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Transportation, funding take center stage at LHTAC meeting

by CAROLINE LOBSINGER
Staff Writer | March 6, 2021 1:00 AM

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Transportation — and how to fund it — are key issues making their way through the Idaho Legislature.

More than 40 representatives from cities, agencies and local highway districts from around the region were updated on those issues at Thursday's Local Highway Technical Assistance Council meeting, held via Zoom.

Under a proposal passed by the Joint Finance & Appropriations Committee, supplemental appropriations — about $122 million — for the current fiscal year will be split between Idaho Transportation Department's strategic initiatives program and the local highway distribution account, Idaho Sen. Jim Woodward, R-Sandpoint, said.

In the past, funds were distributed through a competition grant process through LHTAC. However, Woodward said funds are being routed into the highway distribution account, which allocates funds based on population and miles of road.

Transportation dollars for the upcoming fiscal year look "pretty straightforward," Woodward said, adding that everything was in place for another successful year for ITD.

The budgets are part of an overall conversation about transportation funding, with ideas being tossed around on how to make sure the state is at least keeping up with or maintaining its transportation system, Woodward said.

"We should really be looking forward to expanding the system," he said. "We know we have more and more people here. We either cut into our quality of life or we figure out how to move people around, more people around, with our system."

A proposal to combine sales, fuel and income tax options ended up being scrapped due to Idaho regulations requiring legislation be limited to a single subject. Current ideas center around title or registration fees as well as some kind of bond option, similar to the Grant Anticipation Revenue Vehicle, commonly referred to as GARVEE.

One current option would increase the percentage of funds collected from Idaho's sales tax earmarked for transportation, Woodward said.

Impact of the state's growth on its transportation system is something that has been concerning Idaho Transportation Department officials for some time, Mollie McCarty, ITD governmental affairs director, said.

"We see just incredible growth in the state, northern Idaho is certainly no exception to this," McCarty said. "And it comes with congestion and it comes with safety problems that go along with it."

Legislators are seeing the same thing — and they are hearing about it from their constituents, she said.

"I think that folks are just more and more, recognizing that their life benefits and also consequently suffers based on what we're doing to adequately take care of our transportation systems," McCarty said. "So it does feel like this issue has really been rearing its head more and more as we see congestion in the state."

Recent studies estimate the state's funding shortfall between available funds existing infrastructure needs is in the $240 to $260 million range.

"We simply can't afford to turn our heads on these significant safety and congestion issues that cause so many problems," McCarty said.

Among the options being discussed by legislators, McCarty said ITD officials are definitely interested in a bonding option. In a small state with a constrained transportation budget, McCarty said it can be nearly impossible to address large or safety capacity projects without causing the entire construction program to go by the wayside.

"Without some kind of a tool like [GARVEE], it's just very difficult for us to get to some of the bigger projects without causing catastrophic problems, you know, elsewhere in the state," McCarty said.

However, if the state moves forward with a bonding option, she said a key issue is how will that debt be funded. Without a funding source, large amounts of ITD's budget would be needed to fund the debt service.

Another possible option, included as part of House Bill 133, would be a mechanism to allow local entities to bond, allowing them to get needed projects done, Laila Kral, LHTAC deputy administrator, said.

While it's likely the proposed bill will evolve during the remainder of the session, Karl said it was "something to keep in mind and keep an eye out for."

Gov. Brad Little called for $126 million in his State of the State address at the start of the session, including $2 million for rail and $4 million for airports as well as Safe Routes for Schools with $80 million for ongoing funding.

The governor also indicated his willingness to work with the Legislature to develop a sustainable transportation funding plan, Jake Garringer, Little's North Idaho field director, told those gathered for the Zoom meeting.

"I can say the governor recognizes the need for transportation funding in Idaho to meet our population growth and ensure that commerce continues uninterrupted in Idaho," Garringer said.