects within that district.

“LB 449 makes a simple but impactful change to the way funds are allocated to projects through the Nebraska Department of Transportation,” Frederickson said. He argued the Omaha metro (NDOT District 2) contributes a disproportionate share of highway revenue — he said the district contributes “around 40%” of certain trust-fund revenues but historically receives about 10–13% back — and that a 70% floor would return more revenue to fast-growing urban districts for congestion, safety and major projects such as the East Beltway.

Supporters — including the city engineer for Omaha, several chambers of commerce, and local elected officials and county commissioners — told the committee District 2 has high traffic counts, growing preservation and expansion needs, and local investments that would leverage state funds. Austin Rouser, Omaha’s city…