MaineDOT is scaling back some projects in the current Work PlanFYI

[Coughlan, Peter]

FYI

Peter M. Coughlan, P.E.
Director, Maine Local Roads Center (LTAP)
Community Services Division
MaineDOT, Station 16, 24 Child St
Augusta ME 04333-0016
Ph: 207/624-3266   FAX: 207/624-3301
peter.coughlan at maine.gov<mailto:peter.coughlan at maine.gov>

Integrity - Competence - Service

>From MaineDOT ...........

Please find attached a letter that describes 8 financial risk areas we are tracking of which any one or more could impact the delivery of the 26-27-28 Work Plan.  Please feel free to share with your membership.

You may have heard from contractors or the media that MaineDOT is scaling back some projects in the current Work Plan. That is accurate.  At this time, we are cutting 6 paving projects and will be evaluating additional reductions this summer.

The reasons for these cuts are complex and multifaceted.   Once a construction contract is signed, we have little to no control over how project expenses are incurred over the next one to four years, depending on the project scope and schedule.  Therefore, we are always forecasting our cashflow out on a three-to-four-year horizon.  Looking ahead, there are several uncertainties that may impact our ability to deliver projects and pay contractors and consultants.   Here are some of the funding risks we are tracking:


  *   Aggressive programming through an inflationary environment
  *   A $130 million structural gap in state capital funding in SFY 2028 with no legislature-approved bond or other mechanism to address the gap
  *   Federal reauthorization year, with uncertain outcomes for Maine
  *   Persistently high and potentially rising fuel and commodity prices
  *   The potential of another federal shutdown in October 2026, which could be much more impactful than last year's shutdown.

The bottom line is we'll be cutting or postponing some construction and engineering efforts until we work though these issues.   So, the portfolio of our work of may change, but we do not expect to see a change in the amount of work we will do in-house.

We know that this can be a bit unnerving.   In my time here we have been through these several times.   Historically, these challenges have been temporary.

Trust that we will keep you updated as we navigate these issues and what they mean for our work.

Please reach out with any questions or concerns.

Thanks,
Jenn


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Jennifer Grant
Director
Bureau of Planning
Maine Department of Transportation
16 State House Station, Augusta, Maine 04333
p: (207) 624-3227
c: (207) 242-0828
jennifer.grant at maine.gov<mailto:jennifer.grant at maine.gov>

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