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Impact of U.S. DOT Highway Fund Shutdown on ODOT
ODOT Director Jolene M. Molitoris joined state transportation directors across the country in a conference call yesterday with Federal Highway Administrator Victor Mendez, who announced that the U.S. Department of Transportation will temporarily shut down federal reimbursements made to states for transportation construction projects.
This extraordinary situation comes after Congress delayed action on a short-term extension of the Highway Trust Fund. The Fund supports all surface transportation programs for the nation - highways, bridges, transit and federal safety inspections.
ODOT is working closely with the Federal Highway Administration to determine how this temporary shutdown will impact state investments - including Ohio's plans for an historic construction season, in which ODOT and its transportation partners were set to invest $2 billion into capital and construction projects.
According to early guidance from Washington, FHWA will halt any reimbursements for existing projects funded with federal dollars. In Ohio, this should not have an immediate impact on active, previously-authorized projects set to resume this Spring. In addition, it should not have an immediate impact on previously-authorized projects planned by Ohio's metropolitan planning organizations.
However, FHWA will halt the authorization of any new projects, which will prevent the advancement of hundreds of state and local projects which would be ready for new construction this Summer.
While the Winter months are typically a slower time for active construction in Ohio, ODOT still averages about $3 million each day in federal expenses, which for the time being will not be reimbursed. For fiscal year 2010, ODOT expected to receive as much as $1.3 billion in federal transportation funds.
This uncertainty in federal funding could not come at a worse time: Ohio is relying upon its federal partners as ODOT prepares for the largest transportation construction program in state history - larger by 30 percent than ever in Ohio's past.
While this uncertainty is manageable in the short term (with the use of state transportation funds), ODOT urges a resolution in Washington to prevent any long-term impacts to Ohio's efforts to maintain and modernize its world-class transportation system.
Director Molitoris will be sharing her concerns with Ohio's Congressional delegation today, and with FHWA Administrator Mendez again later this week.
Congress must act immediately, contact your congressional representative today!
