BV bypass unaffected by cuts in federal funds

Without congressional help, construction on highway projects across Arkansas will end May 31, when federal funding expires, Danny Straessle, Arkansas Highway and Transportation Department spokesman, said last week.

However, work on the Bella Vista Bypass will be unaffected.

"The current (section of the bypass) under construction that is being paid with federal funds is about to be completed," Straessle said in an email. "It's the stretch from Arkansas 72 north to Benton County Road 34. Straessle expects that section of the road to be completed this summer.

The rest of the bypass under construction is being funded through the voter-approved half-cent sales tax."

The department originally heard May 11 that federal transportation funds for projects in Arkansas will discontinue after May 31, Straessle said in a news release.

Arkansas was one of six states this spring forced to delay construction of transportation projects because of uncertainty over federal funding, according to a report from USA Today. Earlier this month, AHTD pulled bids on nine transportation projects totaling about $120 million, according to a report from the Northwest Arkansas Democrat-Gazette.

If the funding isn't extended past May 31, more than 131 federally funded projects across the state will halt construction. Those projects are worth an estimated $1.5 billion, according to the Democrat-Gazette.

"We knew this would happen if Congress did not take appropriate action in time," Scott Bennett, AHTD director, said in a news release. "Although we have been preparing for reductions or delays in federal-aid reimbursements, we now have to consider the impacts of a complete (Federal Highway Administration) shut-down."

The Highway Trust Fund was established in 1956, and primarily uses taxes on fuel -- known colloquially as the "gas tax" -- to fund state, local and national transportation projects, according to the Federal Highway Department.

The HTF's primary funding comes from an 18.4 cent tax on gas and a 24.4 cent tax on diesel fuel, according to the CBO. But those taxes haven't been raised since 1993, and the CBO estimates the tax should have increased to 30 cents and 40 cents, respectively, to keep pace with the consumer price index.

Due to environmentally friendly vehicles, rising construction costs and a lack of action from Congress, the CBO estimates a budget shortfall for the HTF of $168 billion over the next 10 years.

Ron Wood and Noel Oman contributed to this report.