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Ensuring funding in a shutdown

Published (2/17/2012)
By Mike Cook
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A remedy could be established in the event legislators cannot agree on a plan to fund state roads maintenance and construction.

The House Transportation Policy and Finance Committee is expected to vote on HF1971 at its Feb. 20 meeting.

The bill would appropriate money from the Trunk Highway Fund to the Department of Transportation to cover contract costs and essential employees needed for contract administration for state road construction; road maintenance and operations; and program planning and delivery, such as preliminary engineering or project management.

The constitutionally dedicated funds come primarily from three highway user taxes: motor fuels, vehicle registration and the sale of motor vehicles.

“Because of the unusual situation last summer, we had work actually suspended, and one of the reasons given was there as no authority to expend funds on contracts that had already been signed, had already been vetted and had already been awarded,” Committee Chairman Rep. Mike Beard (R-Shakopee), the bill sponsor, said at the Feb. 13 meeting.

“The bill basically allows contracts that have already been let to continue operation and authorize the commissioner from (Minnesota) Management & Budget to have access to money to continue the contracts that are already in force.”

Tim Worke, director of the Transportation and Highway/Heavy Division for the Associated General Contractors of Minnesota, spoke in support of the bill.

“Construction is inherently schedule-driven and in this state we have a severely climate-shortened construction season,” Worke said. “When you disrupt that sequencing, there is significant repercussion downstream and throughout the schedule of the project.”

A combination of sequencing and the state government shutdown cost O’Malley Construction about 45 percent of its business in 2011, said Lori O’Malley, the company president. They subsequently had to lay off five employees _ about 23 percent of their workforce.

“The courts don’t understand what is essential in Minnesota,” said Rep. Mark Murdock (R-Ottertail).

A companion, SF1530, sponsored by Sen. Joe Gimse (R-Willmar), was scheduled to be heard Feb. 16 by the Senate Transportation Committee.

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