Nebraska transportation officials expect to spend nearly $15 billion maintaining and improving the state’s highway system over the next 20 years, but it remains unclear how federal infrastructure money will factor into those plans.
John Selmer, who started as director of the Nebraska Department of Transportation in March, told state lawmakers on Wednesday that he is “pleased to find the agency and its current environment much more favorable†than in years past.
“The Nebraska Department of Transportation is more agile and resilient because of the lessons learned during the 2019 floods and the lingering COVID pandemic,†Selmer said.Â
The majority of the estimated $14.8 billion in spending over the next 20 years is expected for maintaining roads and bridges — patching, sealing cracks, resurfacing and more. That's projected to cost $9.5 billion.Â
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According to the department’s analysis, about 82% of total highway miles in the state are rated at least “good,†which meets the department’s goal. For state-owned bridges, 58% are in “good†condition, about 39% are “fair†and about 3% are “poor."
System modernization, which refers to safety upgrades that don’t add capacity, is expected to cost $1.8 billion, while capital improvements — projects that add capacity and infrastructure for economic development — are expected to cost $3.5 billion.
A big unknown: How the state will spend an influx of federal money expected from the bipartisan $1.2 trillion infrastructure package President Joe Biden signed into law last month. Nebraska is expected to receive billions from the bill, including $2.5 billion to maintain and repair roads and highways.
“There is much still to be determined, but I will share what we know,†Selmer said.
He said the state will get an additional $110 million in fiscal year 2022, and that amount will increase by about 2% for four years after that. Of that formula-driven money, he said $45 million will be in existing programs that already have rules for how the money is spent, but $55 million will be in new programs that don't yet have those limitations.
“The most significant new formula program is for bridge preservation, with about $38 million in additional funding coming to the department annually and about $7 million going to local bridges annually,†Selmer said.
New money will also come in the form of discretionary funding, such as grant programs.
“At this time, no decisions have been made on the use of any new federal funds,†he said.
It’s possible the federal legislation will allow the department to speed up projects on the state's expressway system.
Up to now, $1.8 billion has been spent on the state's expressway system expansion, according to a report shared Wednesday. Of the original system identified in 1988, six projects are under construction, three are in the design phase and two are in the planning phase.
Sen. Mark Kolterman of Seward pressed Selmer about expanding U.S. 81 between York and Columbus. That's in the design phase and expected to be complete in 2035.
“I would hope that, with the money that’s coming in, we could make an attempt to move that up on the schedule,†Kolterman said.
Selmer said the time estimates for expressway projects were created before the federal legislation passed. He expects the federal money will allow the state to hold to the current schedule, he said, and the department is looking at ways to accelerate it.
Four of the lawmakers in attendance Wednesday — Sens. Curt Friesen of Henderson, Joni Albrecht of Thurston, Dan Hughes of Venango and Mike Moser of Columbus — issued a statement Tuesday coming to the defense of Republican gubernatorial candidate Jim Pillen, who dismissed the need for the federal infrastructure bill at a debate over the weekend.Â
“Could we use some money for roads and broadband? Maybe, but not today; they’re not that bad,†Pillen said at the forum. “We need to wait until the conservatives get back in charge, and then we give money and use it correctly.â€
In their statement, the four lawmakers said Pillen was correct and that "Joe Biden's out-of-control, socialist spending spree is hurting our state and our country. Like Jim, we believe federal infrastructure funding would be far better coming from a conservative-led congress. We'll continue to do all we can to oppose the Biden administration's attempts to impose its radical agenda using federal dollars with strings attached."
None of them voiced those specific concerns at Wednesday's hearing or suggested rejecting federal money. However, Sen. Suzanne Geist of Lincoln did ask if Selmer expects there to be "strings attached" for some of the federal money.
“There always seems to be,†he said. “There are certain requirements or desires of the administration with this legislation.â€
He mentioned new programs that look at carbon reduction or electric vehicle infrastructure.
“A lot of the new money is very targeted, so I would expect that there be some requirements in how those funds are utilized,†he said.