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New Hampshire DOT official: similar cost pressures; turnpike revenue covers operations but not new capital

December 19, 2025 | Senate Transportation, SENATE, Committees, Legislative , Vermont


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New Hampshire DOT official: similar cost pressures; turnpike revenue covers operations but not new capital
A visiting official identified in the record as Commissioner Cass (New Hampshire Department of Transportation) told the committee that New Hampshire faces the same combination of flat state receipts and sharply higher construction and labor costs as Vermont.

Commissioner Cass described NH’s funding mix: federal aid (roughly 38% of program spending), a state highway fund (about 31% that includes gas tax and motor vehicle fees), turnpike tolls (an enterprise system), and small amounts of general‑fund support. By statute, he said, 12% of highway fund receipts (gas tax and vehicle fees) are distributed directly to cities and towns by formula (50% population, 50% road miles) as municipal block grants.

On turnpikes, Cass said toll revenue must first cover bond debt service and operations; only then is money available for R&R and capital. “Right now, the Turnpike revenue is keeping up with the overall operations and maintenance, the debt service and the R and R work, but we don't project having sufficient revenue to take on any major capital projects,” he said. He added that a proposed $1 increase at major toll plazas was discussed during NH’s budget process but not advanced by the governor.

Cass also described NH’s 10‑year capital program choices: with flat projected revenue and rising project costs, NH is cutting or delaying roughly $400 million in projects across the 10‑year plan and prioritizing maintenance and preservation of core system assets.

The committee heard the NH presentation as a regional comparison; senators said they found the parallels useful as Vermont refines its own budget strategies.

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