A transportation bill promising hundreds of millions of extra dollars to help rebuild I-15 and construct roads for the 2002 Olympics hit a dead end Wednesday - and is blocked for now.
That left Utah officials scratching their heads about whether that may force a local tax increase to pay for such projects - or whether hoped-for funding from the federal government will eventually come anyway.The trouble came because a huge transportation package - which included help for Utah beyond its early expectations - would have spent in just three years all the highway construction money allowed over five years by the recent balanced budget deal.
House Transportation Committee Chairman Bud Shuster, R-Pa., pushed that anyway, saying the money comes from gasoline-tax trust funds that could only be spent for transportation - and that extra money shouldn't sit in accounts to give the impression that the budget is balanced.
But House Speaker Newt Gingrich opposed it, saying it was a deal breaker for the balanced budget agreement.
The two compromised so that in the Transportation Committee on Wednesday, Shuster pushed a bill to simply extend by six months current highway authorizations in the old Intermodal Surface Transportation Efficiency Act (ISTEA).
The trouble is, ISTEA authorized little spending for light rail and I-15 - and the state is already bumping into budget ceilings. It needs expanded authorization to receive more federal funding through annual appropriations bills.
But the Gingrich-Shuster compromise reportedly would allow increasing transportation budgets in a follow-up bill if expected budget surpluses materialize at the end of the fiscal year. All that leaves Utah transportation projects in limbo for now.
Marianne Funk, press secretary to Rep. Merrill Cook, R-Utah, a member of Shuster's committee, said the six-month extension of ISTEA still provides funds that can be used at the discretion of the secretary of transportation for projects as necessary.
"So the second we get a chance, we're going to go to the secretary and ask him to allocate some discretionary funds for I-15," she said.
When Sen. Bob Bennett, R-Utah, was asked what the developments likely mean in Senate versions of bills for I-15 and Olympics projects funding, he said, "Frankly, we don't know yet."
He added, "I've tried to get the pulse of the Senate. But this caught the key folks sufficiently by surprise so that there is no consensus what this means. . . . It will take 24 to 48 hours to sort out exactly what we do."
Bennett said, "I hope this is like a `bridge loan' in a financial deal," where financing is in place for a deal, but the documents cannot be finished as scheduled, "so the bank gives you a loan to tide you over until the deal is done."
Bennett said Senate Majority Leader Trent Lott has said he wants to finish a full reauthorization of ISTEA before Congress adjourns. But if the House does not concur, Bennett says he is unsure what will happen.
Meanwhile, Bennett said Utah projects appear to be doing well in Senate versions of that reauthorization. He adds, "I think that the Utah story is sufficiently compelling that we will do all right in the long run."
Shuster's original bill would have provided $583.93 million in formula highway funding to Utah over the next three years - which Cook said was almost double what it received in the last three years.
Also, it created a special freeway repair account that could have brought millions more for the rebuilding of I-15. It also allowed special spending for projects needed for the Olympics.
It also would have allowed $36 million in Utah for projects to reduce congestion and smog - such as constructing "high-occupancy vehicle" lanes for car pools. And it would have authorized $5 million for recreational trails.
Clint Topham, deputy director of the Utah Department of Transportation, said it's too early to know whether Wednesday's development could force the Legislature to borrow more money to pay for the $1.59 billion I-15 reconstruction project.
Topham said he believes Shuster is buying time until the political and economic climate is right for reauthorization of ISTEA. Cook told Topham and other public officials last month not to be surprised or too alarmed if ISTEA reauthorization is delayed.
"There's really a lot of support from legislators in Washington" for surface transportation funding, Topham said.
The good news, Topham said, is that it appears federal funding will be continued at least at the same level for the next six months. And it is still possible, he said, Utah will get the money included in Shuster's bill.
The six-month continuation could be more problematic for the Utah Transit Authority, which needs federal funds for further study of a proposed east-west light rail extension from the University of Utah to the Salt Lake International Airport. While the UTA Board has not made a decision on whether to build that 10.9-mile line, a $10 million engineering study would need to get under way soon if the extension is to be completed before the 2002 Winter Games.
"Generally speaking, it's not uncommon for us to see some delays in this kind of legislation," said Ken Montague, UTA's director of finance and administration. "(But) if we are going to complete the east-west line prior to the Olympics, six months could be a tremendous amount of time because we're really tight for that right now."
Montague said once funding is secure, it would take several months to put the engineering project out for bid. It is possible, he said, that UTA might find other ways to fund such a study while federal money is in limbo, but he did not know Wednesday exactly how that might be accomplished.
UTA also would need federal assistance if it decides to create a commuter rail passenger train system between Payson and Brigham City, which some local government officials would like to see in place as soon as possible. Further study of light rail spurs into West Jordan, Draper and east Sandy also are dependent on federal help.
Under a six-month appropriation, Montague said, UTA would get its normal allotment for operating and capital expenses, which totals about $12 million to $15 million annually.
Cook said the delay in passing the larger transportation bill may actually help Utah in the long run.
"Clearly the money to spend on America's infrastructure is there. We just need to get leadership to agree to spend it. We have a better chance of doing that next spring, when we have more firm numbers on these anticipated surges in projected revenue."