Construction continues despite budget shortfalls
SANDERS COUNTY – The Federal Highway Trust Fund, which has served as the main route of federal funding to highway projects throughout the nation since the early 1990s, is running out of money putting the future of transportation projects at risk.
However, ongoing road improvement projects occurring throughout Sanders County during this year’s summer construction season will not immediately be impacted by the budget shortfall facing the Federal Highway Trust Fund.
“All projects that are currently underway will be finished and contractors will be paid,” Lynn Zanto, planning administrator of the rail, transit and planning division of the Montana Department of Transportation, said.
Zanto said it was the future projects, including summer road construction planned to occur in the summer of 2015, which would be impacted if Congress does not address the depleted funds of the national program.
MAP-21 (Moving Ahead for Progress in the 21st Century), the current two-year federal transportation legislation, will expire on September 30, 2014.
“If Congress doesn’t find a solution and the current situation goes on longer, we would have to reexamine projects scheduled for coming years,” Zanto said.
The Federal Highway Trust Fund, which is funded largely through federal gas and diesel taxes, is a reimbursement program responsible for a number of highway projects throughout the state and the rest of the country.
According to Zanto the state of Montana incurs the costs of various transportation infrastructure projects and is then reimbursed through the existing federal program.
“In Montana, a state with low population and one that’s pretty rural, federal funds are very important for our roadways,” Zanto said.
Few states in the nation benefit more from the existing fund structure than the Treasure State.
According to the non-partisan Pew Research firm based in Washington D.C., only Alaska and Vermont receive more financing from the federal program.
Alaska receives $7 for every dollar it sends to Washington, while Vermont receives $5 for every dollar they send to the federal government.
Along with Montana, North Dakota also receives $3 for every dollar levied by the federal government.
The program is not directly as advantageous to a number of other states, with Texas, Michigan, Indiana and South Carolina receiving less money back through the program than they send to the nation’s capital.
Though the Federal Highway Trust Fund accounts for a large portion of the funding, which drives road construction projects in Montana, there is also a state tax on gas and diesel used to maintain the state’s transportation system.
“The state tax makes sure the cash balance in the account stays at a healthy level,” Zanto said.
The special account created from the state tax ensures Montana can deal with fluctuations and temporary budget shortfalls.
However, Zanto noted if Congress does not address the ongoing budgetary issues it would impact projects in the coming years.
The current federal gas tax levels supporting the highway trust fund (18.4 cents per gallon of gasoline and 24.4 cents per gallon diesel) have not changed since 1993.
According to government reports, a combination of inflation and the rising popularity of low emission vehicles with better gas mileage have pushed the federal fund towards insolvency.
The House of Representatives made the first step towards avoiding the looming crisis by passing an interim fix on Tuesday, July 15.
The temporary measure, a short-term $10.8 billion bill ensures the fund does not run dry when current legislation expires at the end of September.
The House passed the bill with a 367 to 55 vote.
The Senate has not yet voted on the issue.