NH Department of Transportation presents flat overall budget, shifts funds and unfunds positions to meet targets

Department of Transportation Commissioner Bill Cass and senior DOT finance staff presented the agency’s FY 2026–27 budget to the Finance Division II committee, saying the governor’s recommended total for the agency is roughly unchanged from FY25 but requires internal changes to meet executive branch targets.

Cass told the committee the governor’s recommended budget for the agency is about $795.9 million and is “virtually the same as our FY ’25 adjusted or authorized” level. He said the agency met the statewide budget targets by reallocating existing revenue, unfunding positions and reducing some program activity.

Why it matters: DOT’s overall appropriation appears level, but staff told the committee that making the numbers work required internal reductions that affect operations and program delivery, particularly in operating divisions. That means staffing and service choices rather than a large new revenue stream will determine what the department can deliver.

Most of DOT’s funding is federal for construction programs; the operating side is funded primarily by the state highway fund, and a small slice by general fund for non‑highway units, Cass said. He emphasized the agency has maintained roughly the same number of budgeted positions since 2014 but that the agency’s vacancy rate has risen. To meet the FY26–27 targets, the department unfunded a mix of permanent and temporary positions across divisions — for example the finance and project development divisions reported eliminating several temporary full‑time positions.

Cass also explained several fund shifts and internal reallocations: one unmanned aerial systems (UAS) operator position was shifted from the general fund to the highway fund because much of the UAS work supports federally funded project development and surveys; other inter‑agency transfer coding changes moved costs between turnpike and highway accounts where work is appropriately restricted by constitutional or statutory limits.

DOT officials described conservative budgeting in several operational lines. For example, winter maintenance is intentionally budgeted below a three‑year average to meet targets; the department has requested transfers from fiscal committees when winter costs exceed the budgeted level. Cass said the department had to request nearly $10 million in transfers into winter maintenance through February in the current FY and that one‑time retention incentives increased that figure closer to $12.5 million when included.

The presentation also flagged longer‑term pressures that were not fully funded in the governor’s recommendation: vehicle and equipment replacement (DOT estimates about $11 million per year is needed to sustain the fleet), deferred maintenance, and staffing needed to deliver the agency’s service levels.

What comes next: Committee members asked for more detail on where vacant and unfunded positions sit across the organization and requested a machine‑readable list. DOT staff agreed to provide updated vacancy and position lists and to supply explanations where funds were shifted. The department said it will provide follow‑up detail on specific fund swaps and any program impacts requested by members.

Sources and context: Commissioner Bill Cass and DOT finance director Danielle Chandra presented the slides and figures in the committee hearing. The department cited the state highway fund and federal highway and transit programs as the dominant revenue sources that shape how operating and construction budgets are structured.

Ending: The department’s overview framed FY26–27 as a “flat” budget year that demands reallocation and prioritization at the program level. Committee members asked DOT staff for follow‑up detail on vacancies, fund shifts and the operational impacts of unfunded positions.