ITD tells JFAC it needs reappropriation authority after contracting wave; requests $60M supplemental and $311M in transfers

Note: (final body revised below)

The Idaho Transportation Department told the Joint Finance‑Appropriations Committee that spending authority — not a lack of cash — is creating a shortfall as the agency pays contractors on large, multi‑year projects. ITD requested a $60 million FY2025 supplemental to cover higher-than-appropriated reimbursements, ongoing federal fund appropriations tied to IIJA increases, and two proposed one‑time general‑fund cash transfers totaling about $311.7 million for safety, capacity and maintenance projects.

Brooke Dupree, the Legislative Services Office analyst presenting the Contract Construction and Right‑of‑Way budget, explained the request in detail. The FY2025 supplemental the department seeks includes $10 million from the State Highway Local Fund and $50 million from the State Highway Federal Fund; ITD also requested ongoing capital outlays of $57,276,000 and $55,000,000 segmented by federal and local fund sources tied to IIJA federal increases and estimated available revenue.

Dupree also summarized ITD’s language request: if the Legislature prefers, the Strategic Initiatives Program Fund could remain continuously appropriated under law rather than be capped by a one‑year appropriation, a change the department said would remove the need for a second dedicated‑fund appropriation. Dupree said, “the department is requesting that no appropriation be made to that fund and that it be so that it can be continuously appropriated.”

ITD’s chief administrative officer, Dave Tolman, told the committee that obligated but unspent construction program balances were substantial: “As of the end of FY 24, our obligated unspent construction program was a little over $600,000,000 across multiple funding sources.” Tolman and Director Scott Stokes said the issue is not cash on hand but legal spending authority to make contractor payments across multi‑year projects.

Stokes added that monthly contract payouts during the construction season can be large: “monthly project cash payments in a month could be between 50 and $80,000,000 a month.” Committee members pressed why the current reappropriation cap of $250 million was insufficient and whether a higher cap or different language would be more appropriate.

Dupree outlined two one‑time general‑fund transfer requests in ITD’s FY2026 packet: $99,704,000 for safety and capacity projects (with the historical 60/40 split between ITD and local governments) and $212,000,000 for road and bridge maintenance (with a specified split of $127,308,000 to ITD and $84,872,000 to local units). ITD recommended continuing reappropriation authority up to $250 million but the governor’s package omits that cap and instead recommends no reappropriation limit on the Strategic Initiatives Fund.

Committee members asked for follow‑up materials on outstanding contracts and a clearer, itemized accounting of obligated balances. ITD said it would provide project‑level status and that many large bonded projects are in multi‑year phases and require predictable spending authority to avoid delayed contractor payments.