Montana Chamber supports state infrastructure plan
The Montana Chamber of Commerce threw its support behind House Bill 5 during a Jan. 12 hearing in front of the Joint Appropriations Subcommittee on Long-Range Planning.
Sponsored by Rep. Jeff Welborn, R-Dillon, HB 5 proposes to invest $400 million on various infrastructure projects in nearly every community across the state.
The Montana Chamber has made infrastructure investment a key priority of its Montana Prosperity Plan agenda for the 2015 Legislature.
“No state can expand its economy without an adequate foundation of infrastructure upon which to do it,” Glenn Oppel, the Chamber’s government relations director, testified. “With recent budget surpluses, policy makers should maximize investment in critical infrastructure in order to enhance this foundation upon which our state and local economies can grow and prosper.”
The Chamber noted that the infrastructure investment proposal reflects the need for significant investment.
The American Society of Civil Engineers gave Montana a C-minus grade in its 2014 Report Card for America’s Infrastructure, concluding that, “Montana’s aging infrastructure is approaching a critical state of disrepair.”
According to the ASCE report’s executive summary, Montana needs to spend $822 million for drinking water infrastructure and $587 million for wastewater infrastructure over the next 20 years.
In addition, the state has 16 hazardous waste sites on the National Priorities List, about 7.3 percent of the state’s bridges are structurally deficient, and nearly 10 percent of the state’s bridges are functionally obsolete. Roads in need of repair cost Montana motorists about $221 million per year. The ASCE report also estimated that Montana schools have $903 million in infrastructure funding needs.
“Not only does adequate infrastructure facilitate today’s economic growth,” Oppel stressed. “It leaves the same legacy to future generations that past generations left to us. As you can see from the ASCE report, we have some catching up to do.”
The Montana Chamber also cited the importance of including funding in the statewide plan to help oil and gas areas in Eastern Montana to catch up with their infrastructure needs.
“The Bakken is one of the reasons Montanans have enjoyed budget surpluses over the last couple biennia, and some of that tax revenue should go back to the communities that are shouldering the burden of the oil and gas boom,” the Chamber said in a press release.
HB 5 recommends appropriating up to $45 million to the Treasure State Endowment Program for local and tribal governments to apply for grants so that they can invest in infrastructure needs arising from the impacts of oil and gas development.
The Montana Chamber also noted that HB 5 would create jobs and improve the state economy. Citing the state Department of Commerce, the Chamber said projects funded by HB 5 would support nearly 4,300 jobs, create $561 million in economic output and increase wages by $200 million.