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<p class="MsoNormal"><span style="font-size:11.0pt">FYI<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Bookman Old Style",serif;mso-ligatures:none">Peter M. Coughlan, P.E.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Bookman Old Style",serif;mso-ligatures:none">Director, Maine Local Roads Center (LTAP)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Bookman Old Style",serif;mso-ligatures:none">Community Services Division<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Bookman Old Style",serif;mso-ligatures:none">MaineDOT, Station 16, 24 Child St<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Bookman Old Style",serif;mso-ligatures:none">Augusta ME 04333-0016<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Bookman Old Style",serif;mso-ligatures:none">Ph: 207/624-3266 FAX: 207/624-3301<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Bookman Old Style",serif;color:blue;mso-ligatures:none"><a href="mailto:peter.coughlan@maine.gov"><span style="color:#0563C1">peter.coughlan@maine.gov</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Bookman Old Style",serif;color:blue;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height:105%"><i><span style="font-size:10.0pt;line-height:105%;font-family:"Constantia",serif;color:#80340D;mso-ligatures:none">Integrity – Competence – Service
<o:p></o:p></span></i></p>
</div>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal">From MaineDOT ………..<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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: <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoNormal" style="margin-left:2.25pt;mso-list:l0 level1 lfo3">Aggressive programming through an inflationary environment
<o:p></o:p></li><li class="MsoNormal" style="margin-left:2.25pt;mso-list:l0 level1 lfo3">A $130 million structural gap in state capital funding in SFY 2028 with no legislature-approved bond or other mechanism to address the gap<o:p></o:p></li><li class="MsoNormal" style="margin-left:2.25pt;mso-list:l0 level1 lfo3">Federal reauthorization year, with uncertain outcomes for Maine
<o:p></o:p></li><li class="MsoNormal" style="margin-left:2.25pt;mso-list:l0 level1 lfo3">Persistently high and potentially rising fuel and commodity prices
<o:p></o:p></li><li class="MsoNormal" style="margin-left:2.25pt;mso-list:l0 level1 lfo3">The potential of another federal shutdown in October 2026, which could be much more impactful than last year’s shutdown.<o:p></o:p></li></ul>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Trust that we will keep you updated as we navigate these issues and what they mean for our work.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Please reach out with any questions or concerns.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks,<o:p></o:p></p>
<p class="MsoNormal">Jenn<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><a href="https://www.maine.gov/dot/"><span style="color:black;mso-ligatures:none;text-decoration:none"><img border="0" width="86" height="81" style="width:.8916in;height:.8416in" id="Picture_x0020_451190496" src="cid:image003.png@01DCCE44.512B1C30"></span></a><span style="mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black;mso-ligatures:none"><img border="0" width="1" height="210" style="width:.0083in;height:2.1833in" id="Picture_x0020_326826941" src="cid:image004.png@01DCCE44.512B1C30"></span><span style="mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="mso-ligatures:none">Jennifer Grant<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><i><span style="font-size:10.0pt;color:black;mso-ligatures:none">Director</span></i></b><b><span style="mso-ligatures:none"><o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:black;mso-ligatures:none">Bureau of Planning </span><span style="font-size:10.0pt;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-top:4.0pt"><b><span style="font-size:11.0pt;color:#003C71;mso-ligatures:none">Maine Department of Transportation</span></b><span style="mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:black;mso-ligatures:none">16 State House Station, Augusta, Maine 04333</span><span style="mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:black;mso-ligatures:none">p: (207) 624-3227<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:black;mso-ligatures:none">c: (207) 242-0828</span><span style="mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><u><span style="font-size:10.0pt;color:#467886;mso-ligatures:none"><a href="mailto:jennifer.grant@maine.gov">jennifer.grant@maine.gov</a></span></u><span style="mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;color:black;mso-ligatures:none"> </span></b><span style="mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal"><a href="https://www.linkedin.com/company/maine-department-of-transportation/"><span style="color:black;mso-ligatures:none;text-decoration:none"><img border="0" width="24" height="24" style="width:.25in;height:.25in" id="Picture_x0020_1686467853" src="cid:image008.png@01DCCE44.512B1C30"></span></a><span style="mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal"><a href="https://bsky.app/profile/mainedot.bsky.social"><span style="color:black;mso-ligatures:none;text-decoration:none"><img border="0" width="24" height="24" style="width:.25in;height:.25in" id="Picture_x0020_1010548373" src="cid:image009.png@01DCCE44.512B1C30"></span></a><span style="mso-ligatures:none"><o:p></o:p></span></p>
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