ITD Seeks Reappropriation Authority and One‑time Transfers to Cover Ongoing Multi‑year Construction Payments

Lawmakers heard detailed testimony that Idaho Transportation Department construction work is increasingly multi‑year and multi‑funded, producing large contractor payout waves that can exceed the department’s current appropriation and reappropriation limits.

Brooke Dupree, budget analyst for the Legislative Services Office, summarized the construction and right‑of‑way budget: estimated expenditures in the division have ranged from about $770 million to $1.4 billion in recent years and ITD has used reappropriation authority to handle multi‑year payouts. The department requested a $60,000,000 supplemental for FY25 (split as $10,000,000 State Highway Local Fund and $50,000,000 State Highway Federal Fund) representing excess receipts above appropriation that will likely be eligible for reimbursement on current contracts.

For FY26 ITD requested ongoing capital outlay increases tied to higher federal receipts under the federal infrastructure act (IIJA): $57,276,000 for construction projects and another ongoing request of $55,000,000 (50,000,000 federal + 5,000,000 local). The department also requested one‑time general fund cash transfers of $99,704,000 for safety and capacity projects and $212,000,000 for road and bridge maintenance; Dupree stated historical practice splits such transfers with 60% to ITD and 40% to local governments when routed through the Strategic Initiatives Program Fund.

ITD officials explained they are constrained by a $250,000,000 reappropriation cap and that contracted, obligated but unspent construction dollars totaled "a little over $600,000,000" as of the end of FY24, creating risk that the department will lack spending authority to meet contractor payments. Chief Administrative Officer Dave Tolman told the committee those committed, multi‑year contract amounts exceed current appropriations and cited the statutory continuous appropriation of the Strategic Initiatives Program Fund as a potential solution: ITD requested language enabling the fund's continuous appropriation to be used without an additional annual appropriation, which department staff said would free funds already authorized and reduce pressures on the annual appropriation cap.

Committee members described monthly contractor payments in the summer construction season can reach $50–$80 million and expressed concern that the current $250 million reappropriation limit and the structure of annual appropriations risk pushing ITD into payment timing problems even when cash balances exist. Several members asked whether raising the reappropriation cap would be appropriate and sought follow‑up on balances in the State Highway Fund and how much of the requested one‑time transfers are needed to service current contracts versus fund new projects.

ITD said many large bonded projects are multi‑funded and multi‑year (one example cited was a roughly $130 million interchange project), which drives the timing mismatch between cash on hand and spending authority. The committee did not take immediate action on the requests; members asked ITD and Legislative Services staff for additional cash‑balance detail and project status before any final appropriation decisions.