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FY 2011 State Budget Agreement

FY 2011 State Budget Agreement

To see a summary of the Fiscal Year 2011 state budget agreement click here.

FY 2011 Transportation funding agreement

As the dust is settling from the 2nd Session of the 52nd Legislature, it appears the state's Eight-Year Construction Work Plan will remain on course.

Since originally reporting the outline of the FY 2011 budget agreement, which provides long-term funding to the Oklahoma Department of Transportation for road and bridge maintenance and repair efforts, additional details have been made known as ODOT appropriations bills were passed last week.

Please find the below summary of the agreement which still equates to additional investments for transportation to the tune of $154.2 million new dollars over the next ten years. Further, the cap on the ROADS fund will be lifted from $370 million to $400 million, and increase the annual dedicated "off the top" allocation to ODOT from $30 million to estimated $35.7 million (annualized). This will allow for the increased funding for the debt service and ensure expanded project planning in the future to continue.

However, ODOT will participate in the across-the-board agency reductions with a 7.5% reduction for FY 2011. Despite this reduction, the additional, long-term investments provided by raising the cap to $400M and increased annual allocations of $35.7M will allow for the following:

  • The largest number of bridges scheduled for repair or replacement in state history

  • Expanded project planning capacity for the Eight-Year Construction Work Plan

  • Continuance of the CIP bond debt payments

  • Annual increase of $30 M (plus an additional $5.7M) remains in tact for FY 2011 and beyond

  • $65 million bond (in exchange for cash from ODOT's existing budget) anticipated for August 2010.

  • This is in addition to the $300 million in authorization provided by HB 2272 in 2008, which will be sold in two phases. The first $150 million in bonds were sold last summer, and the second $150 million will be combined with this new authorization of $65 million for a total of $215 million.

  • An additional annual $5.7 million in additional debt service ($35.7M total), beginning in FY 2012 which is the estimated cover the cost of the bond debt payments for the $65 million

  • Cap in ROADS fund spending raised from $370 to $400 million (estimated cap will be hit in FY 2017)

We believe this is the best solution, in this very difficult budget climate, to allow ODOT to keep the 8-year Construction Work Plan in tact. It cannot be underscored the dire position of all state agencies, and across-the-board cuts that all agencies participating in this year. For transportation interests, allowing additional and future investments to be provided is great for Oklahoma's roads and bridges this session.

Our most sincere appreciation to Speaker Benge, Pro Tem Coffee, Governor Henry and the House and Senate for reaching an agreement that provides long-term funding to ODOT for road and bridge maintenance and repair efforts. Also, special thanks to Secretary Gary Ridley and all the professionals at ODOT for their help and guidance this session.

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