Fight Over Highway Funds Impacting Kalispell Bypass, Sun Road

The latest fight in Congress — figuring out how to pay for the nation’s multibillion-dollar infrastructure needs — is reverberating in Montana, where federal funding is the lifeblood of transportation projects but is surrounded by uncertainty. The ongoing debate and inaction are threatening delays for the completion of two significant projects in the Flathead Valley, the Kalispell bypass and reconstruction of Going-to-the-Sun Road in Glacier National Park.

The long-awaited bypass, which is fully designed on the north half and ready to be finished over the next two years, has already been stalled while lawmakers grapple with the reauthorization of federal transportation spending. Instead of the alternate route being completed by late 2016, it appears mid to late 2017 is the soonest completion date, according to state transportation officials.

The National Park Service, which has spent nearly $140 million for a lengthy rehabilitation project along the iconic Sun Road, is down to the final stretch but needs roughly $18 million for the last six miles on the west side from West Glacier to Avalanche Creek.

Completing both projects in the timeframe and scope as previously planned could prove difficult if Congress fails to find a solution for its beleaguered Highway Trust Fund, which is the main funding mechanism for America’s roads, bridges and other infrastructure. Roughly 87 percent of highway construction money in Montana comes from the federal government. But the federal trust fund is drying up and failing to cover current highway spending levels. The fund gains revenues from federal gas taxes, but the 18.4-cents-a-gallon tax has not been raised since 1993. President Obama and lawmakers from both parties have declined to support increasing the tax.

While fighting over a solution, Congress has passed 12 short-term extensions in the past six years.

The House on May 19 approved the latest extension, which would allow states to continue to receive aid through July.

A Senate vote is expected Friday, which is the final legislative day before a scheduled weeklong break. The federal transportation program’s spending authority expires May 31.

Faced with lingering uncertainty and potential funding shortages, state and federal lawmakers are calling for a long-term solution that prevents further construction delays across Montana.

Gov. Steve Bullock visited an unfinished section of the Kalispell bypass on May 19 with a group of city leaders, echoing his support for the transformative project and decrying “petty politics” that are hampering state developments.

“We have been waiting a long time to get this done. But we can’t get it done if politics and short-term thinking holds up the federal dollars,” Bullock said.

Joe Unterreiner, president of the Kalispell Chamber of Commerce, told the crowd that completing the bypass was vital to the city’s future.

“The bypass is such a critical piece of infrastructure and we need to keep it moving,” he said.

Completing the bypass will benefit the burgeoning commercial district on Kalispell’s north end while also creating urban renewal opportunities for downtown, Unterreiner said. Roughly 100 local businesses signed a letter that was sent to the Montana delegation supporting a sustainable source of highway funds, Unterreiner said.

U.S. Rep. Ryan Zinke, R-Montana, voted in favor of the short-term extension this week but said he, too, wants a long-term solution.

“The highway bill is one of those must-do bills,” he said.

“Congress right now has no clear answer for how to fund it. I’ve long been an advocate for the highway bill in that I look at infrastructure as an investment and not an expense. I can tell you that an investment today in infrastructure will prevent a lot of the problems of the future.”

Zinke said the federal government needs to remove the bureaucracy in Washington D.C. from the equation, but even then there would remain a shortfall in funds. He said he hopes Congress will be able to come up with a solution and pass a five-year plan in the coming months. He did express disappointment that the Montana Legislature failed to pass an infrastructure bill at the state level that could have helped ailing projects and reduced dependency on the federal government.

“I was disappointed in the Legislature that the infrastructure bill didn’t get hammered out. That was a lack of both sides really trying to get to the solution,” he said.

U.S. Sen. Jon Tester, D-Montana, has been a vocal advocate for passing a long-term highway bill and has criticized lawmakers for neglecting the issue. He said he would reluctantly vote for the short-term extension this week.

“Congress has known for 10 months that this deadline was coming, yet we are missing another opportunity to make meaningful investments in our nation’s aging infrastructure,” Tester said. “A two-month extension will run dry in the middle of construction season and gives almost zero certainty to folks working construction this summer. I’ll support this extension because we can’t let highway projects come to a screeching halt. But it is past time for a long-term bill that will create jobs and make our roads safer.”

Bullock said the persistent short-term extensions are hurting the state’s ability to plan for the future and move forward with projects across the state.

“We need the ability to do long-term planning. We need that opportunity,” Bullock said, adding, “We can’t continue to wait until the last minute to sort these things out. We have significant infrastructure needs all across the state.”

The final phases of the bypass, which are being bundled into one large project that is estimated to cost $40-45 million, were scheduled to go out for bid this month. Administrators with the state’s Department of Transportation were forced to put everything on hold amid uncertainty in D.C. over funding. Now MDT is poised to go out for bid in late August, meaning the bypass could be completed by late spring 2017 instead of the fall of 2016, according to state officials.

“This is a very important project for this community. It will change this landscape dramatically,” Ed Toavs, regional administrator for MDT and project leader, told the crowd alongside Bullock and Mike Tooley, director of MDT.

When completed, the final 3.5 miles of road will feature four lanes resembling an interstate highway that travel from Reserve Loop near Glacier High School to U.S. Highway 2, where the south portion of the bypass currently ends, Toavs said.

“There’s nothing that’s going to stop it except the funding. We’re ready to go today,” he said.

“We need to finish this project.”