MDOT briefs subcommittee: system preservation, debt ratios and reporting protocols

Steve McCullough (DLS) reviewed the Maryland Department of Transportation secretary’s office budget and highlighted system preservation and debt issues. He said the SAC recommendation for FY25 system preservation is $1.1 billion, but a 10‑year gap between needs and planned funding remains (DLS estimated an $11 billion gap over 10 years). McCullough noted the capital funding mix includes transportation trust funds, general funds and G.O. bonds.

On debt, DLS reported the department’s adopted management coverage ratio remains above management targets in most years but the forecast shows a decline toward FY29; McCullough recommended continued committee oversight and a modification to the committee language to align reporting for CTB and nontraditional debt increases.

Secretary Paul Wiedefeld, responding for MDOT, emphasized safety and system preservation as priorities and described "soft hiring freezes" focused on delaying non‑critical recruitments to meet budget targets while protecting safety‑critical positions. He also reiterated MDOT’s use of federal funding tools, noting federal dollars come with requirements on eligible uses, match rates and timing, so MDOT seeks to match project readiness to the best funding sources.

DLS recommended two pieces of budget language: one to restrict operating grants in aid to the amount budgeted and another requiring reports when capital programs change by $500,000 or more. The committee asked follow‑up questions on transit‑oriented development sites such as Laurel Park/Laurel Park Station and Bowie State, which MDOT agreed to follow up on.