Legislative Session: MDOT Executive Director Brad White

Extra Mile Podcast: MDOT Executive Director Brad White

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*INTRO MUSIC*

(Paul Katool) That’s nearly 2 billion and that's money that's going to be spent on improving safety, enhancing mobility and improving economic growth and development in the state of Mississippi.

(Will) Yeah. And with this historic funding from the legislature, new construction will be popping up all over Mississippi.

(Drew Hall) MDOT presents the Extra Mile Podcast.

(Brad White) Men and women of the Department of Transportation are up to the task and up to make sure that we deliver a product that the taxpayers can be proud of. So, I'm ready for us to go to work.

(Paul) Welcome into the latest edition of the Extra Mile podcast legislative session presented by the Mississippi Department of Transportation. I'm MDOT Deputy Director of Public Affairs, Paul Katool, and as always, I'm joined by my co-host, Will Craft. Who is the director of public affairs here at the agency and will we be truly zooming along in the legislative session of a four-month session this, uh, this year.

So, lots of stuff going on and we wanted to bring in MDOT executive director Brad White to kind of update us on what's going on in the MDOT world. Brad, thank you for joining us. I know you were fresh off kind of a speaking tour. You hit, you hit a media blitz. Kind of tell us how that went. I know you were promoting the MDOT legislative agenda.

(Brad) Right. Well, I think it went well. Uh, everybody was very gracious to us and gave us a lot of opportunities to have platforms to kind of talk about our needs. Uh, obviously we're like a lot of other people, our needs all come down to funding, but it's not just having them. but having the funding in the right way that allows us to run our program successfully.

As you know, we run a reimbursement program. We spend our state funds out front. When the Federal Highway Administration is able to guarantee that we've built everything or doing everything to their standards and following their regs, they then reimburse us. So, our state revenue is key to being able to access the federal funds and being able to make that program work.

Our, our state funds have been somewhat flatlined for quite some time, and so we've been working with the legislature in hopes of finding a way to modernize that, uh, funding model to, to have it come from a more diversified set of streams of revenue, so all our eggs aren't in the one basket of the fuel tax.

I think that's safer and allows us to respond better when the economy has ups and downs. But also, um, living within our means and providing them with opportunities that shows that we can live within the state's current budget and still by identifying a multitude of sources of revenue that collectively could make up the deficit that we've we've had. That's key to us because we want to keep the capacity program running and we want to continue building big projects that add efficiency to our system but if our funding stays flat.

We're going to be faced with some of the same decisions commissions were back 12-15 years ago when you can't fall behind on your maintenance but so much and maybe having to look at diverting all our funds back to maintenance. So that's the conversation we've been trying to have and trying to convince our legislative leadership that this is a core function of government.

It's something that, I believe, one of the few things that taxpayers expect to receive from, uh, the taxes that they pay. And, um, our ability to deliver the product to the taxpayers in the way that they want is all going to hinge on having the resources and the tools with which to do it. So, hopefully, we'll be successful before the legislature's out and identifying some additional streams of revenue that like I said, collectively joining with the fuel tax would allow us, uh, to move ahead with the programs that we have.

(Will) Yes Sir, and you know, you mentioned a couple of things there. Let's break out One or two of those talking about the the revenue source specifically. You know, I think maybe we get through some of these deadlines here and some of our stuff still moving forward. Kind of what's the plan? As far as getting through or I guess what has just happened as far as deadlines and then moving forward?

(Brad) Well, I mean where our struggle is right now is making sure that we keep a vehicle alive in the legislative process through these deadlines. That language could be added to that, uh, would allow for us to create these streams of revenue and to, to kind of fix our shortfalls.

There were some bills that were, um, introduced that directly would create these different, uh, directions of funds to us, to our capacity program and to maintenance. Unfortunately, they did not pass through the, uh, first deadline in the Senate. The House does have, uh, legislation alive that's got the appropriate code section so that the conversation can continue.

And I'm really encouraged by that. I think that our obstacle is that there are, or those in the legislative leadership that has kind of an aversion to diversions. And I understand that. They like to appropriate the funds out annually and not set things on cruise control, so to speak. But, when you're trying to run a program that requires reoccurring money, we’re not a entity that can generate our own funds.

So, the only way for the legislature to provide us, uh, reoccurring revenue is through some type of diversion. And so, uh, I think that's our biggest challenge, is to convince the legislature. Some in the leadership that, that this is not only a core function of government, something needed, but it's also the only manner in which we can have reoccurring revenue.

And so, to have a, a position against diversion is to have a position against reoccurring revenue. And, uh, it's still a long way out before the end of the session. And this is what the legislative process is, is a process of conversation. And, uh, you know, I believe that we must be accountable for what we've done.

And I've asked the legislative, uh, leaders on both sides of the Capitol to call us over and let us give explanation. You know, facts are stubborn things. And we can show the numbers that show what type of, uh, funding deficit we're running as a result of inflation that's come about as a result of trying to run the two maintenance programs in the highway part of highway part of our organization and allow us to lay the facts on the table.

And I believe that they speak for themselves. So, the commissioners and myself and others on our team are highly engaged in trying to have those conversations and make sure that we keep this conversation going. Uh, to the point that hopefully it will result in, uh, what we're asking for.

(Will) And while, you know, I just want to make a comment on that, you know, uh, it seems like a great success just having those conversations taking place, um, looking at sustainable revenue for the future, you know, um, I think, you know, we, we obviously want to get across the finish line a little differently, you know, but, um, Um, uh, big props, major success, I think, just having that conversation going.

(Brad) I think that's a, and I think that's a really good point, uh, that, that I want to be sure all of the members of the MDOT family understand. Uh, everybody that we deal with, uh, in the capitol, from the governor to the lieutenant governor, speaker, and the membership, committee chairman, are pro transportation, uh, they've had open door policies, they, they allow us to sit at the table.

And, and we can have this back-and-forth dialogue with all of us trying to find a solution to the issues that we're facing. Uh, and with that process, you're going to have differences of opinion. But that's what makes the world go around. And I'm confident that we can provide the data to show that what we're asking for is, uh, is something that's sensible.

And something that will, would help us better serve the taxpayers. The other thing that I want to remind everybody of is, all the traditional things that have been on the table is kind of obstacles to us getting money. We've been very successful in removing. We've created funds at the Department of Finance and administration that, as you know, is under the purview of the governor for capacity for maintenance for federal match.

So, the Legislature now has a mechanism in place that they can put funds in an account. That by force of law, regardless of who the director is or who the commissioners are, they can know that 100 percent of those funds will go directly to the projects that their constituents care about. Uh, there's no threat of us using that on a building or on vehicles or any of, of those type things.

And I, I think that that is a, a tremendous step forward in our ability to, to give them confidence in, in what they're doing and confidence in what we're going to do with the resources they give us. So, uh, I'm, I'm hopeful that, that we'll end on a good note. We've not asked the legislature for any specific dollar amount.

Uh, I feel like if we can make steps toward modernizing this funding model, that the money will take care of itself. And, um, I'm hopeful that that's what we'll be able to do.

(Paul) And like Will said, shout out to everybody working on this initiative. Very worthy of course, uh, shifting gears a little bit, another, uh, another item kind of going through the, uh, the process.

We had Jessica Dilley on the show last, last week. And she was talking about her division and how she deals with, uh, the design bill process. So, I understand there's a bill kind of going through that's going to help us with that.

(Brad) Yeah. Uh, it, it's met with a lot of support, um, that passed the house, I think 121 to nothing.

Somebody was absent that day. I expected to come out of the Senate the same way. Uh, it's just another opportunity for us to catch up with surrounding states and taking advantage of these fellow federally authorized and sanctions of alternative methods of delivering a product. That we currently haven't got the authority to do.

And so, it's giving us more tools in the toolbox that will make us more effective in our ability of delivering the product. And I think it does that by virtue of the fact that we're able to mitigate risk out by bringing in the contractors, designers, and people on the front end. And, and working through, uh, what the project's flow will be like and what the details will be.

And at the end of the day, when that's done, we believe that that can allow us to sometimes deliver the project quicker and certainly more, uh, cost efficiently. So, I, I haven't met anybody that has resisted this notion. Of adding to our efficiency. So, I expect that bill to sell through. The governor was kind enough to tout it in the state of the state.

Uh, so I think that we've got support from the governor's mansion down and trying to give us this, these extra tools. And Jessica does a wonderful job and explaining those needs and being able to prepare all the things that again, gives the legislature confidence in what we're saying. So, I've, I Tremendously appreciate the work that she does and the other staff members that have really made it possible.

(Paul) Good to hear that everybody's on the same page on that one for sure.

(Will) Cheaper and faster. Those are the two words right there we're going to hang our hat on for design.

(Paul) Hard to argue.

(Will) That's right. Um, just a couple other notions, or notions, a couple other things that have been going around floating through the legislative session and other things.
Capacity program, a big one that we got last year, uh, revitalized, I believe that was only a year ago, time flies, but, uh, capacity program still going forward, moving great.

(Brad) Yeah, they gave us last year one time money. Uh, that would be dedicated to the construction of those projects that were next on the list.

And it was something like 420 million, I believe. And, uh, we started, in fact, in part of last calendar year, awarding contracts on those projects. Highway 49 in Harrison County was the first. I think this spring, at some point, we'll have Highway 15 in Tippah County. Uh, you've still got Highway 19 in Neshoba.

You've got an interchange over in Warren County. Uh, so there are other projects that will be coming down the pike. But this is also where our discussion for reoccurring revenue comes in. I don't believe that one-time money is something you can count on. And you certainly don't use one time money on reoccurring expenses.

And that's why we asked the legislature that if they were going to give us one time money to put it on the construction cost so you could put one time money on one-time expense and and move those projects along. Eventually, the one-time money is going to run out. And that's going to pose a real problem for the capacity program.

If we don't have the reoccurring revenue to continue moving because we can't afford to fall behind on the maintenance of the existing investment, the taxpayers have of our, our system. So, um, this session is going to be critical for the capacity program. I mean, the, the, when the commission had to abandon that program 12 years ago, That's primarily why you ended up with traffic problems on 49 and Richland or I 55 into DeSoto County and interstates across the coast or I 20 over in Warren County is because the program that's designed to, to look 20 years out into the future and build a system that is being proactive to what the traffic projection growth are.

Rather than reactive, was basically nonexistent unless we got some federal grant that was able to piece together the money to build it like the Greenville Bypass was done. So, uh, the state cannot afford for that program to be abandoned again in the name of maintenance. But without proper resources, that's what would happen.

So, uh, the good news is, I think, again, that all the leadership recognizes the importance of that program, recognizes that our economy drives on our transportation system, and having an efficient system that's safe and can move people and goods throughout the state quickly and efficiently is also key to economic development.

So I'm kind of getting on the soapbox a little bit, but, but, um, We are about to award contracts for a lot of really big projects around the state that are going to be great to have and will illustrate the importance of the capacity program, but we've still got a lot of needs that are in the pre-construction phase that we're trying to bring forward to construction.

Uh, and it's just going to be, um, a shame if we do that and then there's no revenue through which to build it. So, that's the, that is the weight of the conversations we're having now in the legislatures trying to make sure that, that we provide for that so that this core function of government can appropriately do what it's supposed to do.

(Will) Has there been a, didn’t think to ask about this before we got started. There may not be any news but has there been any conversations about sports betting or lottery, any changes.

(Brad) Well, there was a bill that came out of the house that put a lot of that Sports betting mobile sports betting I think into the ERBR program, which is all on local system Roads and bridges we administer the program, but our system doesn't receive any benefit from it. And that's why we're here still in the air of what that bill might look like if it makes it through the Senate.

Uh, there has been discussions about the lottery and re looking at that formula to make sure that it's, it's being used at its most and best ways possible. And, uh, obviously conversations about unobligated portions of the use tax and other streams of revenue that, uh, the portions that they do obligate goes to infrastructure related matters, uh, with the rest going back into the general fund.

And there are conversations about taking some of what goes back into the general fund and devoting it to one of these programs, maintenance and capacity. So, um, there's good conversations going on. We'll just see where they land.

(Paul) There you go. There you go. So public affairs, we put out the job postings on social media.

We've we've gotten a lot of these lately and know, you and your leadership team have worked really hard to kind of cultivate a great working environment here. Uh, talk about coming to work at M dot kind of pitch everyone on that.

(Brad) Well, it's a wonderful place to work. It may sound cheesy, but I mean, it really is a family atmosphere.

In my opinion, I worked here as a young person 25 years ago, and it was the culture that the agency had even then that made me want to come back when the opportunity came up for me to be director. And we have tried very hard to create an environment that people would enjoy coming to work. And one of the things that I'm most proud of is that we've been successful in adjusting salaries and trying to get it to where we can retain good people.

That want to work here, but for them to be able to provide for their families and enjoy life with the money that they make for their services and also recruit in additional folks so that we can build back our maintenance forces so we can build back our professional staff throughout the building. And we've made, I think, four salary adjustments so far in the last 2 and a half years. We've got another one planned coming up. Uh, we're trying to be very responsible in the way that looks because the legislature could shut that down at any minute, so we're not just throwing money, uh, at salaries, but trying to be very strategic with how we address it so it could withstand scrutiny.

And I believe what we've done, I could go before any legislative body or peer or whomever and, and defend what, what we've been doing to try to, to address the salary inequities that we've had throughout the agency. But I'm real proud of, of where we've, we've, where we've come, but I'm also proud looking into the future about where we want to go to continue making those adjustments to, we spend too much time here not to be happy.

And the work that our employees do. It really contributes to the overall well-being of the state as a whole and those that travel through the state. And so, you get what you pay for. And we want to make sure that we have competitive salaries that allow us to keep good people and recruit good people so that we can deliver good products.

(Paul) Hey, listen, we would say we would say this if you weren't here, but it really is a great place to work. If you want to check out any of those jobs Go to GoMDOT.com/careers, lots of good engineering jobs, everything, you know, in between there. So go check that out.

(Brad) And we also try to provide a path for people to have a career path.

So when, when you, when you come into the part of the MDOT family, it's important to those of us in the leadership that, that we help people continue to increase their value and continue to have a path to grow and a path to, to add to their skill sets in a way that increases their value for the workplace, whether that remains here or whether that be elsewhere.

Uh, so we believe in investing in our people.

(Paul) Excellent.

(Will) Yeah. Folks, if you see them out there, you see the job postings, like and share and give them, uh, give them a comment or whatever. Tell your family, tell your friends, uh, we are hiring open for business.

(Paul) Yeah. Anything else Will?

(Will) I think that does appreciate the heat check, Brad, legislative session.

Everything's rocking along. We'll, we'll try and stay in tune, and we'll certainly touch back again. Uh, end of April, uh, make sure everything ironed all the way out.

(Paul) Yes sir. Looking forward to catching, uh, catching later in the session for sure. So, we'll go ahead and wrap things up right now. We want to thank our listeners, our viewers for tuning into the extra mile podcast.

You can watch and listen to episodes by visiting GoMDOT.com/TheExtraMile, follow us on social media @MississippiDOT is the handle there. We want to thank our producer editor Drew Hall for making things go behind the scenes and remember to drive smart out there on Mississippi highways.

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