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State Aid Road Construction seeks higher spending authority as fuel-tax and board timing boost county allocations
Summary
Director Lee told the subcommittee the state's State Aid Road program needs expanded budget authority to let counties move projects forward when new fuel-tax income and one-time adjustments become available, citing a months-long revenue lag and federal bridge inspection mandates.
Director Lee of the State Aid Road Construction program told Senate Subcommittee 7 that recent fuel-tax increases and a prior House timing matter increased the money flowing to counties, but that the program needs higher spending authority so projects can be let and constructed when counties submit them.
Lee said the program is governed by statutory code sections governing state aid and that money often arrives with a four-month lag from collection to county receipt. "It's collected in July. It goes to DOR in August. September comes back to us, and then we put it in their accounts in September. And then they don't know they've got it until October," he said.
Why this matters: The lag in cash receipt and the unpredictability of county project submittals mean State Aid must hold higher spending authority to avoid delaying work. Lee asked the committee for a permanent carry-forward or additional authority to match revenue coming from the fuel-tax increases so counties can "play catch up" on deferred road programs.
Bridge inspection mandate and costs: Lee also highlighted federal inspection requirements and a sizable contract budget for inspections. He said federal law requires annual or multi-year inspection schedules depending on bridge type and that MDOT budgets about $40 million a year on bridge inspection contracts (paid through federal-aid and state programs when needed). Those requirements in recent years led to bridge closures that were later addressed, he said.
Administration and oversight: Lee described how counties submit programs to State Aid, county engineers administer procurement and construction, and MDOT district engineers conduct field inspections; MDOT pays contractors directly upon approved estimates and supervises quality control.
Next steps: Lee asked that appropriation-language carry-forward lines remain and that the committee consider increased spending-authority ceilings to match higher revenues and avoid administrative delays.
