Appropriation; Transportation, Department of.

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To: Appropriations E;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Oliver, Read, Arnold,
Boyd (19th), Hines, Mangold, Massengill,
Roberson, Scoggin

HOUSE BILL NO. 1938
(As Sent to Governor)

AN ACT MAKING AN APPROPRIATION FROM SPECIAL FUNDS IN THE 1
STATE TREASURY FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF THE 2
MISSISSIPPI DEPARTMENT OF TRANSPORTATION, FOR THE FISCAL YEAR 3
2027; AND FOR RELATED PURPOSES. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 5
SECTION 1. The following sum, or so much thereof as may be 6
necessary, is appropriated out of any money in the State Treasury 7
to the credit of the Department of Transportation, for the purpose 8
of defraying the administrative expenses of the Mississippi 9
Department of Transportation for the fiscal year beginning 10
July 1, 2026, and ending June 30, 2027............................ 11
............................................... $ 1,565,117,653.00. 12
SECTION 2. Of the funds appropriated under the provisions of 13
this act, not more than the following amount of funds, with the 14
exception of the provisions in this section, shall be expended 15
only for "Personal Services," which includes "Vacancy Funding," 16
for the following authorized number of employment headcount: 17
FUNDING: 18
General Funds: $ 0.00 19
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Special Funds: $ 195,429,310.00 20
Total Funds: $ 195,429,310.00 21
PERSONAL SERVICES: 22
Employee Salaries, Wages and 23
Fringe Benefits: $ 187,609,055.00 24
Progressions: $ 1,646,720.00 25
Vacancy Funding: $ 6,173,535.00 26
Total Personal Services: $ 195,429,310.00 27
AUTHORIZED HEADCOUNT: 28
Permanent: 2,706 29
Time-Limited: 0 30
As used in this section, the term "Personal Services" shall 31
mean funds provided under the major object of expenditure category 32
Personal Services for Salaries, Wages, and Fringe Benefits. Funds 33
in this category shall not be transferred to any other category. 34
It is the intention of the Legislature to ensure compliance 35
with the Variable Compensation Plan, as outlined in Section 36
25-9-147, Mississippi Code of 1972. Payment from these funds 37
shall be in accordance with the Variable Compensation Plan 38
promulgated by the Mississippi State Personnel Board. It is the 39
Legislature's intention that no employee's salary falls below the 40
minimum salary established by the Mississippi State Personnel 41
Board. 42
The State Personnel Board shall determine and publish the 43
projected annual cost of "Personal Services" based on monthly and 44
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year-to-date payroll expenditures in compliance with the 45
provisions of this act. 46
With the funds herein appropriated, it shall be the agency's 47
responsibility to ensure that no single personnel action or 48
combination of personnel actions, when annualized, exceeds the 49
Fiscal Year 2027 appropriation for "Personal Services" with the 50
exception of escalated funds. Further, it shall be the agency's 51
responsibility to ensure that funds required to be appropriated 52
for "Personal Services" for Fiscal Year 2028 do not exceed Fiscal 53
Year 2027 funds appropriated for that purpose unless programs or 54
positions are added to the agency's Fiscal Year 2027 budget by the 55
Mississippi Legislature. 56
If, at the time the agency takes any action to change 57
"Personal Services," the State Personnel Board determines that the 58
agency has taken or will take an action that would cause the 59
agency to exceed the funds appropriated in this act when 60
annualized for Fiscal Year 2027 or increase the need for "Personal 61
Services" for Fiscal Year 2028, when annualized, the State 62
Personnel Board shall process no salary actions until such time as 63
the requirements of the provisions of this section are met with 64
the exception of new hires determined to be essential for the 65
agency. 66
When used in this section, "Vacancy Funding" shall mean funds 67
included in the Total Personal Services amount listed above and 68
designated for approved vacancies in Fiscal Year 2027. These 69
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funds are to be utilized to increase the number of filled 70
headcounts that were authorized but unfilled as of the last day of 71
Fiscal Year 2026. If the agency fills additional headcounts after 72
March 1, 2026, until the end of Fiscal Year 2026, the amount of 73
available Vacancy Funding may be proportionally adjusted to 74
reflect the updated number of filled headcounts. The agency shall 75
be responsible for ensuring that "Vacancy Funding" is used to 76
increase headcounts and not for promotions, title changes, 77
in-range salary adjustments, or any other mechanism for increasing 78
salaries for current employees. 79
Any transfers or escalations shall be made in accordance with 80
the terms, conditions, and procedures established by law or 81
allowable under the terms set forth within this act. The State 82
Personnel Board shall not escalate positions or increase the 83
Personal Services total without written approval from the 84
Department of Finance and Administration. The Department of 85
Finance and Administration shall not provide written approval to 86
escalate any funds for salaries and/or headcounts without proof of 87
availability of new or additional funds above the appropriated 88
level. Unless specifically noted, all Fiscal Year 2026 escalated 89
headcounts have been accounted for and shall be converted to 90
authorized time-limited headcounts. 91
No general funds authorized to be expended herein shall be 92
used to replace federal funds and/or other special funds used for 93
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salaries authorized under the provisions of this act and which are 94
withdrawn and no longer available. 95
None of the funds herein appropriated shall be used in 96
violation of the Internal Revenue Service's Publication 15-A 97
relating to the reporting of income paid to contract employees, as 98
interpreted by the Office of the State Auditor. 99
If the agency's total authorized headcount decreases from 100
Fiscal Year 2026 to Fiscal Year 2027, it will be the agency's 101
discretion as to what headcounts are removed. 102
Of the funds appropriated in this act, the Legislature has 103
authorized salary progressions in the amount of One Million Six 104
Hundred Forty-six Thousand Seven Hundred Twenty Dollars 105
($1,646,720.00) for the following job families: 106
Inspection Family 107
Facilities and Maintenance Family 108
Engineering Family 109
Transportation Technical Family 110
SECTION 3. Of the funds appropriated to the Mississippi 111
Department of Transportation under the provisions of Section 1, 112
the following amounts shall be available for expenditure in the 113
program budgets as required by Section 27-103-127, Mississippi 114
Code of 1972: 115
Administration and Other Expenses......... $ 65,074,930.00 116
Construction.............................. $ 1,069,042,723.00 117
Maintenance............................... $ 325,000,000.00 118
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Debt Service.............................. $ 66,000,000.00 119
Aeronautics, Rails and other.............. $ 40,000,000.00 120
SECTION 4. It is the intention of the Legislature that the 121
Mississippi Department of Transportation shall maintain complete 122
accounting and personnel records related to the expenditure of all 123
funds appropriated under this act and that such records shall be 124
in the same format and level of detail as maintained for Fiscal 125
Year 2026. It is further the intention of the Legislature that 126
the agency's budget request for Fiscal Year 2028 shall be 127
submitted to the Joint Legislative Budget Committee in a format 128
and level of detail comparable to the format and level of detail 129
provided during the Fiscal Year 2027 budget request process. 130
SECTION 5. Of the funds appropriated in Section 1, it is the 131
intention of the Legislature that Six Hundred Fifty Thousand 132
Dollars ($650,000.00) shall be transferred to the Department of 133
Agriculture and Commerce for the Beaver Control or Eradication 134
Program during the Fiscal Year 2027. 135
SECTION 6. Of the funds appropriated in Section 1 and 136
authorized for expenditure in Section 3, Five Million Dollars 137
($5,000,000.00) shall be transferred by the Mississippi Department 138
of Transportation to the Department of Public Safety Office of 139
Commercial Transportation Enforcement Division for the operations 140
of the Division consistent with Section 77-7-330, Mississippi Code 141
of 1972. 142
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SECTION 7. Of the funds appropriated in Section 1 of this 143
act, the Mississippi Department of Transportation shall expend 144
such funds as necessary to conduct project planning. Such project 145
planning shall apply to all preliminary engineering, right-of-way 146
acquisition and construction projects of the department and, at a 147
minimum, shall consist of policies for the oversight and 148
management of project cost which: 149
(a) Establish a reasonable cost estimate for each 150
project. For purposes of this provision, projects include 151
preliminary engineering, right-of-way acquisition and 152
construction; 153
(b) Capture and retain the initial project cost 154
estimates for comparison with final actual expenditures; 155
(c) Require that any changes to a cost estimate for a 156
project will be reviewed and approved by district or central 157
office personnel. Such personnel shall be responsible for signing 158
any revision, and providing a narrative description of the reasons 159
for approving a revision; 160
(d) Capture the cost of consultants, engineers, 161
attorneys, contract appraisers and other technical and 162
professional contractors used in preliminary engineering, 163
right-of-way acquisition and construction projects. 164
SECTION 8. None of the funds appropriated under the 165
provisions of Section 1 of this act may be expended by the 166
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Department of Transportation for construction of new highways if 167
such highway segment is less than ten (10) miles in length unless: 168
(a) The explanation and justification for letting such 169
a contract for a length of less than ten (10) miles is entered 170
upon the official minutes of the Transportation Commission; 171
(b) The commission, within ten (10) working days after 172
entry of its explanation and justification upon its minutes, gives 173
notice, by United States First Class Mail, and provides a copy of 174
such entry upon its minutes, to the Chairman of the Transportation 175
Committee of the Mississippi House of Representatives and the 176
Chairman of the Mississippi Senate Highways and Transportation 177
Committee. 178
SECTION 9. It is the intention of the Legislature that of the 179
sum appropriated in Section 1, the Department is authorized to 180
provide a protective footwear allowance of not more than Two 181
Hundred Dollars ($200.00) per person annually for Engineers, 182
Maintenance, and Construction Workers as part of their safety 183
equipment. 184
SECTION 10. Of the funds appropriated to the Mississippi 185
Department of Transportation, Four Hundred Fifty Thousand Dollars 186
($450,000.00) shall be used for the Statewide Litter Prevention 187
Program. 188
SECTION 11. Of the funds appropriated in Section 1, not less 189
than Eighty Million Dollars ($80,000,000.00) shall be expended for 190
contracted maintenance overlay and pavement rehabilitation. 191
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SECTION 12. It is the intention of the Legislature that the 192
Mississippi Department of Transportation is authorized to transfer 193
between the various programs in an amount not to exceed ten 194
percent (10%) of the amount allocated in Section 3, except that no 195
transfers shall be authorized which increase the "Administrative 196
and Other Expenses" Program or which decrease the "Maintenance" 197
Program. 198
SECTION 13. The Mississippi Department of Transportation may 199
escalate up to Two Million Dollars ($2,000,000.00) in accordance 200
with the rules and regulations of the Department of Finance and 201
Administration, in a manner consistent with the escalation of 202
federal funds, along with the required documentation of the 203
overtime hours worked. If approved by the Department of Finance 204
and Administration, the Mississippi State Personnel Board may 205
update the authorized Personal Services amount to include these 206
escalations on the compliance reports. 207
SECTION 14. It is the intention of the Legislature that the 208
Mississippi Department of Transportation is authorized to expend 209
an amount not to exceed Thirty Million Dollars ($30,000,000.00) 210
received from other public or private entities as reimbursements 211
for payments made on federal projects. 212
SECTION 15. With the funds appropriated in this act, the 213
Mississippi Department of Transportation shall notify members of 214
the Mississippi Senate and House of Representatives upon the award 215
of projects within their respective districts and at least five 216
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(5) days prior to a public ceremony announcing the award of any 217
grant in their district or any public announcement of ceremony 218
regarding the groundbreaking or opening of a facility, roadway or 219
bridge for which the Legislature has made funds available. Any 220
signage regarding any public event or any new facility, roadway or 221
bridge shall include the following language: "Funds were made 222
available for this project by the Mississippi State Legislature." 223
Further, the signage shall state the four-year legislative term in 224
which the project was funded. 225
SECTION 16. It is the intention of the Legislature that 226
whenever two (2) or more bids are received by this agency for the 227
purchase of commodities or equipment, and whenever all things 228
stated in such received bids are equal with respect to price, 229
quality and service, the Mississippi Industries for the Blind 230
shall be given preference. A similar preference shall be given to 231
the Mississippi Industries for the Blind whenever purchases are 232
made without competitive bids. 233
SECTION 17. The Mississippi Department of Transportation is 234
authorized to dispose of or transfer used cell phones that are 235
obsolete or inoperable to cell phone recycling programs dedicated 236
to providing free phone access to United States military 237
personnel. 238
SECTION 18. In compliance with the "Mississippi Performance 239
Budget and Strategic Planning Act of 1994," it is the intent of 240
the Legislature that the funds provided herein shall be utilized 241
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in the most efficient and effective manner possible to achieve the 242
intended mission of this agency. Based on the funding authorized, 243
this agency shall make every effort to attain the targeted 244
performance measures provided below: 245
FY2027 246
Performance Measures Target 247
Maintenance 248
Number of Acres Mowed (First & Subsequent) 290,000 249
Percent Increase of Acreage Mowed 0.66 250
Slow the Expected Increases of Total 251
Fatalities According to a 5 Year Rolling 252
Average (697 or Less) 726 253
Percent Decrease in State-Maintained 254
Lane Miles Needing Repair or 255
Rehabilitation 0.80 256
Percent of Pavement Needs Met Annually 0.28 257
Percent of 4 Lane Highway Lane-Miles 258
with an Acceptable Pavement Condition 259
Rating 95.00 260
Percent of Interstate Lane-Miles with an 261
Acceptable Pavement Condition Rating 77.30 262
Percent of 2 Lane Highway Lane-Miles 263
with an Acceptable Pavement Condition 264
Rating 86.00 265
Cost per Mile to Maintain State Highways 33,889.00 266
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Number of Bridges in Poor Condition 170 267
Number of Bridges with Timber Components 85 268
Construction 269
Percent of Miles of State Maintained 270
Highways that Meet MDOT Thresholds for 271
Congestion 2.17 272
Number of Lane Miles of State Maintained 273
Highways Requiring Additional Capacity 611.80 274
Cost per Mile to Construct State Highways 25,970,000.00 275
Administration & Other 276
Administration as a Percent of Total Budget 4.17 277
GO-MDOT-Total Number of Page Views 1,400,000 278
Percent Increase in Utilization of 279
MDOTTRAFFIC.com Website 5.00 280
Bonded Debt Service 281
MDOT's Share of Annual Debt Service will 282
Not Exceed 3.75% of Annual Budget 0.74 283
Aeronautics & Rails 284
Number of Airports Inspected 69 285
Number of Grade Crossings Inspected 2,100 286
A reporting of the degree to which the performance targets 287
set above have been or are being achieved shall be provided in the 288
agency's budget request submitted to the Joint Legislative Budget 289
Committee for Fiscal Year 2028. 290
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SECTION 19. The Mississippi Department of Transportation is 291
authorized to accept and expend any grant, donation, or 292
contribution from any individual, public, or private organization, 293
or government entity for purposes of defraying the operational 294
costs of the department. Such grants, donations or contributions 295
shall be received and expended under the rules and regulations of 296
the Department of Finance and Administration in a manner 297
consistent with the escalation of federal funds not to exceed One 298
Hundred Twenty-five Million Dollars ($125,000,000.00). 299
SECTION 20. With the funds appropriated herein, the 300
Mississippi Department of Transportation is authorized to make 301
payments for expenses incurred during prior fiscal years for an 302
amount not to exceed Thirty Thousand Four Hundred Eighteen Dollars 303
and Twenty-eight Cents ($30,418.28). 304
SECTION 21. In addition to all other funds appropriated 305
herein, the following sums, or so much thereof as may be necessary 306
is appropriated out of the following funds in the State Treasury 307
to the credit of the Department of Transportation for the fiscal 308
year beginning July 1, 2026, and ending June 30, 2027: 309
(a) 2022 Capacity Project Fund for the purposes provided in 310
Section 65-1-141.2, Mississippi Code of 1972...................... 311
................................................ $ 400,000,000.00 312
(b) 2022 Infrastructure Match Fund for the purposes provided 313
in Section 65-1-183, Mississippi Code of 1972..................... 314
................................................ $ 40,000,000.00 315
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(c) 2022 Emergency Road and Bridge Fund for the purposes 316
provided in Section 65-1-179.1, Mississippi Code of 1972.......... 317
............................................... $ 40,000,000.00 318
(d) Strategic Multi-Modal Investments Fund for the purposes 319
provided in Section 65-1-901, Mississippi Code of 1972............ 320
................................................ $ 40,000,000.00 321
(e) 2023 Lafayette County Infrastructure Improvement Funds 322
for the purposes provided in Section 65-1-187, Mississippi Code of 323
1972............................................ $ 75,000,000.00 324
(f) 2023 Desoto County Infrastructure Improvement Funds for 325
the purposes provided in Section 65-1-185, Mississippi Code of 326
1972............................................ $ 50,000,000.00 327
SECTION 22. Of the funds appropriated in Section 1, Three 328
Hundred Thousand Dollars ($300,000.00) is provided for the 329
Southern Rail Commission to continue developing passenger rail 330
service for the State of Mississippi. 331
SECTION 23. It is the intention of the Legislature that the 332
Mississippi Department of Transportation shall expend such funds 333
appropriated in Section 21 subsection (a) and (b) as necessary to 334
conduct project planning. Such project planning shall apply to 335
all preliminary engineering, right-of-way acquisition and 336
construction projects of the department and, at a minimum, shall 337
consist of policies for the oversight and management of project 338
cost which: 339
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(a) Establish a reasonable cost estimate for each project. 340
For purposes of this provision, projects include preliminary 341
engineering, right-of-way acquisition and construction; 342
(b) Capture and retain the initial project cost estimates 343
for comparison with final actual expenditures; 344
(c) Require that any changes to a cost estimate for a 345
project will be reviewed and approved by district or central 346
office personnel. Such personnel shall be responsible for signing 347
any revision, and providing a narrative description of the reasons 348
for approving a revision; 349
(d) Capture the cost of consultants, engineers, attorneys, 350
contract appraisers and other technical and professional 351
contractors used in preliminary engineering, right-of-way 352
acquisition and construction projects. 353
SECTION 24. Of the funds appropriated in Section 1, Three 354
Hundred Thousand Dollars ($300,000.00), or so much thereof as may 355
be necessary, shall be derived out of any money in the State 356
Treasury to the credit of the Project Poppy Fund, as created in 357
Section 57-1-631, Mississippi Code of 1972, and allocated in a 358
manner as determined by the Treasurer's Office. These funds are 359
provided for expediting services needed for Project Poppy. 360
SECTION 25. The money herein appropriated shall be paid by 361
the State Treasurer out of any money in the State Treasury to the 362
credit of the proper fund or funds as set forth in this act, upon 363
warrants issued by the State Fiscal Officer; and the State Fiscal 364
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ST: Appropriation; Transportation, Department
of.
Officer shall issue his warrants upon requisitions signed by the 365
proper person, officer or officers, in the manner provided by law. 366
SECTION 26. This act shall take effect and be in force from 367
and after July 1, 2026. 368