J00J00 Maryland Transportation Authority Fiscal Year 2026 Operating Budget Response to Department of Legislative Services Analysis
DLS Budget Analysis Issues (continued)
2. Impacts of the Francis Scott Key Bridge Collapse (Page 25) MDTA should discuss the anticipated timing of receipt of the funding and if any funds have been received to date. MDOT Response: Anticipated funding sources include insurance proceeds, federal emergency relief quick release funds, federal emergency relief funds, toll revenues, and any recoveries from the M/V DALI’s owners. On August 5, 2024, the MDTA received $350 million from its property and business interruption insurance carrier. Insurance proceeds have funded $25 million of debris removal. A $10 million emergency relief quick release draw will occur this week. After the initial $60 million federal emergency relief quick release are utilized, insurance proceeds will be utilized until exhausted, and then federal emergency relief funds will be utilized. Within the MDTA’s financial forecast, future emergency relief funds are assumed to be received one year after the reimbursement request. The twelve-month timeframe is a result of undefined timing by the Federal Highway Administration and federal funding uncertainties, including the timing of semiannual federal appropriation requests. That said, the State of Maryland is continuing to prosecute its claims against the M/V DALI’s owners and operators, the parties solely responsible for the destruction of the Francis Scott Key Bridge and all resulting damages, costs, and losses. It is the State’s intention that the DALI’s owners and operators will be the primary source to fund the cost to rebuild the Bridge. Other sources of funding to rebuild the Bridge will be accessed if necessary, recognizing that full compensation should be obtained from the DALI’s owners, operators, and insurers.
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