House Transportation Committee weighs $10M recapture to advance 16 paving and bridge projects

Jeremy Reed, chief engineer for the Agency of Transportation, told the House Transportation Committee on Jan. 29 that a $10,000,000 purchase-and-use recapture allowed the department to bring 16 projects into the FY2027 construction program.

"What you see here are 16 projects that, if not for the $10,000,000 purchase and use recapture would not be moving forward in FY27," Reed said, describing a list made up largely of paving work with a smaller share of bridge preservation and new bridge projects.

Reed said the department aggregates projects and frequently "overfills" the program as a hedge against delays. He described the accounting that produced a roughly $9.3 million net increase in paving work (the $10.7 million aggregated paving line minus design money already in the white book) and noted the department also leverages roughly $64 million in federal funds to support the work.

The chief engineer walked the committee through the project's prioritization framework, saying the state uses a performance-based DPSP (project selection and prioritization) where safety and asset condition carry heavy weight. "It is very much a two-step process: one is the programming of our projects, and then one is selecting it for construction," Reed said, adding that readiness to proceed and federal match rates (for example, an 80/20 vs 90/10 split) affect which projects are advanced.

Committee members pressed on schedule and cost risks. Reed explained projects are often multi-year contracts that carry money forward and that federal and state fiscal calendars do not align. He offered a cautious view on cost trends: inflation has stabilized relative to recent peaks but has not returned to prior levels. On industry capacity, Reed said he had "no concerns on a $150,000,000 paving program" from either agency or contractor capacity.

Members raised local concerns about long waits for new projects. Chair Walker said communities tell RPCs they cannot meaningfully add projects when budgets are constrained; Walker also told the committee there has been a long-term revenue shortfall from motor-fuel-related collections that members should consider in budget conversations.

Reed emphasized the department sought projects that were "ready"—with design, NEPA and right-of-way clearances or near-clearance—because that allows dollars to be used quickly. He said the $10,000,000 addition did not fundamentally change priorities but allowed ready projects that had been pushed out by other delays to return to the FY27 list.

There were no formal votes or motions at the hearing. The committee scheduled follow-up testimony from maintenance staff (including a focused discussion on salt and winter operations) and a separate public transit block later in the morning.

What happens next: AOT staff will provide additional detail about the specific projects added with the $10,000,000 and a reconciled list of projects that were pushed or delayed as the committee considers budget trade-offs.