Blog: Dermot Cole
Surprise in stimulus bill chops Fairbanks road allocation
Published Tuesday, February 24, 2009
The new federal stimulus law has turned into Murphy’s Law for Fairbanks road projects.
One of its obscure provisions wipes out the allocation of about $5 million in highway money that had been expected in our community.
That means there is no money for replacing thousands of street lights with LED bulbs, a $3 million project identified last week as the top local priority.
Work on Nordale Road, Phillips Field Road and the Barnette Street Bridge had also been in the mix until recently.
But a Feb. 19 letter from David Miller of the Federal Highway Administration in Juneau to Leo von Scheben, commissioner of the state Department of Transportation, revealed the bad news.
He said the law divides the road money into three categories: 3 percent for transportation enhancements; 67 percent for projects anywhere in the state; 30 percent for urbanized areas over 200,000 and urbanized areas under 200,000.
Anchorage has more than 200,000 people and stands to get several projects funded.
But the allocation for areas under 200,000 includes a subcategory for communities with a population of less than 5,000.
The new law requires that communities with less than 5,000 people have to get at least 10 percent more than the state received in highway funds in 1991.
This was a move by Congress, established in earlier highway funding legislation, to direct money from bigger cities to smaller towns.
Alaska and Hawaii were exempted in the old highway law, but there was no exemption in the stimulus bill.
“In the case of Alaska, this calculation results in the entire suballocation for areas under 200,000 going to areas of under 5,000,” Miller said. “This result occurs only in Alaska.”
In other words, Fairbanks is out of luck.
Anchorage is in line for $19 million, while communities with less than 5,000 people are going to split $34 million, according to the federal estimate.
The federal highway people say that Fairbanks could qualify for some of the $118 million which is available to any area of the state, 67 percent of the total appropriation.
“We understand that this has not been the interpretation that the Alaska Department of Transportation and Public Facilities has been working under,” Miller wrote.
The Palin administration did not revise its list of priority projects to add Fairbanks projects that could be funded from that $118 million portion of the total.
The road project list released by Gov. Sarah Palin Tuesday includes no Fairbanks projects.
Kotzebue would get $6.5 million to reconstruct Shore Avenue, while Yakutat would get $3.8 million for paving, Nome would get $4 million for city streets, Hoonah would get $3 million for paving, Valdez would get $3 million for a bike path rebuilding and Emmonak would get $3 million for community roads, under the governor’s plan.
The street light replacement project for Fairbanks is on the "contingency" list, behind $6.8 million for a Ketchikan ferry, $4.5 million for Richardson Highway resurfacing, Mile 276-286, and $4 million for paving roads in Delta.
The contingency requests are projects that would be funded if, for some reason, other states don’t spend the federal highway money in a timely manner and some of it ends up in Alaska.
That’s a big “if.” It will be up to the Legislature to adjust the state plan and put Fairbanks back on the priority list.

Great article. Some of the roads around this area, like Nordale as it rises above the flats, are dangerous and cause accidents.
That out basic infrastructure is in such deplorable condition during relatively good times shows just how poorly run this state is.
Imagine how bad the roads are going to get as oil production (state revenue) continues to decline.
It sounds like the black spot we got from the state legislature over the HCCP project is continuing.
Anyone see a pattern? First they don't want to invest in UAF so they can back UAA, next they don't want to invest in energy projects here because the Healy Clean Coal Plant was stalled, now they don't want even to invest in the Interior area for road projects. This sucks.
Who the heck did we cross to get the ire of or state government?
Chena Hot Springs, Farmers Loop, the down town mess...I can think of a whole bunch of roads around the Fairbanks North Star Borough that could use some repair work. Come on Governor and DOT, get on the ball and open your eyes before you send the economic stimulus money back to Washington DC.
We've got the money.
I mean, if our elected officials need a raise so bad in this time of trouble, then surely there are funds to work on the roads.
Surely, if the gov. can suggest building a road to Nome, then we've got enough laying around to fix what we've got.
Surely- my favoite, too-, during the summer, when there are miles and miles of closed road overseen by a couple of teenagers and pilot cars- while there's no apparent work in progress- then there's money to fix what's there.
It all comes down to budgeting. If existing roads needs fixed, and if downtown needs a makeover, and (well, you know the list is long...) we've only got some much to spread around, then tell your elected representative what needs to be done.
Leaving it up to them to decide? First they'll give themselves a raise, and I'm sure I'll be stopped by some kid for an hour everyday- both ways- to eventually be allowed to drive by and watch a couple of contractors standing in the road drinking coffee.
Those Bridge to Nowhere scars run pretty deep!
Maybe Fairbank's Mayor Stryle and City Council should have read the stimulus bill. Surprise, city of Fairbanks, your share of the stimulus package is $0. Like Congress is going to pass special measures for a end of the road town with hasn't even counted it's presidential votes and the election result winner for President is announced.
For Nordale and the like, that doesn't count quite the same as the city roads. I don't know if it's a state road or a road service area road (I suspect the former), but it's outside of the city. It wouldn't be affected by the stimulus language because it is outside of the boundary in question.
Arctic_Lynx, to answer your question, I was in Juneau in 2007. Essentially, the Legislature thinks that Fairbanks has gotten more than its fair share over the last decade or so, so they're sticking it to us. It didn't help that two of our local three senators were in the minority. Things might get a little better with Paskvan in the majority.
Street lights are existing construction. It's really a no brainer to switch them out for LED. Most of the money, will go to the purchase of hardware vs. going into the pocket of the workers.
Like I said, I got some ditches requiring digging and a couple of culverts needing installed?
What's with everyone blaming State government for this??? It the FEDERAL regulations that left us out of the loop.
Sarah and other State officials just learned about this situation. It wasn't their fault!
If you want to blame somebody, blame Obama!
Bull. You may lay this at the feet of our own state legislature. And the people that keep electing local bozos that promise something for nothing. Free money for everybody but you have to put up with 3rd world road and communication networks, that's the deal.
Look at the bright side. Your rural brethren will benefit with some of the stimulus money.
You people voted them in- - - -local and National------you got what you wanted- - - -now shut up
sharpstick - kind of on the harsh side but you are correct in your statement.
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