Controlling DOT Costs

Across jurisdictions, state legislatures have enacted provisions-beyond expenditure limits in budget and appropriations acts-intended to control DOT costs; the most common include low bid requirements or other statutory procurement guidelines. Some legislatures have taken further action. In Ohio, the legislative Controlling Board must approve waivers of competitive selection for purchases or leases over certain amounts, as well as requests for appropriation increases. Virginia's 2009 Appropriation Act downsized the DOT and directed use of private contracts for at least 70 percent of annual expenditures. Nevada statute limits the use of highway fund revenues for administrative costs. In Vermont, the DOT must prepare reports detailing bids versus cost estimates for distribution to a legislative oversight committee. These activities permit additional legislative controls and oversight over DOT costs.

Common provisions by which legislatures control DOT costs-besides those in budget and appropriations acts-include low bid requirements or other statutory procurement guidelines.