Iowa DOT: $9.1 million expense handled properly

The Iowa Department of Transportation was justified in spending millions on a roadside assistance program without notifying its oversight commission, a staff attorney told the Iowa Transportation Commission on Tuesday in Ames.

Iowa Code does not require external approval for expenses, even high dollar amounts, when it comes to regulating the highway system, said David Gorham, general counsel for the Iowa DOT.

'When you look in terms of the planning/policy function of the commission, relating primarily to construction, maintenance and improvement, the Highway Helper does not fall within that category,” Gorham said.

The issue came to the forefront in July after lawmakers questioned commission members about spending $9.1 million to expand Highway Helper shortly after passing a 10-cent-per-gallon gas tax increase, against some constituents' wishes, to fix rundown roads and bridges.

Commission members said they had no knowledge of the expense and had no way to defend it.

'It makes all commissioners look a little silly,” said Commissioner John Putney of Gladbrook. 'It makes us look like we don't know what is going on.”

At times, the commission and the DOT have intertwined functions, but other times they are separate, Gorham said.

Commission authority extends to setting broad transportation policy, including approving the five-year, $3.2 billion highway plan. The Iowa DOT is charged with regulating the road system, and safety is the No. 1 priority.

This puts the Highway Helper program, which was being expanded to Cedar Rapids, Council Bluffs and Des Moines, within the agency's internal discretion, he said.

Commissioners questioned whether their role provided a false sense of oversight for public transportation spending.

'One thing I don't want my name on is not spending money wisely,” said Commissioner David Rose of Clinton.

In the back pages of the five-year plan is an additional $600 million-plus of allocations for loosely identified work, such as 'outside spending,” for which commissioners have little say other than giving a stamp of approval as part of the larger plan.

'The five-year plan included funding, and the funding was then used to expand the Highway Helper program,” said Commissioner Daniel Huber of Davenport. 'It wasn't a topic that was discussed by the commission previously.”

Huber said he learned it is the department's responsibility to operate the system, but he will ask more questions about the back of the plan when it comes up for approval next year.

Rose suggested setting a dollar threshold for projects to come before the commission. Some public agencies require an additional layer of approval for certain dollar amounts.

'Staff could go out and spend $50 million on maintenance or something and we wouldn't have a say,” Rose said. 'I thought there should be a dollar amount.”

Rose said he was hopeful the discussion will increase communication.