CDOT Anticipating Funding and Project Reductions Due to COVID-19

07-May-2020 to 18-Aug-2020

CDOT, like most organizations, is not immune to the economic impacts of COVID-19. Last year, CDOT developed a 10-year TransportationPlan based upon community feedback and last month they released a list of priority projects to be funded over the next four years. During the Transportation Commission meeting in April and a subsequent special meeting on May 7th, CDOT reconfirmed their commitment to the Plan but noted that adjustments to the budget and planned projects are necessary as a result of COVID-19. The $500 million of debt that CDOT was set to receive from the state Treasurer in March for Year 2 of SB 267 has been delayed until the end of this month. Even if CDOT receives all of the promised funds, the agency still expects to lose about $250 million over the next four years in general fund revenue and gas tax due to people staying at home and driving less. Although CDOT is "planning for the worst, and working toward the best," contractors can expect to see several major projects put on hold and others likely cut from the schedule this year. Unfortunately, current projections also show that the budget shortfall for FY 2021 could exceed that in the current year unless additional funding is made available from a Federal stimulus package or other sources.

The good news is that projects that are in process and multi-year projects that depend on more funding to continue, such as I-25 South Gap and US 550/US 160 Connection South, will proceed on schedule. CDOT plans to honor all awarded projects and they intend to proceed with all projects that are waiting for a notice to proceed, once they get clarification on the next round of SB 267 funding. Additionally, projects that received Federal grant/partnership funding will also move forward as planned. Of the 35 SB 267 projects planned for this year, 18 fall into the categories above and will keep going (shown on page 9). The remaining will be evaluated and added back to the schedule as funding becomes available. Contractors should continue to monitor CDOT's 90-day Forecast (Go Sheet) of upcoming projects and sign up for the Connect2DOT Bid Matching System to be notified of advertised construction bids. For more information, tune into the next Transportation Commission meeting on May 21. Click here for the agenda and a link to the online meeting.