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County highway department warns gas-tax suspension and smaller CCMG grants will shrink paving program
Summary
Highway officials told the finance committee that state changes and the gasoline-tax suspension reduced the county's Community Crossing Matching Grant (CCMG) distribution sharply; staff said they expect roughly 35 miles of paving in 2026 and projected 25'26 miles in 2027 absent additional funding, and urged council and commissioners to identify options for the shortfall.
Monroe County's highway department warned the Long-Term Finance Planning Committee that a state gas-tax suspension and changes in CCMG distributions will cut the county's paving capacity unless additional funds are found.
Highway staff told the committee that earlier expectations for CCMG funding dropped sharply after state-level adjustments. One presentation slide showed lane-distribution estimates falling from about $2.13 million (March 2025 estimate) to $847,000 (March 2026 revision) and the department's most recent distribution was about $412,000. A highway representative said, "Is there ever enough money to pave? No," and recommended the council and commissioners discuss where to locate prior-year match dollars if they want to maintain recent paving levels.
Staff said the county's paving program supported roughly 50 miles over recent years when matching CCMG awards and council contributions aligned; they indicated the county's program will fund roughly 35 miles in 2026 under current assumptions and could fall to about 25'26 miles in 2027 if the roughly $1 million that had supported additional paving is not available. Highway staff cautioned that material price increases (asphalt tied to oil prices, fuel-related adjustments and possible salt-cost increases) and staffing needs for snow removal and emergency responses constrain the department's ability to reduce personnel as a way to preserve paving capacity.
Committee members discussed options including returning previously budgeted EDIT items to departmental budgets, interfund loans, and early conversations with the commissioners about using EDIT funds to replace lost CCMG match. Staff said any transfer from EDIT would require commissioners' approval and should be coordinated before the budget process.
Next step: highway staff will circulate digital copies of their scenario spreadsheets and work with council liaisons and the commissioners to identify funding paths before the formal budget process.
