The Montana Department of Transportation (MDT) told the Section C subcommittee that federal construction dollars are increasing but that material and labor inflation has eaten into purchasing power and that the Highway State Special Revenue Account (HSRA) is under pressure.

Chair Schillinger summarized the subcommittee's recommended MDT changes: a biennium HB2 package about 12.3% above base driven by contractor payments, equipment rental, federal transit funding, off‑system bridge repair contingent on other legislation, and added personal services. The subcommittee approved 22 new MDT positions to support bridge infrastructure, alternative contracting engineers, asset control and hydraulic/culvert engineering work and a rapid bridge repair response team to restore service after outages.

Director Chris Dorrington told the panel the department faces a "death spiral" for the HSRA fund because federal construction programs have grown while the state match (gas tax and related revenues) is flat and maintenance remains heavily state‑funded. "As that federal program goes up, so must our state match go up," he said, noting a typical federal/state split that requires about 13% state match for construction and 87% federal assistance on eligible highway projects.

Committee members discussed bridge prioritization and local bridges that fall outside MDT's system. Dorrington noted many critically deteriorated county and local bridges are not on the state system, leaving counties to find large sums for replacement; he cited an example of a local bridge estimated at $31 million to replace. He also said recruitment and retention are challenges in the current market: outside firms may retain engineers with one‑time retention bonuses that state agencies cannot match.

Representative Powers highlighted that some positions in DP packages were reduced by the committee from six to two, and Dorrington said he was comfortable with the adjustments while stressing the need to hire targeted bridal engineers.

The subcommittee also flagged additional construction dollars and the department's five‑year tentative construction plan process, which balances pavement, congestion, bridges and environmental constraints when selecting projects.