AASHTO Journal, 27 February 2015
North Dakota Gov. Jack Dalrymple signed into law a measure providing $1.1 billion in “surge” infrastructure funding, which will mostly go to the Department of Transportation for state highway improvements and to administer grants for county road and bridge projects.
The measure directs most of the money into the infrastructure-stressed Bakken oil region in the western part of the state, but includes some for areas outside the oil patch as well.
Gov. Dalrymple signs bill with new road project funds.Above NDDOT’s normal two-year funding program, the measure sets aside $450 million for the department to spend on the state highway system and another $352 million for the department to handle in county road project grants. Other funds in the $1.1 billion law go directly to cities.
This is the second time the legislature has approved a special early funding measure, ahead of the normal July start to the next two-year fiscal cycle. Lawmakers approved a surge funding measure in February 2013 for the biennial budget, which also included extra money for NDDOT to use over the 2013-2015 cycle.
By getting the money approved for use this far in advance, NDDOT officials said they can launch more projects sooner to take advantage of the northern Plains state’s short construction season. And with state money directed at western North Dakota, NDDOT can use money from the federal Highway Trust Fund to target projects in other areas.
Drawing on a “strategic investment and improvements fund” that collects receipts from state levies on oil, gas and coal production, the emergency funding act makes most of the money available immediately rather than in July.
Had legislators not included the extra DOT money this time, the department would have had to leave some potential roadway projects off the list of contracts it could put out to bid. In recent weeks, many local officials from western North Dakota converged on the state capital of Bismarck to press lawmakers for the surge funding. The state House and then the Senate passed the bill that Dalrymple signed on Feb. 24.
“I applaud our legislative leaders for making this funding bill a priority and all legislators who helped make this funding immediately available,” Dalrymple said. “It was clear that we would again need to fast-track a funding bill so that we can take full advantage of the upcoming construction season, and this major funding package accomplishes that.”
NDDOT Director Grant Levi said in a separate statement that his department “is pleased the legislative body and the governor have decided to make such a significant investment in transportation. Investments will be made on roadways in the state with the resources made available” under the new law.
Levi also underscored the need for road work in the oil patch, saying “from 2010 to 2014 traffic has increased 71 percent on state highways in oil producing counties.”
Since without this bill, the department’s funds would not have been available until after June 30, NDDOT said “some key road projects in western North Dakota and elsewhere may have been delayed until the following year.” Now, though, it will take bids on contracts in March through May, with $285 million in projects bid in March alone.
NDDOT said there is an additional return from the early funding. “Bidding projects early allows contractors to do staff planning and obtain necessary resources needed for construction. This will result in more competitive bid prices,” the agency said.
And since it now can count on early use of state funds in western areas of the state, NDDOT can also bid out projects in central and eastern North Dakota using federal funds.
The measure says the $450 million going into the DOT’s highway fund shall be “for the purpose of construction and maintenance of state transportation infrastructure.” That money can be applied to engineering, design and construction costs incurred on highway projects.
It further calls for NDDOT to administer $240 million for road and bridge projects in 10 oil-producing counties and spread $112 million more among 43 non-oil-producing counties. The county governments must submit funding requests that show how their planned projects would support oil and gas operations or economic development.