ITD asks JFAC for broader reappropriation authority and new cash transfers to cover multi‑year construction commitments

At a Joint Finance-Appropriations Committee hearing, the Idaho Transportation Department asked legislators for expanded spending authority and several cash transfers to cover contractor payments on projects already under contract.

Department staff told the committee that a wave of multi‑year projects has created a situation where available cash and prior-year balances exist but the department lacks the annual appropriation and reappropriation authority to make contractor payments. ITD requested a $60 million supplemental for the current year, ongoing federal‑funded capital authority increases (including $57,276,000 and $55,000,000 requests tied to IIJA/ federal funding), and two one‑time general fund cash transfers under consideration: $99,704,000 for safety and capacity projects and $212,000,000 for road and bridge maintenance. The department also requested reappropriation authority up to $250,000,000 and asked that the Strategic Initiatives Program fund be left continuously appropriated in code so funds would be accessible for multi‑year projects.

Brooke Dupree, budget and policy analyst with the Legislative Services Office, summarized ITD’s request and explained that the department expects more federal funds to be available for construction and metropolitan planning and is seeking appropriations to reimburse local jurisdictions when they submit eligible projects. Dave Tolman, ITD chief administrative officer, told the committee that "as of the end of FY 24, our obligated unspent construction program was a little over $600,000,000 across multiple funding sources," and that the department’s current appropriations do not match the amount of construction dollars under contract.

Committee members asked about cash balances, monthly contractor payment levels and the effect of prior decisions to cap carryover and reappropriation. Director Scott Stokes and other ITD officials described a pattern of larger, multi‑year projects and multi‑source funding (federal, state, local and Strategic Initiatives Program funds) that creates concentrated payout periods; Stokes said monthly contractor payments during the construction season "could be between $50 and $80 million a month." ITD argued that continuous appropriation of the Strategic Initiatives Program fund, or higher reappropriation caps, would reduce the risk of delayed contractor payments and emergency cash‑flow measures.

The committee also heard an explanation of GARVEE (grant anticipation bonds) and TECM (Transportation Expansion and Congestion Mitigation) funding streams and how sales tax distributions and earlier general fund transfers have been used to pay debt service and local matches. ITD staff said GARVEE bonds carry an average weighted interest rate of about 3.4% and are scheduled to be paid off in future years per the department’s materials.

No formal votes were taken at the hearing. Committee members asked ITD to provide more detailed accounting of current obligated balances and to return with clearer estimates of how proposed appropriations and reappropriation limits would affect contractor payments and project delivery schedules.

ITD staff said they will provide project‑level status updates and cash‑balance detail on request so the committee can evaluate whether to raise the reappropriation cap or use one‑time transfers.