MMA calls for stand-alone Ch. 90 bill at $300M per year

After receiving just two-thirds of the Chapter 90 local road funding allotted by law for fiscal 2014, the MMA and municipal officials are continuing to press the administration to release the full amount while looking forward to fiscal 2015 and beyond.

In an Oct. 21 letter to all legislators, the MMA urged them to pass a five-year, stand-alone Chapter 90 bond bill that would provide $300 million per year for the local road and bridge program.

Following three straight years of lengthy and costly delays in the release of Chapter 90 funds, the MMA is asking legislators to pass a bill this fall in order to give local officials the ability to plan ahead, take advantage of the full construction season, and use the funding efficiently.

“As you know, the passage of a bond bill (and the companion “terms” bill) requires a long journey along a very time-consuming pathway,” the MMA wrote. “In order to avoid another frustrating and costly delay in the start of local road projects for fiscal 2015 and beyond, we respectfully and urgently ask that the Legislature enact a multi-year, $300 million-a-year Chapter 90 bond bill as soon as possible, before the end of the 2013 session on Nov. 20, even if that requires separating it from the governor’s bond bill that remains in committee or any omnibus bond bill that may be on a slower path.”

A bond bill and a separate “terms” bill each must be passed by the House and Senate and signed into law by the governor before any Chapter 90 funding can be released to cities and towns.

The process was even more complicated this year due to the debate over a separate transportation finance bill. The governor delayed release of final Chapter 90 allocation letters until July 30, rather than the customary and statutory date of April 1.

Both the House and Senate unanimously passed a $300 million, stand-alone Chapter 90 bond bill for fiscal 2014 in May, and the governor signed it into law, but ultimately the governor released just $200 million of the funding. Regardless of the Legislature’s actions, decisions about how much Chapter 90 funding to release are the domain of the governor’s office.

The $300 million Chapter 90 authorization remains on the books, however, and could be released by this or any future administration at any time.

A statewide survey conducted by the MMA late last year documents that the state’s cities and towns would need to spend $562 million each year to maintain local roads in a “state of good repair,” the industry standard, but communities spend far less due to inadequate resources. With this in mind, local officials and the MMA have been consistently calling for a $100 million increase (50 percent) in the Chapter 90 program, to $300 million per year.