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Legislative committee hears JFO on governor's FY27 transportation budget; $33 million shortfall offset with indirect-cost shift, layoffs and scaled-back work
Summary
Joint Fiscal Office staff told the committee the governor's FY27 transportation package totals about $934 million; lawmakers were told a roughly $33 million shortfall is addressed by using federal funds for overhead (indirect cost rate), staffing reductions and removing or delaying projects, while $10 million from a purchase-and-use revenue stream is being leveraged to increase federal matching for paving.
Logan Moberry of the Joint Fiscal Office opened the committee's review of the governor's FY27 transportation recommendation, presenting a fund-by-fund spreadsheet that lays out T Fund, federal, local/other and internal-service accounts.
"These documents are the same format as you saw last year," Moberry said as he walked members through the spreadsheet and comparison to the FY26 enacted budget.
Chair Walker told the committee that the recommended budget attempts to close a roughly $33 million shortfall. "Now everybody knows that there was a $32,000,000 hole," Walker said, and the recommendation fills that gap through several distinct moves rather than a single cut.
Moberry and Walker…
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