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DelDOT outlines COVID‑19 revenue losses, CARES Act transit aid and plans to sell bonds to sustain projects
Summary
Secretary Jennifer Cohan told the Council on Transportation that DelDOT faces multimillion‑dollar revenue losses from the pandemic, has used emergency funds and CARES Act credits for transit operations, and plans additional bond sales in FY21 to keep construction moving.
Delaware Department of Transportation officials told the Council on Transportation on June 22 that the agency is facing significant revenue shortfalls from the COVID‑19 pandemic but is using emergency reserves, federal transit relief and planned borrowing to sustain operations and construction.
Secretary Jennifer Cohan said DelDOT set aside a $10 million emergency fund and had used about $1.2 million for COVID‑related expenses. She reported an expected FY20 revenue shortfall of $63.1 million and an additional projected revenue loss of $24.7 million in FY21. Separately, Cohan said DelDOT is receiving a one‑time budget credit of $50.4 million under the CARES Act to cover roughly 18 months of Delaware Transit Corporation operations.
"We have used about $1.2M from that fund," Cohan said of the emergency reserve, and she described the CARES Act transit credit as allowing DTC operations to be subsidized without tapping the Transportation Trust Fund for the covered period.
Council members pressed for details. At Chairman Ted Williams' request, Doug Atkin of the Federal Highway Administration said the federal Highway Trust Fund faces the possibility of exhaustion early next year and that FHWA is monitoring congressional developments; he warned this could require fund‑management measures that slow payments. "We won’t let it go broke, but essentially going broke early next year," Atkin told the council.
Councilman Martin Lessner asked whether CARES Act funds or other federal dollars could be redirected to COVID‑related infrastructure such as bike lanes. Secretary Cohan said some pandemic‑related expenses (PPE, plexiglass at DMV and for bus operators) might be recoded to eligible categories, but broader infrastructure uses were unlikely under current guidance.
Cohan told the council DelDOT will sell additional bonds in FY21 to replace lost revenue and maintain its Capital Transportation Plan. She said current interest rates and DelDOT's strong finance position make new borrowing feasible.
The meeting minutes show the council approved the prior meeting minutes and adjourned; they do not record any separate vote on borrowing plans or use of CARES Act funds.
