JFAC hears ITD plea for more reappropriation authority and supplemental cash to pay ongoing road contracts

Idaho Transportation Department officials told the Joint Finance‑Appropriations Committee on an oversight hearing that the department is facing a shortfall in spending authority needed to complete multi‑year construction contracts and asked the committee for supplemental funds, expanded reappropriation authority and changes to appropriation language.

The request includes a $60 million supplemental for fiscal year 2025 (a $10 million State Highway Local Fund component and $50 million from the State Highway Federal Fund), two ongoing capital outlay requests tied to newly available federal IIJA funds ($57.3 million and $55.0 million), and proposed one‑time general fund cash transfers of $99.7 million for safety and capacity projects and $212.0 million for road and bridge maintenance. ITD also requested removal of a legislative appropriation that would restore continuous appropriation treatment for the Strategic Initiatives Program Fund so prior‑year balances could be spent on construction projects.

Why it matters: ITD said a large share of its current construction work is multi‑year and funded from multiple sources (federal, state, local and strategic initiatives). The department told the committee that although cash may be on hand, annual appropriation limits and a $250 million reappropriation cap can leave ITD without the formal spending authority needed to pay contractors as projects advance.

ITD chief administrative officer Dave Tolman told the committee: “As of the end of FY24, our obligated unspent construction program was a little over $600,000,000 across multiple funding sources.” He said that mismatch—projects under contract versus available appropriation—creates the current cash‑flow pressure.

Brooke Dupree, the Legislative Services Office analyst, summarized the department’s presentation and the specific line items in the FY26 enhancement packet, including replacement equipment and IT‑recommended purchases. Dupree told the committee the department has previously received large one‑time transfers to the Strategic Initiatives Program and noted that historically 60% of such transfers have been used by ITD while 40% have gone to local units of government.

Committee members pressed ITD about the cause of the shortfall and whether it reflected cost overruns or timing. Director Scott Stokes and his staff said it is largely a timing and appropriation‑authority problem: many large projects are contracted across multiple fiscal years, producing a “wave” of contractor payments that can exceed that year’s appropriation even though funds were appropriated or transferred in prior years. Stokes said IIJA (the federal infrastructure law) increased federal fund availability and the department is seeking to make that federal level an ongoing part of its budget.

ITD asked the committee to consider three related fixes: (1) a one‑time supplemental to cover contractor payments this fiscal year; (2) an increase or removal of the $250 million reappropriation cap so obligated, in‑progress projects can be paid in subsequent years without artificial limits; and (3) statutory language to allow use of remaining state highway fund balances for construction projects.

Committee members requested follow‑up details, including current unobligated balances by dedicated fund and status reports on major projects. ITD agreed to provide additional cash‑balance and project‑status information to the committee.

Ending: The hearing closed with the committee asking staff and ITD to supply more detailed cash‑balance and contract‑status reports to inform any decision on reappropriation limits, supplemental requests and proposed language changes.