AASHTO Journal, 8 May 2015
Citing uncertainty over federal funding, the Arkansas Highway and Transportation Department withdrew nine construction projects worth an estimated $120 million from its schedules June 9 contract bidding, bringing its total of delayed projects so far this year to 70 that are valued at $282 million.
The AHTD took the action as the Highway Trust Fund’s program authority is currently set to expire May 31, so the state agency cannot count on normal federal reimbursements coming for project costs when contractors would need to be paid.
“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,” said AHTD Director Scott Bennett. “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.”
In Washington, several key lawmakers have said Congress will extend the trust fund before it leaves in late May for an extended Memorial Day break, but it is not clear how long an extension will run.
And until it is in place, some states like Arkansas have to make their project plans based on current federal law. “We can’t assume that since Congress has always fixed the Federal Highway Trust Fund at the last minute, they will do so again,” Bennett said. “Such a piecemeal approach to highway funding in America is not healthy for our nation’s aging infrastructure.”
Already, at least five states have publicly detailed project delays that have put more than $1.4 billion worth of work on hold that would otherwise be taking place this summer. Some reports have put the nationwide total over $2 billion for delayed highway work due to trust fund uncertainty. Bennett indicated that if Congress opts for a short-term trust fund extension, his state could within a few months be back to delaying projects again.
“Our only choice is to withdraw projects from bid openings,” Bennett emphasized. “Congress must commit to reaching a long-term solution so we aren’t back at the crossroads again in a few months. The band-aid approach doesn’t work. It only covers up the problem. It does not solve the problem.”
The AHTD also updated its project delays on the “Nation at a Crossroads” infographic website produced by the American Association of State Highway and Transportation Officials. That site features a “state impact” section that shows how federal funding affects transportation investment for states that provided data.
“Arkansas is among the states helping AASHTO tell the highway funding story,” the agency said, “by routinely updating its section of the site with the latest information as it becomes available.” And it said the federal funding disruptions have put at risk Arkansas infrastructure that includes $490 million in highway projects, $32 million in transit projects and an estimated 11,000 jobs.