INFLATION, SUPPLY CHAIN ISSUES INCREASING COSTS FOR STATE HIGHWAY DEPARTMENT

LINCOLN- During an annual briefing before the Nebraska Legislature, Vicki Kramer, director of the Nebraska Department of Transportation, said the estimated needs of the state's highway system have risen by about $2 billion, to an estimated $16.7 billion over the next 20 years. Kramer cited inflation, as well as difficulty obtaining supplies, as the main reasons for this 15% projection increase.

Kramer also told the Appropriations and Transportation and Telecommunications Committees that these increased expenses will likely delay certain projects, but couldn't name any specifics. However, she said, maintaining the current highway system in Nebraska will remain the Department of Transportation's top funding priority.

This spring, the Legislature extended the use of the one-fourth of a cent of state sales tax revenue for highway needs until 2042. With the support of Gov. Pillen, the Legislature also authorized the Department of Transportation to use bond financing for highways projects, ending the state's pay-as-you-go model.

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