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ITD warns $600M in contracted work strains current appropriation limits; asks for reappropriation and continuous appropriation language
Summary
ITD told JFAC it faces cash‑authority limits as multi‑year, multi‑fund construction projects reach payout phases. The department requested supplemental spending authority and changes to reappropriation language to avoid delayed contractor payments.
The Idaho Transportation Department told the Joint Finance‑Appropriations Committee that its multi‑year construction portfolio has created a spending authority crunch: projects under contract are entering payout phases faster than the department’s current appropriation structure allows.
Budget staff said ITD expects a $60 million supplemental in FY25 (about $50 million from the State Highway Federal Fund and $10 million from the State Highway Local Fund) to cover excess federal‑eligible reimbursements. For FY26 the department asked for ongoing capital outlay tied to increased federal receipts — including $57,276,000 to reflect higher IIJA (Infrastructure Investment and Jobs Act) funding levels — and an additional $55,000,000 (50M federal, 5M local) to provide appropriation authority for federal‑eligible projects beyond current caps.
ITD also requested a one‑time general fund cash transfer of $99,704,000 for safety and capacity projects (historically appropriated with 60% to ITD and 40% to local governments) and a $212,000,000 general fund transfer request for road and bridge maintenance with a similar ITD/local split.
The department asked that the Strategic Initiatives Program Fund remain continuously appropriated (rather than the committee setting a single‑year appropriation that effectively limits access to prior‑year balances). Brooke Dupree described the alternative as requiring a dedicated fund appropriation to spend any transferred cash; the department said leaving continuous appropriation intact would remove that extra step.
Dave Tolman, ITD chief administrative officer, told the committee: “As of the end of FY 24, our obligated unspent construction program was a little over $600,000,000 across multiple funding sources.” Director Scott Stokes and staff said monthly contractor payments in the summer construction season can range from $50 million to $80 million, and warned that the department had, in a previous fiscal year, delayed some contractor payments to keep cash flow within spending authority limits.
Committee members asked for further detail on cash balances by fund and on the planned timetable for projects; staff said they would follow up. The governor recommended many of the enhancements but proposed no $250 million reappropriation cap (the committee’s prior cap). No committee vote occurred at the hearing.
