Cut to highway funding means delay in U.S. Highway 95 work

COEUR d'ALENE - The road is long, with many a winding turn. And funds to finish widening it will come from who knows where.

The Idaho Transportation Board voted last week to dramatically slash the amount of money it is requesting the state to borrow in 2009 for major transportation projects.

As a result, continued funding to widen a massive section of U.S. 95 between Coeur d'Alene and Sandpoint into a four-lane freeway will not be included in the package.

The ITB cut down its bonding request from $299 million to $125 million. All of the funding, which had originally included dollars for the U.S. 95 plan, will go toward projects in southern Idaho that are prepped for construction and labeled top priority.

"We found (the transportation department) didn't spend what we gave them last year because projects were still tied up with environmental studies or things like that, so we'd rather have them put it on projects they can spend money on now," said Rep. Jim Clark, R-Hayden.

The bond request is part of the $998 million GARVEE bonding project. Through the project, the state uses GARVEE (Grant Anticipation Revenue Vehicles) bonds, to borrow against future federal highway allocations.

The more conservative request will ensure the state can pay back its debts in these rocky economic times, according to a statement the ITD released last week.

But the reduced request will also mean no funding for construction in the Chilco and Athol areas on the Garwood-to-Sagle project.

The project, originally designed to span a 31-mile, 12-interchange highway, was cut out of the bonding request because it isn't yet at construction phase, said ITD spokeswoman Barbara Babic.

The ITD has revised the project to tackle the most crucial aspects first with the funding already available. The latest version of the plan calls for 15 miles of improvements past Silverwood Theme Park to Granite Hill.

But whether the Legislature will approve bonding down the road to extend improvements to Sagle remains to be seen, Babic said. The ITB requests additional bonding from the Legislature every year.

"At this point in time, it's all about how can we best spend the money that has been allocated to this project, given the criteria of reducing crashes and getting as many lane miles as possible and increasing the level of service," she said.

The uncertainty is disappointing for business and home owners along that north stretch of highway who have anticipated highway expansion for the past four years, said Sen. Shawn Keough, R-Sandpoint.

"If businesses wanted to sell, they haven't been able to, because they couldn't tell where the potential road was going to be," Keough said, adding that homeowners trying to refinance or sell their properties are in the same bind. "What we're working on as a Legislature is to have the ITB put in writing how far they're going to go on that project, so these people can get on with their lives."

Current plans for U.S. 95 include a four-lane road from State Highway 53, with the lanes divided in some areas, stretching to the Granite area. New interchanges along the route would be at Chilco Road, State Highway 54, and Bunco Road/Silverwood.

The Environmental Impact Statement on the U.S. 95 project is about a year behind, because of issues with wetlands mitigation and environmental approvals, Babic said.

Construction isn't expected to begin until around 2010.

Rep. Frank Henderson, R-Post Falls, said the state Legislature knew the GARVEE project wouldn't provide enough funding to complete all the projects started under it.

"We'll go as far with these projects as the funding will take us," Henderson said.

The rest of financing for highway projects like Garwood-to-Sagle will likely stem from the governor's proposals to raise gasoline taxes and license registration fees, he predicted.

Before that, he hopes to see the Legislature review its own costs and budget more efficiently.

"The next legislative session is going to be key as far as transportation is concerned," he said. "It will determine everything - efficiency within the transportation department, possible new funding sources. And the emphasis will be on user fees."