NDOT urges steady funding to finish Highway 85 work, address local bridge backlog

Director Ron Henke of the North Dakota Department of Transportation told the Senate Appropriations Committee that the department needs steady, predictable funding to finish major projects on Highway 85, support local bridge replacements and sustain daily operations such as snow and ice control.

Henke said the department has used a new flex fund and several one‑time appropriations to accelerate projects but that significant gaps remain. “Fifty percent of the motor vehicle excise tax went into that fund. It’s about a $171.5 million,” Henke told the panel. He also said the department received multiple one‑time allocations and legacy earnings, and described those sums in the presentation materials and the packet supplied to senators.

Why it matters: the department framed the request as a combination of long‑run operating needs (fleet, snow and ice control, driver services) and capital shortfalls (local bridges, multi‑lane projects and four‑lane upgrades). Henke said a recent report to legislative management estimated roughly $556 million still needed to complete the remaining Highway 85 improvements; he told senators, “within the report we submitted, it’s about 556.” That shortfall is in addition to earlier grants and the work already under contract.

Most important facts

- Flex fund: Henke said 50% of the motor vehicle excise tax was placed into a flex fund that he estimated at about $171.5 million and is being used for a mix of state, county and city projects.

- Highway 85: Henke said the department has contracts and grants for parts of the corridor, including a $55 million grant covering half of one remaining stretch. The report to legislative management cited roughly $556 million more to finish the project if fully funded.

- Local bridges: the department emphasized a large need on the local system, citing a commonly referenced figure from the Upper Great Plains Transportation Institute that local bridge replacement needs statewide reach into the billions. Henke noted the state inspects bridges of 20 feet in span or greater on a two‑year cycle and that local bridges carry a substantial share of deficiencies.

- Snow and ice control and fleet: Henke said annual snow and ice costs for the operation are roughly $27 million (materials and rental/maintenance) and estimated total seasonal clearing costs of about $50–$60 million. The state fleet manages roughly 35,100 vehicles and sets internal rates quarterly.

- Grants and innovation: Henke listed discretionary federal awards and research grants the department has won, including a $55 million grant for Highway 85, a suite of lower‑carbon materials grants, and project‑specific awards for bridge and corridor work. He said the department applied for about $800 million in discretionary grant opportunities and had been awarded roughly $270 million to date.

Discussion and follow‑up

Senators pressed Henke on multiple points: whether the driver’s license division is subsidized (Henke said renewal fees have not kept pace with operating costs and that the division is likely subsidized), whether the flex fund allocation is ongoing (Henke said the transfer is codified in law and the $171.5 million refills next biennium), and whether federal funds are being left on the table (Henke said NDOT is using all federal dollars it receives). Senators also asked about reusable culvert purchases, bundling bridge projects for cost savings, and contractor workforce capacity.

Henke described past and ongoing steps to reduce costs — bundling bridges in a local area where it produces efficiencies, buying standard boxes in volume when it fits the drainage requirements, and staging bids earlier in the calendar year to secure lower prices from contractors. He said the department has added two staff to work with townships and has expanded engineering work funded from the flex fund to advance design and right‑of‑way purchases.

What the department asked the committee to consider

Henke urged continued use of the flex fund and other stable funding streams. He noted several agency bill proposals intended to modernize administrative processes (for example, allowing online advertising instead of county newspaper legal notices, and adding tribes to a special roads fund), and he requested authority to carry previously appropriated one‑time flex and ARPA allocations into the next biennium so counties and townships with awarded funds can finish design and bid work already in progress.

Ending

Henke closed by urging the committee to consider approaches that create consistent funding over multiple biennia, saying stable appropriations help contractors plan and preserve a local workforce. “If you’re going to go buy a $2 million paver, you don’t want to do it for one project and wonder if there’s another one next year,” he told senators, underscoring the department’s argument that funding predictability reduces construction costs and preserves local capacity.

(Separate items Henke described — specific grant awards, the DOT app, and project maps with the flex fund allocations — are detailed in NDOT’s presentation packet and the department’s online project map; the committee packet contains the department’s PowerPoint slides.)