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Structures program proposes $166.5M for FY27 as inflation, flood recovery push costs higher
Summary
The Senate Transportation committee heard a presentation from Jim Loy, structures program manager, on a $166.5 million FY27 Structures Program budget covering 160 projects — including 35 flood-related replacements — while officials warned that recent inflation and added scope have pushed many project estimates higher.
The Senate Transportation committee heard from Jim Loy, structures program manager, on the department's FY27 Structures Program, which proposes $166.5 million to fund 160 projects, 92 of them in construction and 35 identified as permanent emergency replacements stemming from 2023–24 flooding.
"The total budget is 166 and a half million," Jim Loy said, describing the package as a modest increase of $5.3 million over FY26 and noting the mix of projects spans interstate, state highway and town highway bridges.
Why it matters: committee members pressed agency staff on why several projects exceeded earlier cost estimates and asked how inflation and added scope have affected the program's ability to keep bridge-condition measures within agency targets. Loy said some maintenance projects uncover additional work once a structure is opened, and several large projects advanced in design have seen cost growth.
The interstate bridge program (Tab 5b) is proposed at $51.3 million for FY27, with 33 projects — 21 funded for construction — and is funded roughly 90% by federal funds and 10% by state Transportation Infrastructure (TI) revenue. Loy said a planned replacement at Exit 1 in Bradboro is contingent on a pending grant the department expects to receive and that the agency is prepared to apply for the funding.
The committee discussed several flagship projects. Loy described the long-running Royal bridge rehabilitation as a multi-year, major-rehab effort now in its third year and highlighted the Springfield I‑91 package as an eight‑structure project currently in design with about $2 million proposed in FY27; the agency's working estimate for those eight structures is roughly $80 million for construction.
On inflation, the department presented internal analysis showing steep cost pressure. "Between 2022 and 2025, we were looking at 60%" higher construction cost for the same project, Loy said, adding that the committee can request inflation‑adjusted comparisons for clearer year‑to‑year analysis. Committee members asked the agency to present costs in comparable-year dollars or adjust figures to a single base year to separate flood‑related ER spending from general inflation.
Funding shifts in FY26–27 reflect a large share of ER (emergency-repair) projects added after floods in 2023–24. Loy said state ER transfers are used to provide the state's match for Federal Highway Administration ER funds. The department showed condition‑rating projections indicating current funding levels generally meet the agency's target thresholds, while warning that final condition figures improve only after constructed projects are inspected and transferred into the 'good' classification.
Committee members also requested more detail on community impacts for projects that require detours or long closures; the department agreed to provide detour packages, community‑impact information and more granular cost comparisons on request. The committee did not take any formal vote on the budget during this session; staff said they would return with additional town‑highway program briefings and requested materials.
