House Budget Increases Highway Fund Diversion
The House Finance Committee’s budget increases the diversion of Highway Fund away from the Department of Transportation to other state agencies to $28.5 million.
Under the House’s proposed budget, 67.3% of Highway Funds, net of block grants to the cities and towns, will go to Transportation, 31.7% to Safety, and 1.1% for other. These ratios represent an additional $500,000 over the biennium being diverted away from the Department of Transportation over the Governor’s budget.
RSA 9:9-a, which set the ratios of Highway Fund spending, would have required a minimum of 73% of the funds raised to go to the Department of Transportation, with caps of 26% to the Department of Safety and 1% for other agencies. The law, which was passed with broad bipartisan support several years ago, will be suspended as part of the language in both the Governor’s and House’s Budgets.