Infrastructure Spending In Montana: Is It Enough?
43% of Montana rural roads are in less than good condition as are 72% of urban roads
By Denise Rivette
According to Infrastructure Weak, a November 22 article in the The Economist by Simon Rabinovitch, if you just look at the number of dollars spent on infrastructure construction, spending in the U.S. seems to have gone up by about 25% since the Infrastructure Investment and Jobs Act (IIJA) was signed into law November 2021. Disappointingly, once inflation has been accounted for, spending is actually down by more than 10% during that time. IIJA is dedicating $1.2 trillion to improving and expanding roads, bridges, power grids and communications technology.
Delays have meant that inflation has eaten away some of the anticipated impact of the investment.
Rabinovitch writes, “The problem is that inflation has been rampant in the construction sector, making delays that much more pernicious. The single biggest component of the infrastructure package was a 50% increase in funding for highways to $350bn [$3.26 billion is slated for Montana] over five years. But highway construction costs soared by more than 50% from the end of 2020 to the start of 2023, in effect wiping out the extra funding. ‘A lot of the cost estimates that states and local agencies have are from three to five years ago, and they are just totally off now,’ says Santiago Ferrer of BCG, a consultancy. This, he adds, leads to two outcomes: either authorities get no bidders because contractors think their prices are too low; or they revise their cost estimates, which takes yet more time.”
Contributing to delays are aspects of the bipartisan infrastructure law itself including requirements to “Buy America”, promote racial equity, environmental sustainability and fair wages.
Rabinovitch continues, “Laudable as these goals are, they have slowed things down. ‘The administration is at war against itself. It wants to advance these projects aggressively. But some of its requirements just preclude their delivery,’ says D.J. Gribbin, a consultant and former general counsel in the Transportation Department. The law also included more than 100 new competitive grant programmes, which require new application systems and new compliance procedures. ‘These are a nightmare to set up and run,’ Mr Gribbin says. Some state and local officials are not even bothering to apply for funding.”
To manage grant applications and funding, “the federal government asked states to establish infrastructure co-ordinators, leading to more joined-up planning for water, roads, energy and more.” Governor Gianforte’s office was asked for the name of Montana’s infrastructure coordinator. No response has been received. Lists found online that are used by contractors to contact state infrastructure coordinators did not list one for Montana.
The article also points out a “substitution effect” where the arrival of Federal money in one expense category allows states to redirect their own funds elsewhere. “A recent wave of tax cuts by states has been made possible in part by the gusher of federal cash.”
Montana’s Roads and Bridges
According to a recent report, in Montana, 43% of locally and state-maintained rural roads are in less than good condition as well as 72% of urban roads.
Governor Gianforte’s office was asked for the most recent cost estimate to bring Montana roads up to good condition and the annual cost to maintain them in good condition. They referred me to the Department of Transportation where I was referred to the webpage for submitting public requests. According to the webpage, I can expect a response (not necessarily an answer) before February (90 days from the time they acknowledged receipt of the request).
Despite additional state and federal transportation investments, some segments of Montana’s transportation system are falling apart, lack some roadway safety features or “do not have the level of reliability needed to fully support economic development, particularly on routes that are relied upon by the state’s growing energy extraction industry or its tourism industry.” This is according to a report released January 2023 from TRIP, a national transportation research nonprofit based in Washington, DC. The report looks at the condition and use of Montana’s system of roads, highways and bridges and provides information on the state’s top 20 transportation challenges and the improvements needed to address them (see end of article for table of projects).
From the January 20, 2023 American Association of State Highway and Transportation Officials (AASHTO) Journal: Montana’s 2017 Bridge and Road Safety and Accountability Act (BaRSAA) combined with additional federal funding has allowed Montana to improve the condition of its roads, highways, and bridges. BaRSAA is expected to generate some $40 million in additional road and bridge funding annually, providing critical infrastructure funding for local governments and enabling the Montana Department of Transportation to match and leverage more than $100 million in federal funds. Highway investment in Montana is likely to increase even further as a result of the five-year Infrastructure Investment and Jobs Act (IIJA) , which will provide an additional $3.26 billion (that’s billion with a “B”) for highway, bridge, and transit investments in Montana over the next five years, which includes a 33% funding increase in fiscal year 2022.
However, while current transportation investment levels have allowed Montana to make infrastructure improvements, the state still faces challenges in accommodating growing passenger and freight traffic as well as making roadway safety improvements along with road, highway, and bridge repairs.
The TRIP report, “Keep Moving Montana Forward: Progress and Challenges in Achieving a 21st Century Transportation System,” finds that nearly one-third of Montana’s major locally and state-maintained roads are deteriorated, with 13% in poor condition and 17% in mediocre condition. Driving on deteriorated roads costs the average Montana driver an additional $526 each year in extra vehicle operating costs – a total of $427 million statewide. These costs include accelerated vehicle depreciation, additional repair costs, and increased fuel consumption and tire wear.
More alarmingly, “Traffic crashes in Montana imposed a total of $1.2 billion in economic costs in 2020. TRIP estimates that roadway features, while not the primary factor, were likely a contributing factor in approximately one-third of all fatal traffic crashes, resulting in $400 million in economic costs in Montana in 2020. These costs include work and household productivity losses, property damage, medical costs, rehabilitation costs, legal and court costs, congestion costs, and emergency services.”
From 2019 to 2021, Montana’s traffic fatality rate increased significantly to become the fifth highest in the nation. The fatality rate on Montana’s non-Interstate rural roads in 2020 was more than two and a half times higher than all other roads in the state (2.58 per 100 million vehicle miles of travel vs. 0.96). And, while 49% of vehicle travel in the state takes place on rural non-Interstate roads, 72% of fatalities in Montana occur on those same rural non-Interstate roads.
Statewide, 7% of Montana’s bridges are rated poor/structurally deficient, with significant deterioration to the bridge deck, supports or other major components. Most bridges are designed to last 50 years before major overhaul or replacement, although many newer bridges are being designed to last 75 years or longer. In Montana, 41% of the state’s bridges are 50 years old or more.
“Montana has put the increased state and federal transportation dollars to good use and made needed improvements to its transportation network,” emphasized Dave Kearby, TRIP’s executive director. “But, in order to continue to enhance the system, the state will need to make further increases in its level of transportation investment,” he said. “A safe and reliable transportation network that is maintained in good condition and offers improved mobility and accessibility to meet the needs of Montana residents, businesses, and tourists alike, is critical to moving Montana forward.”
Top 20 Montana Road and Bridge Challenges
