The Tennessee Department of Transportation (TDOT) has requested $308 million more from the state budget to keep up with the growing cost of maintenance and construction. It's a situation Gov. Bill Lee labeled as "sobering" and a "compelling challenge."
The governor made the statement after Transportation Commissioner Butch Eley and his staff introduced a plan to add $100 million in recurring expenses and $200 million in non-recurring costs for fiscal year 2025-26.
TDOT benefited from the state's Transportation Modernization Act in 2023 with $3 billion for major projects in the state's largest cities and $300 million for aid to counties. Yet the state's road system is under stress because of growth and the need for a better maintenance program, according to officials.
Eley said the law that passed in 2023 allowed a new work process that enabled the state to move quickly on repairs to roads destroyed by Hurricane Helene. The state still has some 600 employees trying to make roads passable in upper East Tennessee where large swaths were hollowed out and left in rubble by the stormwater.
The department's planned increase for a total budget exceeding $2.4 billion would come with a proposed $602 million for repairs, $454 million from the federal government for resurfacing and bridge repair.
Federal money for the department is expected to increase $23.8 million to $1.4 billion in fiscal 2025-26, which starts July 1. Yet state revenue is expected to dip $42.3 million to $1.28 billion, leaving the state in a $12.3 million deficit.
Transportation officials are projecting flat user fee revenue amid rising construction costs, which are up about 100% since 2021. The state depends heavily on fuel taxes for revenue, but those aren't producing enough money to continue improving roads and bridges.
State Rep. Aftyn Behn said the state needs to amend its "pay-as-we-go" philosophy because it limits the state from investing in large-scale projects by forcing the state to fund projects without borrowing and pushing costs higher.
Source: Time Free Press, Tennessee Lookout
