ITD asks Legislature for more reappropriation and construction spending authority as multi‑year projects grow

Idaho Transportation Department officials told the Joint Finance-Appropriations Committee that growing multi-year construction projects and multiple funding sources require the Legislature to provide larger reappropriation authority and changes to appropriation language.

Budget analysts told the committee ITD seeks a $60 million supplemental for this fiscal year and ongoing appropriations in FY2026 to reimburse public transit and metropolitan planning projects that are eligible for federal reimbursement. ITD also asked the committee to approve reappropriation authority up to $250 million and to allow the Strategic Initiatives Program fund to be continuously appropriated rather than capped by an annual appropriation.

Chief Administrative Officer Dave Tolman told the committee the department had “a little over $600,000,000” of obligated but unspent construction program dollars at the end of FY2024 across multiple funding sources. He said the department is encountering timing and spending-authority constraints—contractor payments arrive as projects complete but the department may be limited by the year-by-year appropriation cap.

Analysts explained the state’s GARVEE (grant anticipation revenue vehicle) bond program and the Transportation Expansion and Congestion Mitigation (TECM) sales‑tax diversion and noted recent one-time general fund transfers that funded strategic initiatives and local projects. Brooke Dupree, budget and policy analyst with the Legislative Services Office, outlined ITD requests in the FY2026 packet including a $57.276 million ongoing capital request tied to additional federal funds and a $55 million ongoing capital request based on available revenue not previously appropriated because of the $250 million reappropriation cap.

Lawmakers asked whether the requested supplemental was for new projects or for cash flow on already‑contracted projects; ITD answered the supplemental primarily addresses contractor payments for projects already under contract and to avoid delaying payments. Director Scott Stokes and staff said the department routinely delivers projects that span multiple years and funding streams, so continuous appropriation language or larger reappropriation authority would reduce the risk that ITD cannot make scheduled payments to contractors because of year-by-year appropriation limits.

The committee did not take a formal vote during the hearing. ITD and committee staff agreed to provide additional detail on project status and cash balances for the State Highway Fund and related accounts to help the committee evaluate the reappropriation request.