BOISE -- The Idaho
Transportation Department announced today an $8.6 million holdback of its
FY2010 budget, based on revenue that is not meeting projections made this
spring. The holdback is part of the department's annual budget request due Sept.
1 of each year.
The Idaho Legislature
appropriated $251 million in state funds to the department before it adjourned
in May. ITD administrators, however, indicate current funding sources are about
$242.4 million. That represents a shortfall of 3.4 percent, said ITD Acting
Director Scott Stokes.
Gov. C.L. Butch Otter this
morning (Sept. 25) directed all state General Fund agencies to reduce their current budgets to offset
declining revenue. He called for "tiered
spending holdbacks based on the nature of each agency's mission" because income and sales tax revenue to the state's General
Fund is significantly lower than anticipated.
Although ITD is not a
General Fund agency and derives most of its revenue from federal and state fuel tax receipts and vehicle
registration fees, the department is not immune to declining revenue, Stokes explains.
"We recognize that our revenue
is failing to meet expectations and believe that reducing our budget by $8.6
million is a prudent business decision. We will continue to monitor department
revenue to determine if additional changes might be necessary."
The budget reduction will come
from the contract construction program.
"We elected not to identify
construction projects based on the full appropriation until the economic
forecast was complete in August," Stokes said. "As a result, we are not cutting
any projects."
Despite severe cuts to its
budget over the past three years, ITD continues to deliver important services
for Idahoans, he added.
In the past two years, ITD
reduced administrative costs by more than 10 percent, including, and in
addition to: personnel costs, the building program, the state construction
program, out-of-state travel and replacement equipment.