PIERRE, S.D. January 4, 2016– The South Dakota Department of Transportation (SDDOT) paid out nearly $50 million in state highway funding to counties and Class I city governments in 2015.
These state funds replaced federal highway fund dollars, allowing counties and cities greater flexibility for funding road and bridge projects. Funding for these payouts came as a result of the road and bridge funding bill passed during the 2015 legislative session.
A portion of the federal highway funds South Dakota receives is allocated to local governments. However, these dollars are restricted for use only on federally approved routes.
Following the passage of 2015’s Senate Bill 1, SDDOT began exchanging those locally available federal funds for state funds, placing the burden of meeting federal requirements on the state and allowing more options for counties and cities. The state funds paid to local governments in lieu of the federal funds are not restricted to particular highway projects or segments of road. Custer County received a total of $558,362.54.
“These funds will provide counties and Class 1 cities more resources to improve their highways and bridges,” said SDDOT Secretary Darin Bergquist. “It should help them to immediately address critical infrastructure needs.”
Additional state funds will be provided to local governments and exchanged with federal funds over the next several years.