Federal slip-up slows construction

MAT-SU -- When Alaska received more than $60 million for transportation projects statewide under the Omnibus Spending Bill passed in February by Congress, it seemed like a great deal for the state. After all, who could turn down the prospect of an additional sum of money earmarked for special projects statewide?

Unfortunately, these earmarks, unlike others of their kind, turned out to be not in addition to, but subtracted from the state's normal share of federal funding.

As a result of this loss, some local projects, most prominently the road improvement on the Parks Highway between Crusey and Lucas streets in Wasilla, have been put on the back burner. Others, however, such as the Glenn-Parks interchange project, are still moving full speed ahead.

The mix-up is reportedly due to some unusual wording in the omnibus bill. The reasoning behind this wording, as well as the resolution of the problem, remains in question.

"Apparently it slipped by somehow," said Jim Colver, deputy borough mayor for Mat-Su, "but I understand it's going to be fixed."

Even if the problem is resolved, however, the earmarked funds won't be coming into the Statewide Transportation Improvement Projects list, or STIP, until around fiscal year '05.

"While it appears that this consequence was unintended by the earmark appropriators in Congress and the recipients making such earmark requests, the impact to the FY '04 STIP is unavoidable," DOT stated in a letter to borough officials, dated May 12.

The loss of this money has created some concern.

"All along we've been told that that money was coming," said Don Shiesl, Public Works director for the borough. "It was certainly anticipated that we would receive it."

Among the most pressing concerns for the money in question is the extension of Seldon Road in Wasilla west to Church Road, thus facilitating east-west traffic. "We're hoping to get started right away on that," Colver said.

The only reasonable way to handle this consequence, DOT's letter stated, was to identify $61.1 million worth of projects statewide that could be put on hold in the communities and regions that were slated to receive earmarked funds. The effects of this lack will be felt all the way from Nome to Sitka, as transportation programs statewide are delayed.

The Valley didn't survive unscathed. The earmarked projects in the Mat-Su Borough included $3 million for road improvements, consisting mostly of money for upgrading substandard roads.

"Without this money, we won't be able to conduct any major road improvements around the Valley during this next year," Shiesl said.

Of this, $1 million was also specifically allotted for Lucille Street and Mack Drive improvements in Wasilla. This project will be put on hold for at least the '04 fiscal year, as well as the $2.8 million right-of-way construction on the Parks Highway from Crusey Street to Lucas Road, according to DOT's letter.

"We are putting the $2.8 million right-of-way phase planned in the STIP for FY '04 on hold for now. If the earmark issue is not corrected, these funds will be delayed to FY '05 or later," the letter stated.

The Glenn-Parks Highway interchange project will not be affected by the earmarks loss, since this project resulted from a special appropriation from Ted Stevens, said Bill Kleebesaddle, manager of the project for DOT.

Colver said DOT had approached the borough with a request that the borough kick in part of the $3 million earmarked for boroughwide road improvements to the high-priority Crusey-Lucas project.

"They've got their hand out to everyone right now," said Shiesl of DOT's desire to obtain the funding that has suddenly come in question from other sources.

Colver said he wasn't sold on the idea of granting borough transportation money to DOT.

"Three million dollars to the DOT is not a lot of money," he said, "but we can do a lot on the local level with it."

Contact Daniel Spoth at daniel.spoth@frontiersman.com.