Thursday, July 10, 2014

Ongoing road projects in West Virginia may have to wait on federal funding


More than 200 road projects that are underway now in West Virginia could be in jeopardy if members of the U.S. Senate and U.S. House of Representatives do not find a way to replenish the Highway Trust Fund before the start of August.

Nationally, the shortfall for the current fiscal year is estimated at between $8 billion and $9 billion and that amount includes millions of federal dollars for road construction and maintenance projects in the Mountain State that are already under contract.

Mike Clowser, executive director of the Contractors Association of West Virginia, said - if the federal funding is not there, as scheduled, next month - contractors will have two options.  The first of those options would lead to layoffs.  

"We can just shut the jobs down until this issue is resolved and, when Congress does provide additional funds to the state, then we will resume those projects," he explained.  "The second option that contractors will have is to continue working on the projects, but to accept about 50 cents on the dollar of what they are owed."

Last year, West Virginia received about $400 million in federal highway dollars from the Highway Trust Fund.