Governor and Executive Council Agenda item PDF - 2026-03-04 - agenda 10

Meeting Date

2026-03-04

Attachment Kind Label

Agenda item PDF

Attachment Relation

primary_meeting_attachment

Agenda Numbers

10

Agency Names

Department Of Transportation

Parent Meeting Title

Governor and Executive Council meeting - 2026-03-04

•IIDepartment of Transportatiori

William Cuss, P.E.

Commissioner

THE ST A TE OE NEW HAMPSHIRE

DEPA R TMENT OF ERA NSPOR TA TION

10

MAR 0 A 2026 David Rodrigue, P.E.

Assistant Commissioner

Michelle L. Winters

Deputy Commissioner

The Honorable Ken Weyler, Chairman Division of Operations

Fiscal Committee of the General Court January 28, 2026

State House

Concord, NH 03301

Her Excellency, Governor Kelly A. Ayotte

and the Honorable Council

State House

Concord, New Hampshire 03301

REQUESTED ACTION

Pursuant to RSA 228:12, authorize the Department of Transportation to transfer $3,776,578 from the Highway Surplus

Account to fund winter maintenance activities, effective upon Fiscal Committee and Governor and Council approval

through June 30, 2026. 100% Highway Funds.

Funds are to be budgeted as follows:

From: 04-096-096-960015-363615-0000 Highway Surplus Account $3,776,578

04-096-096-960515-2928 Current Requested Revised

Budget

FY2026

Change Budget

FY2026

Winter Maintenance

Source of Funds

Revenue:

000-000015 Highway Funds $46,902,118 $3,776,578 $ 50,678,696

Total $46,902,118 $3,776,578 $ 50,678,696

Expenses:

017 500147 FT Employees Special Payment $3,598,840 $0 $3,598,840

018 500106 Overtime 6,493,822 500,000 6,993,822

019 500105 Holiday Pay 44,800 0 44,800

020 500200 Current Expense 17,995,911 1,000,000 18,995,911

022 500257 Rents-Leases Other than State 13,518,673 2,000,000 15,518,673

023 500291 Heat, Electricity, Water 1,092,000 0 1,092,000

024 500225 Maint. Other than Bldg-Grounds 143,355 0 143,355

030 500311 Equipment New Replacement 1,056,790 0 1,056,790

037 500174 Technology-Hardware 50,042 0 50,042

038 500175 Technology-Software 25,100 0 25,100

039 500180 Telecommunications 169,000 0 169,000

047 500240 Own Forces Maint Bldgs & Grnds 30,000 0 30,000

JOHN O. MORTON BUILDING • 7 HAZEN DRIVE • P.O. BOX 483 • CONCORD, NEW HAMPSHIRE 03302-0483

TELEPHONE: (603) 271-3734 • FAX: (603) 271-3914 • TDD: RELAY NH 1-800-735-2964.WWW.NHDOT.COM

04-096-09.6-960515-2928 Current

Budget

FY2026

Requested

Change

Revised

Budget

FY2026

048 500226 Contractual Maint Bldgs & Gmds 44.000 0 44,000

049 584914 Class 049 Interagency 014 Expense 100,000 0 100,000

050 500109 Personal Service Temp 397,934 35,000 432,934

060 500601 Benefits 1,815,449 201,578 2,017,027

070 500704 In-State Travel Reimbursement 190,291 40,000 230,291

103 500741 Contracts for Op Services 136,111 0 136,111

Total $46,902,118 $3,776,578 $ 50,678,696

EXPLANATION

The Department requests authorization to transfer from the Highway Surplus Account, the amount of $3,776,578 for

additional winter maintenance expenditures. Specific explanations relating to the Department's spending requests from

the Highway Surplus account are as follows:

Winter Maintenance (2928) 100% Highway Funds

Class 018 Increase Overtime by $ 500,000. This anticipated increase is to cover additional overtime expenditures

during snow and ice removal during and following winter storms.

Class 020 Increase Current Expense by $1,000,000. This anticipated increase is to cover anti-icing materials usage.

Class 022 Increase Rents-Leases Other than State by $2,000,000. This estimated increase is to cover the use of

private contractors and equipment who assist with snow removal activities.

Class 050 Increase Personal Service Temp by $35,000. This increase is to cover increased usage of part-time and

seasonal employees assisting with winter maintenance activities.

Class 060 Increase Benefits by $201,578. Additional benefit expenses are the result of increased overtime and part-

time labor usage to clear roads during and after winter storm events.

Class 070 Increase In-State Travel Reimbursement by $40,000. This increase is to cover additional employee call

back mileage as prescribed in the Collective Bargaining Agreement for winter maintenance cleanup

activities.

Due to current projected winter maintenance costs, the expenditures in the above class lines for snow removal activities

are anticipated to exceed the current budget.

These transfers are required to address negative lapses associated with employee pay, to increase funding available for

temporary and seasonal help, to address anticipated need for anti-icing materials, and to ensure vendors and contractors

are paid for services provided on a timely basis.

As in previous years, any funds not expended will be lapsed back into the Highway Fund during Fiscal Year end close.

Please see below charts for the five-year trends for salt cost per ton and the actual lapses back to the Highway Fund

related to winter maintenance transfers.

5-Year Cost Trend for Salt per ton

Fiscal Year 2022 2023 2024 2025 2026

Salt per ton cost $70.36 $84.58 $82.58 $80.94 $82.57

Percentage change from prior year - 20.21% (2.36%) (2.00%) 2.02%

5-Year Winter Maintenance Lapse back to the Highway Fund

Fiscal Year 2022 2023 2024 2025 2026

Total Transfer Amount

Requested

$3,945,000 $9,695,000 $6,555,000 $10,001,710 $ 13,218,436

Lapsed Funds related to

Winter Maintenance

Transfer Request 402.606 2,606,653 2,650,380 2,501,920 TBD

Transfer Funds

Expended for Winter

Maintenance Activities $3,542,394 $7,088,347 $3,904,620 $7,499,790 TBD

See attached surplus schedule for the available balance in the Highway Fund.

Your approval of this resolution is respectfully requested.

Sincerely,

William J. Cass, P.E.

Commissioner

Attachment

state of New Hampshire

Surplus Statement - Highway Fund

Fiscal Years 2023-2026

(expressed in millions) Actual Actual Actual

PerACFR PerACFR PerACFR

FY 2023 FY 2024 FY 2025

Undeslgnated Fund Balance, July 1 (Budgetary) $ 147.8 $ 148.4 $ 123.9

Additions:

Unrestricted Revenue

Gasoiine Tax 126.8 128.5 127.2

Motor Vehicle Fees (actual includes Plea by Mali / Real ID) 126.7 137.3 141.7

Other 2.0 0.9 0.8

Less: Cost of Collection, net of lapse-DOS (28.1) (31.3) (33.0)

Other Credits (FY23 $10M; FY26 $9.0M)'^' 10.0 - -

Total Additions 237.4 235.4 236.7

Deductions:

Appropriations Net of Estimated Revenues-DOT (227.0) (244.3) (250.5)

Appropriations Net of Estimated Revenues-DOS/Other (37.0) (39.9) (41.5)

Appropriations Net of Estimated Revenue SUBTOTAL (264.0) (284.2) (292.0)

Additional Appropriations:

Transfer from Highway Surplus - Winter Maintenance RSA 228:12 (9.7) (6.6) (5.7)

Transfer from Highway Surplus - Block Grant Shortfall RSA 235:23,1 - - -

Transfer from Highway Surplus - Winter Maintenance Retention Bonus (4.3) (4.2) (3.5)

Transfer from Highway Surplus - Purchase of Leased Backhoes - (4.8) -

Transfer from Highway Surplus - CBA: Increased Winter and new Non-Winter Stipends - (1.3) (5.6)

Subtotal Additional Appropriations (14.0) (16.9) (14.8)

Less Lapse:

Lapse-DOT 44.7 40.9 53.1

Lapse-DOS/Other 1.7 4.4 9.0

Subtotal Lapse 46.4 45.3 62.1

Other (Debits) (5.2) (4.1) (5.6)

Total Deductions (236.8) (259.9) (250.3)

Current Year Activity 0.6 (24.5) (13.6)

Total Fund Balance, June 30 (Budgetary) 148.4 123.9 110.3

GAAP and Other Adjustments'^' (35.0) (37.7) (47.2)

Undeslgnated Fund Balance, June 30 (GAAP) 113.4 86.2 63.1

Notes

(1) FY26 numbers from Committee of Conference 6/19/25

(2) FY26 includes Motor Vehicle Fee Increase (HB2) $10.5M; Passenger MV Inspection Repeal (HB2 / HB649) $(1.6)M; Expedited Driveway Permit F

(3)

$0.1 M

Assuming approval of request in February 2026