The Nevada Department of Transportation (NDOT) recently announced that it has supported 9,099 construction jobs over the past fiscal year (from October 2021-September 2022) based on contracts that were approved over the past federal fiscal year. In other words, Council of Economic Advisers formulas were used to estimate the number of direct, indirect and induced jobs supported by NDOT transportation contracts and agreements.
NDOT’s data shows that miles traveled on Nevada roads increased approximately 30 percent in its most recent ten-year period, with another 30 percent increase expected over the next decade. Meanwhile, the federal and state fuel taxes which fund the majority of the state’s highway network have not increased since 1992, leading to approximately $530 million annually in unfunded state transportation needs.
Federal transportation funding has traditionally been authorized under short-term funding extensions, leaving NDOT without long-term funding security to efficiently plan, design and deliver the transportation needs of the state’s growing population. However, the new funding in the Bipartisan Infrastructure Law provides NDOT five years of funding certainty, as well as a 20-30 percent increase, to advance transportation improvements to help drivers and the economy over coming years.
NDOT will use publicly established transportation priorities developed within the data-driven One Nevada Plan to make performance-based decisions on future transportation projects and programs to support Nevada mobility, safety, jobs and economic development. Its priorities include meeting long-term needs of all transportation users- such as bicyclists, motorists, pedestrians, and public transit users- with a well-preserved, sustainable and safe state transportation system supporting the state’s economy.
NDOT is experiencing record-level vacancies and recruitment challenges, in part due to disproportionately low state employee pay compared to other local public agencies throughout Nevada.
This summer, NDOT’s overall vacancy rate stood at 21 percent, or nearly 400 jobs. Among its most critical functions is the maintenance of Nevada highways, making NDOT highway maintenance professionals vital to its mission of keeping Nevadans safe and connected.
As of September 2022, NDOT’s vacancy rate- specifically for permanent highway maintenance workers in northwestern Nevada- is approximately 30 percent, with roughly 50 unfilled permanent highway maintenance positions in the region. This figure increases to a 34 percent vacancy rate when including NDOT equipment shop staff. While NDOT continues to perform its core functions, the Department’s challenge in keeping employees is beginning to impact its ability to maintain roads and bridges; respond to emergencies; and otherwise keep road users safe and connected.
As state employees, approximately 25 percent of NDOT’s workforce makes under $40,000 per year and 57 percent make under $50,000 per year. In the past 14 years, state employees have only seen an eight percent increase in salary while the dollar has shown a cumulative inflation rate increase of over 37 percent over that same period. And according to the Salary Comparison Studies completed by State of Nevada Division of Human Resource Management in 2021, state workers make on average 23 percent less than their counterparts in local public agencies. This is further compounded as retirement and health premium deductions for state employees are generally much higher than for employees in local public agencies where those benefits are often fully subsidized. This contributes to an even wider gap between the salaries of state workers and employees at local public agencies.
However, The Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Law) will supply $2.5 billion to the Nevada State Highway Fund over the course of five years. Over this current year, that means an additional $83.5 million- an approximate 21 percent increase- in federal transportation funding distributed to Nevada. Funding will ultimately increase to $520.7 million in fiscal year 2026 which is a 31 percent increase over previous funding when the legislation expires.
Also included in the transportation bill is funding for bridge preservation to help maintain the state’s 2,100-plus bridges amid a $171 million backlog in bridge preservation work that is statewide.
One example of a project that affects Mineral County is the repaving of approximately 12 miles of U.S. 6 between the Nevada-California state line and State Route 360 which includes truck parking improvements.
It is estimated that every $1 invested in public transportation projects can generate between $2-$6 in local economic activity.
