As you were informed by a MITA bulletin earlier today, the US Congress has let the surface transportation authorization (known as SAFETEA-LU) expire, temporarily suspending Highway Trust Fund payments to all state transportation departments.
Based on conversations with MDOT leadership today, the following is the most current information MITA has on the potential impacts of the Highway Trust Fund shutdown:
FHWA: As the Federal Highway Administration (FHWA) employees are paid from the Highway Trust Fund, the FHWA Michigan Division office was closed at noon today. The FHWA offices will remain closed until Congress approves a SAFETEA-LU extension bill or they pass a new surface transportation bill.
MDOT March 5th Letting: MDOT currently anticipates this letting will proceed as planned assuming quick resolution of this funding situation at the federal level.
However, because resolution is not guaranteed, they may be forced to postpone this letting later this week. Although the federal funds for these projects have been obligated (FHWA commitment of Highway Trust Fund monies), MDOT could not proceed with the award of any of these projects without FHWA concurrence.
MDOT April 2nd Letting: Status is uncertain for the same reasons associated with the March 5th letting. Projects that were planned for this letting with a 4-week advertisement may not be advertised because federal obligation could not occur prior to the advertisement.
Payments on Existing Contracts: MDOT will continue to make payments to contractors on existing contracts in the near term. As MDOT executes their federal-aid program on a reimbursement basis (MDOT makes payments to contractors with state funds and then submits for reimbursement for those payments from the Highway Trust Fund) they will continue to make payments until their available state funds run out. Should the Highway Trust Fund shutdown drag on such that MDOT would spend all the state funds they have available to make payments, MDOT may be forced to stop work on existing contracts.
Continue to monitor your company e-mail as MITA will keep you informed about this very serious federal funding situation as the information becomes available.
If you have any questions please feel free to contact Mike Nystrom at mikenystrom@mi-ita.com , Keith Ledbetter at keithledbetter@mi-ita.com , or Glenn Bukoski at glennbukoski@mi-ita.com or call the MITA office at 517-347-8336.
