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Draft would let DOT publish nonessential road list, offer buyback fund and reshape CTCs; counties press funding and capacity concerns
Summary
The draft authorizes DOT to publish a list of 'nonessential' state roads for transfer to local governments, creates a system realignment/buyback fund (DOT requested $25M pilot), and restructures CTC appointments and oversight; lawmakers raised worries about local capacity, payment rules and preserving DOT flexibility.
Emma outlined a proposed system rationalization (section 32) that would require DOT to study the state highway system, publish a list of roads deemed nonessential to state operation, and (with coordinating‑council approval) permit transfer of those roads to counties, municipalities or other entities. The draft establishes a system realignment (buyback) fund; DOT staff noted a $25 million nonrecurring request as a pilot to seed the program.
The draft includes local fiscal mechanisms for counties that accept transfers: in counties where all listed roads are transferred, the county transportation committee (CTC) would be exempt from a 25% state‑road spending requirement and counties could implement a 2¢ local sales option or additional millage to meet maintenance obligations. Emma said the intent is to incentivize willing local partners while preserving standards requiring transferred roads meet or exceed state highway standards.
Members repeatedly asked whether DOT would pay for transfers, whether short sections (e.g., school entrances) could be handed over without payment, and whether DOT could reclaim roads if a county failed to maintain them. Secretary Powell recounted prior circumstances where DOT had resumed maintenance when local capacity failed and urged a voluntary, staged approach: shrinking the state inventory rather than expanding it. Several members urged clearer language so the statute does not unintentionally remove DOT’s flexibility in special circumstances.
The bill also changes CTC structure and funding: it requires appointment notification to DOT within 30 days; creates a register of members; sets CTC membership ranges (3–11) with minimum county majority and guaranteed municipal representation; raises administrative caps from $2,000 to $10,000; requires CTC members to file yearly statements of economic interest; and gives the secretary oversight to approve CTC expenditures on state highway projects.
Lawmakers asked for more specificity on short sections, matching funds and the limited size of the $25 million pilot. The committee asked staff to clarify language on transfers, repossession or reversion and options for counties lacking local tax capacity.
