I-49 funding uncertain in new Obama infrastructure plan (Updated)

An announced economic stimulus plan by President Obama to push billions of dollars into the nation’s transportation infrastructure has stimulated mixed reactions among state and Fort Smith area officials — although several hope a plan will provide more money for Interstate 49.

The I-49 route stretches from Texarkana, up through Dequeen, Mena and Waldron, into Fort Smith and on through Northwest Arkansas. All that stands in the way of this interstate reality is several small segments at the Arkansas-Louisiana and Arkansas Missouri borders and a 185-mile segment between Texarkana and Fort Smith that posts a price tag of more than $3 billion.

Of the $352 million Arkansas received as part of the $787 billion federal stimulus package, $71.6 million was dedicated to portions of I-49. Also, the $787 billion stimulus contained $28 billion, or just 3.55%, for infrastructure projects nationwide.

OBAMA’S PLAN
In a series of speeches that began last week, Obama began lobbying for a six-year transportation infrastructure plan — focusing on roads, rail and airports — geared to help create jobs and provide other economic stimulus. The plan would kick-start the work with $50 billion.

“To jumpstart job creation, this long-run policy front-loads – through a $50 billion up-front investment – a significant share of the new infrastructure resources. As with other long-run policies, the Administration is committed to working with Congress to fully pay for the plan,” notes a White House statement.

Specifically, the plan seeks to rebuild 150,000 miles of roads, construct and maintain 4,000 miles of rail and rehabilitate or reconstruct 150 miles of runway.

CONNECTING I-49
Fort Smith City Administrator Dennis Kelly said he sent a letter to Federal Highway Administration officials Tuesday (Sept. 7) reminding them of the regional needs. The primary need has a minimum $330 million price tag and would cover the construction of I-49 from the Alma-Interstate 40 interchange, across the Arkansas River and connect with I-49 sections now under construction through Chaffee Crossing. Kelly said recent trips to Washington and working with Washington D.C.-based Watts Partners — the city’s lobbying group — have served to reinforce the $330 million section.

“With that letter, I wanted to get the word to them (FHA) right away to let them know we are aware of it (funding potential from proposed Obama plan),” Kelly said.

An “infrastructure bank” is one proposal in Obama’s plan that may benefit I-49 and other regional rail and port projects, said Mat Pitsch, Regional Intermodal Transportation Authority manager for the Western Arkansas Planning and Development District.

“This bank would leverage private and state and local capital to invest in projects that are most critical to our economic progress,” according to the White House statement. “This marks an important departure from the federal government’s traditional way of spending on infrastructure through earmarks and formula-based grants that are allocated more by geography and politics than demonstrated value.”

However, Pitsch stopped short of endorsing Obama’s proposal. Pitsch said there are too many procedural and political unknowns with the plan.

WAIT-AND-SEE
The Arkansas Highway and Transportation Department is also reserving judgment, with spokesman Glenn Bolick saying they are “taking a wait-and-see approach” to the plan.

“We would welcome any additional funding and will look forward to seeing what projects we have in Arkansas that might fit the criteria. We don’t know any program specifics at this time, but with over $23 billion in anticipated needs projected over the next 10 years and only about $4 billion in expected funds to meet that demand we would certainly expect to have projects that meet any criteria,” Bolick said in an e-mail statement.

Even Gov. Mike Beebe, a Democrat, has a few caveats before endorsing the plan.

“If the President and Congress can craft a plan that is fiscally sound, does not increase the federal deficit and is fair to all of the states, the Governor will work to ensure that Arkansas competes for its share of funding to address our most pressing infrastructure needs,” noted a statement from Beebe’s office.

The statement also reminded that Beebe requested a higher percentage of the original federal stimulus be directed toward “critical infrastructure,” and that “Arkansas has worked to direct its discretionary stimulus funding toward one-time capital projects.”

POLITICAL CONSIDERATIONS
U.S. Rep. John Boozman, R-Rogers and the GOP candidate in Arkansas’ U.S. Senate race, is concerned about how the plan will be funded and its impact on rural states.

“Now with only four weeks left in the legislative calendar and unemployment rates near 10 percent, President Obama proposes what my colleagues and I called for 18 months ago, transportation and infrastructure spending,” Boozman said in a statement. “However, the President’s plan lacks details as to where the $50 billion to fund his idea comes from or how it would specifically benefit Arkansas. I’m concerned that under this proposal funding will be diverted from rural areas to urban cities, ignoring the transportation and infrastructure needs of Arkansas."

Updated info: The office of U.S. Sen. Blanche Lincoln, D-Ark., provided the following response. Lincoln faces Boozman in the Senate race.

"We have two opportunities on the table already to immediately invest in infrastructure and create jobs: the highway reauthorization bill and the transportation appropriations bill. I recognize the importance of I-49 to Arkansas and fought to include $2.5 million for I-49 in this year’s Senate transportation appropriations bill. I will continue to fight for this priority. Unfortunately, Congressman Boozman would rather keep Arkansans’ tax dollars in Washington and did not request the funds in the House bill. Regarding the President’s plan, I’m not yet convinced we need an additional infusion of funds but am open to any proposal that benefits Arkansas and will review additional details once they are available."

At least one Democrat facing a tough re-election is not supporting Obama’s plan. U.S. Sen. Michael Bennet, D-Colo., has said he opposes any new stimulus spending. Other Democrats, including U.S. Rep. Chris Van Hollen, D-Maryland, have said they don’t see the plan moving through Congress until after the November election.