story by Michael Tilley
mtilley@thecitywire.com
Arkansas highway officials have again pulled construction projects out of the bid process because of uncertainty with federal funding. To date, 70 road projects totaling an estimated $282 million have been delayed, with 11 of those in the Fort Smith and Northwest Arkansas areas.
The Arkansas Highway and Transportation Department announced Thursday (May 7) that nine projects were pulled from a June 9 bid opening. The agency announced March 24 the withdrawal of 56 projects with a value of at least $112 million.
“Not only have we been forced to withdraw $282 million from our bid openings in 2015, but there are only 24 days remaining until obligation authority expires for MAP-21,” AHTD Director Scott Bennett said in a statement. “We operate on a cash basis and are not willing to take risks that would jeopardize the progress of any of our Federally-funded projects. To do otherwise is not being fiscally responsible.”
The delays, which are also occurring in other states, is the result of inaction by Congress to address a shortfall in the federal Highway Trust Fund. The fund is on average the revenue for 52% of all highway and bridge capital investments made each year in the states. Money for the fund is set to expire May 31 unless Congress acts.
At risk in Arkansas for Federal Fiscal Year 2015 is 120 projects with an estimated construction value of $490 million. The absence of a long-term reauthorization bill places 130 projects at risk in Arkansas for Federal Fiscal Year 2016 with an estimated construction value of $520 million.
According to the U.S. Department of Transportation, the highway account part of the trust fund ended March with a balance of $8.125 billion. The fund paid out $2.542 billion for highway projects. The mass transit part of the trust fund ended March with a balance of $2.679 billion, and paid out $918 million in the month.
POLITICAL PRESSURE
Also on Thursday, the American Road & Transportation Builders Association (ARTBA) and the American Public Transportation Association (APTA) launched a radio campaign in states and Congressional districts of House and Senate leadership. According to a statement from the two groups, the radio spots will urge “key members of Congress to stop playing games with federal transportation funding and find a permanent solution for the federal Highway Trust Fund (HTF).”
The radio blitz is designed to put pressure on the members prior to a May 31 funding deadline for the trust fund.
“With just weeks to go, congressional leaders have still not reached agreement on a course of action. The continued uncertainty is causing states to delay or cancel transportation improvement projects,” noted a joint press release.
Members of Congress targeted with the radio spots are: Senate Majority Leader Mitch McConnell, R-Ky.; House Speaker John Boehner, R-Ohio; Senate Minority Leader Harry Reid, D-Nev.; House Minority Leader Nancy Pelosi, D-Calif.; House Ways & Means Committee Chairman Paul Ryan, R-Wis.; Senate Finance Committee Chairman Orrin Hatch, R-Utah; House Majority Leader Kevin McCarthy, R-Calif.; House Majority Whip Steve Scalise, R-La.; and Senate Finance Committee Ranking Member Ron Wyden, D-Ore.
FORT SMITH, NWA PROJECTS DELAYED
Following are the announced road project delays in the Fort Smith metro and Northwest Arkansas.
Northwest Arkansas
Benton County
Sulphur Springs-Spavinaw Creek overlay project
Springtown-Highway 279 overlay and shoulder work
Carroll County
County Road 704-west of Highway 103
Highway 62-Indian Creek overlay project
Madison County
Washington County Line-east overlay
Washington County
Razorback Road-Garland Ave.
Fort Smith region
Franklin County
Highway 352-Rock Creek overlay project
Johnson County
Highway 315 South overlay
Logan County
West of Highway 393-Yell County Line overlay
Sebastian County
Highway 10-Flat Rock Creek overlay
Scott County
Polk County Line-Highway 71 overlay