Agency of Transportation outlines $61.5 million FY26 gap, proposes using JTOC appropriation and project delays

Candace Santos, chief financial officer of the Agency of Transportation, told the House Transportation Committee on Feb. 4 that the agency faces about a $61.5 million gap in its Transportation Fund going into fiscal 2026 and outlined how the administration proposes to close it.

The shortfall combines a set of one‑time revenues that are not available in FY26 with recurring cost pressures. To close the gap the administration proposed using the JTOC appropriation (an amount historically paid from the Transportation Fund to the state police), a one‑time $12.5 million transfer from the cash fund, roughly $14 million in internal reductions and $4.5 million in anticipated reversions at year end.

Santos said the Transportation Fund operating statement showed three one‑time items that created a starting "hole" of about $46 million: an FHWA administrative reimbursement estimate that has changed since last session, $12.5 million in required reversions identified at prior closeout, and a roughly $25 million transfer from the capital/cash fund that supported the FY25 budget. She said the FHWA reimbursement estimate dropped from $8.5 million to $6.3 million after negotiations, costing the agency about $2.3 million in the current year.

The nut of the agency proposal for FY26, Santos…