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DOTD deputy secretary outlines project funding and recurring vehicle-sales revenue
Summary
Deputy Secretary Barry Keeling told the district the connector project has roughly $12.9 million budgeted (about $5.5 million spent), and that recurring vehicle-sales tax collections produced $31.7 million in 2024 with an expected $40 million per year going forward; a $300 million state deposit also sits in mega-fund accounts but only recently began earning higher returns.
Deputy Secretary Barry Keeling gave the Capital Area Road and Bridge District a summary of funding available for the Mississippi River connector project and the larger 'mega project' accounts.
Keeling said $12.9 million is currently budgeted to the connector project, with about $5.5 million expended and roughly $3.9 million committed, leaving a remainder of about $3.4 million in the project account. He told board members the current funding should cover environmental-stage work through about 2026.
"So currently on budget there's about $12,900,000 and expended is about $5,500,000 with, committed on project about $3,900,000 with a balance of about $3,400,000 not on budget," Keeling said.
Keeling said the first year of vehicle sales tax collections dedicated to the mega projects produced about $31.7 million for the connector project (one-quarter of a $127 million total collected for the four mega projects). He projected another ~$40 million in vehicle-sales tax revenue in FY 2025, noting the statutory cap for the program is $160 million divided among the four identified projects.
Keeling also reported that roughly $300 million of state general funds had been deposited previously into the mega-fund accounts and that the treasurer recently allowed those funds to be invested; interest earnings to date were about $750,000 because the funds were invested only within the last year.
Board members asked whether the recurring $40 million could be bonded to pay for construction; Keeling said that bonding the $40 million revenue stream alone would not generate sufficient proceeds to cover the project's likely cost and that final financing decisions will depend on how the project develops and what other funding sources are available.
Keeling cautioned the board that legislative decisions can change allocations: while investments are being managed to protect principal, he said only the legislature can clarify whether funds could be repurposed in future sessions.
