State economists ask for extra time to finish highway‑cost methodology review

Carl Riccadonna, chief economist and head of the Office of Economic Analysis, told the House Transportation Committee that the biennial Highway Cost Allocation study (HCaTS/HCAS) is a complex, data‑heavy process that begins in Q1 of even‑numbered years and typically produces results for odd‑numbered years. Riccadonna said a separate methodology evaluation required by legislation (referenced in committee testimony as HB 3991 and HB 3992) is due June 30 under current law but cannot feasibly be incorporated into the January 2027 HCaTS report.

"The earliest possible implementation for the findings from this methodology evaluation…would not be for the HCaTS report which we will deliver in January '27, but rather January '29," Riccadonna said. He asked the committee to consider extending the methodology study deadline to March 30, 2028 to allow sufficient time for a thorough, robust evaluation and incorporation into the 2029 HCaTS update.

Nazan Malik of the Legislative Revenue Office told the committee she concurred with the Office of Economic Analysis that incorporation into the 2027 study is unlikely and recommended postponement or addressing the timing through omnibus legislation or a separate bill.

Riccadonna said his office will prioritize elements that can be usefully incorporated sooner if possible, but cautioned that a wholesale methodology rewrite requires time for data collection, study review team deliberations and technical work. Committee members acknowledged the competing needs for timely HCaTS outputs and thorough methodological review and reserved the option to weigh an extension in forthcoming committee drafting and sessions.

No formal vote on the extension request was taken during the session; staff noted the study review timeline and committee bills on the agenda.