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State Highway Administration faces federal accounting scrutiny as winter costs and capital needs grow
Summary
SHA officials told lawmakers that a post-pandemic shift to more federally funded projects has increased workload and receivables; the OLA audit found $359 million in potentially ineligible federal charges and SHA outlined corrective actions and staffing requests to improve federal reimbursements and project oversight.
Department of Legislative Services analysts told the subcommittee that the State Highway Administration's six-year consolidated transportation program totals roughly $7.8 billion and that federal funding now accounts for a larger share of SHA's capital program than before the pandemic. DLS flagged recent federal rescissions and an Office of Legislative Audits (OLA) finding that SHA charged roughly $359 million in project expenses to federal projects for expenditures not authorized by Federal Highway Administration guidance.
State Highway Administrator Will Pine…
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