This bill appropriates funding for the Idaho Transportation Department for fiscal year 2027, covering personnel costs, operating expenses, and capital projects across transportation services, motor vehicle programs, and highway operations. It authorizes the department to use unspent funds from the previous fiscal year for specific purposes like airport development grants, construction contracts, and right-of-way acquisitions, with a reappropriation limit of $300 million for construction and acquisition activities. The legislation also allows for corrections of accounting errors from prior years and sets an effective date of July 1, 2026, when the funding becomes available for use.
This bill revises how Idaho distributes transportation funding from the Highway Distribution Account. It gradually increases the share going to local governments (from 38% to 40% by 2025) while increasing the state highway account share (from 57% to 60%), and eliminates the law enforcement account's allocation. Crucially, it removes a restriction preventing fuel tax revenues (including fees from electric/hybrid vehicles) from being used for highway funding. These changes adjust existing fund distribution formulas without creating new taxes or programs.
H 535 revises Idaho's transportation funding formulas to adjust how highway account revenues are distributed. It increases the percentage of funds going to local governments from 38% (2021) to 40% (2025+) while decreasing the state highway account share from 57% to 60%, and eliminates a restriction on using fuel tax revenues. The bill also updates allocations for local bridge inspections and special fuel taxes. These changes directly affect local governments receiving highway funds and the state highway program. The bill makes technical adjustments to existing law without creating new programs or altering tax rates.
