Coronavirus Ended Traffic, But It Could Also Delay These CDOT Construction Projects

Image Credit: CDOT

The COVID-19 pandemic is creating revenue uncertainty for CDOT and some projects are at risk of losing funding. With lower traffic volumes, gas tax revenue is expected to decrease, and revenue shortfalls for the overall state budget could reduce or eliminate future General Fund transfers to transportation. CDOT is anticipating a $100M budget hit in the next year, with a total estimated loss of $250M over the next several years. 

In addition, funding for the second tranche of SB 267 is vulnerable due to market volatility. The State Treasurer was scheduled to issue the Certificates of Participation (COP) in March for $500M but there were no buyers. The State Treasurer will attempt to issue the debt in Mid-May, but it's possible the debt will not be issued or will not bring in the full $500M.

CDOT is proposing to focus cuts on major capital projects funded through the SB 267 and SB 1 program that haven't yet been awarded. Cuts would be spread across the state. Large, multiple-year projects already under construction, such as North I-25, would be held harmless. CDOT is holding off on advancing projects until there is clarity on the Year 2 COPs, and in the meantime is preparing for funding cuts by reviewing project commitments and establishing a Transportation Working Group.

For more on this topic, read the articles in The Denver Post and CPR.