News Item #1583

State lawmakers and the paving industry warned in September that KYTC had awarded dramatically fewer road projects, especially repaving, in summer 2026 than in the previous two summers. Rep. Jason Petrie pointed to fast-growing Warren County and Sen. Steve Rawlings to Northern Kentucky as areas falling behind. Contractors said crews have been cut to four-day weeks and that the paving season was closing before winter. Kentucky Association of Highway Contractors director Chad LaRue said the cabinet appears to be holding back to protect its cash balance. Cabinet officials said the internal road fund dropped to $32.9 million on Aug. 19, well below the $100 million they like to keep, before recovering. A cabinet spokesperson had earlier blamed budget constraints set by the legislature.

Earlier, in July, the free-market Kentucky Forum for Rights, Economics and Education reported that KYTC awarded more than $1.3 billion in single-bid asphalt contracts from 2023 through 2025. Lexington-based L-M Asphalt Partners received more than $424 million of that, Scotty's Contracting $214 million in western Kentucky, and Mountain Enterprises $182 million in eastern Kentucky. The think tank called the pattern "tacit collusion," with companies not bidding across county lines. KYTC said it prioritizes competition, compares bids against internal estimates, and rejected 535 single-bid proposals between 2020 and 2025.

Sources:

• Kentucky Lantern: State lawmakers, road paving industry both concerned about lack of state road projects 
• Kentucky Lantern: Analysis shows evidence of 'asphalt monopoly' in Fayette County, think tank argues