The program, which is administered by the Department of Transportation (DOT), assists local governments in improving seriously deteriorating county highways, town roads, and city and village streets. We completed a review of the discretionary component of the program, which provides state funding for projects that are advertised, contracted, and administered at the local level. From fiscal year (FY) 2023-24 through FY 2024-25, DOT awarded 119 grants using $40.8 million in discretionary funds. In general, state grants involve management of the pre-award, active, and closeout stages. We identified pre-award stage concerns related to rule promulgation, application scoring and review, and grant awards. We also identified active stage concerns related to the pilot program, reimbursements, and monitoring. Finally, we identified one closeout stage concern related to program outcomes. We make 21 recommendations to DOT for improvements. We also include one issue for legislative consideration.
