Officials brief senators on re-engrossed HB 2: $12.8 billion bill, pilot bundled projects, limited cash left

Matt Baker, director of the Office of Facility Planning and Control, presented an overview of the re-engrossed House Bill 2 and explained changes since the House version. He said the original House magnitude was about $11.1 billion and the re-engrossed bill is roughly $12.8 billion, with an actual net increase of about $362.6 million after accounting for bundled projects and DOTD placeholders.

Baker summarized funding categories: reauthorized P1, new P1 ($574 million), P2 additions, P5 listings and other means of finance. He said $395.6 million of the new P2 figures represent bundled projects and $53.9 million are DOTD placeholders that will not require new funding, and that the bill includes a pilot for bundled projects at several universities. "The bundled projects are included in this bill in P2 and P5 to allow us to move those individual appropriations into the bundled project," Baker said, describing a pilot at LSU Baton Rouge, UL Lafayette and Southern Baton Rouge.

Committee members pressed on near-term cash and P1 capacity. Baker confirmed the P1 bonding capacity is essentially used and that about $9.46 million in surplus cash remains; that cash could be placed on projects immediately once the bill becomes law. He described the commitment process for projects that are "shovel-ready" and gave guidance for nonstate entities seeking assurance before entering contracts.

Senators asked for lists of dormant P1 projects that could be reclassified to free P1 capacity and for updates ahead of the September bond commission; staff agreed to provide the latest lists to the chair and members.

Next steps: staff will provide updated lists of dormant P1 projects and the division will continue work with project managers on commitment requests ahead of the bond commission.