Kansas budget woes delay highway projects in Harvey, Reno counties

Delays announced for a slew of Kansas highway projects stand to have immediate consequences for people in Harvey and Reno counties.

In the wake of an announcement by state budget director Shawn Sullivan, the Kansas Department of Transportation said last week it will delay 25 modernization and expansion projects, including one project in Newton and two near Hutchinson. Work was scheduled to begin in both areas later this year, though both jobs are now in limbo.

Following the latest in a series of dismal state revenue reports, Gov. Sam Brownback proposed that the state take $185 million during the 2016 and 2017 fiscal years from its highway fund in an effort to close the gap on a newly-projected $290 million budget shortfall.

The announced delays include $271 million worth of work tied to 14 projects in fiscal year 2017, which begins July 1, and $247 million worth of work tied to nine projects in fiscal year 2018, according to a transportation department news release.

An additional two projects – with an estimated total cost of $35 million – slated for fiscal year 2019 are also being pushed back.

Harvey County

In Harvey County, the transportation department had planned to start work in December on the reconstruction of the I-135 and 36th Street exit, which is on the southern edge of Newton’s city limits.

The interchange sits less than two miles from the Kansas Logistics Park, an area that still is without a tenant despite its creation in 2009.

In 2011, the 36th Street exit project was included in the department’s T-Works program, which is a 10-year multifaceted transportation program that was passed by the 2010 Legislature. The project is expected to cost about $12 million.

Department engineer Kelly Farlo said the enhancements to the interchange would include the widening of exit ramps and creating bigger intersections to accommodate trucks and heavy load traffic.

“My sense is that this project would clearly be needed for some of the types of industries that we’re trying to attract to the Kansas Logistics Park,” said Barth Hague, Newton’s vice mayor.

“At this point, there’s not an immediate problem that I see with the interchange. I could, however, see one down the road if there’s not funding to make that change.”

Tindall, a South Carolina-based precast concrete company, purchased land a few years at the park and owns 230 acres, though it has yet to build anything.

Chris Palumbo, the company’s vice president of business development, said that Tindall purchased the land with the intent of constructing a facility that would fabricate a precast concrete wind tower base that would allow wind turbines to be placed at “higher elevations” in order to produce additional power.

“We expect the wind industry to continue to develop,” Palumbo said. “It’s not unusual for our company to purchase land in anticipation of building or expanding. Some of those plans are short-term and some are long-term.”

If and when a facility in Newton does materialize, Palumbo said it could employ close to 200 people, most of whom would be new hires.

“I don’t think (the highway project delay) changes our plans,” he said. “We make our decisions based on business, not necessarily on infrastructure.

“If and when the business makes sense for us to proceed, it could be sooner or later that we continue (with a Newton facility). We still expect to move forward with a facility in Kansas.”

Also in the general area of the 36th Street exit are other Newton projects, including an under-construction YMCA facility and a planned new Goodwill Industries location.

Goodwill Industries of Kansas vice president for marketing and development Molly Fox said she’s aware of the project, and its delay. But she said Goodwill has not discussed what impact, if any, it will have on the new facility, which is expected to be completed late this year.

Newton city spokeswoman Erin McDaniel downplayed the immediate impact of the delay, but also indicated that it is a troubling sign.

“We are concerned about the continued diversion of funds from KDOT and its effect on our transportation system,” McDaniel said.

Reno County

In Reno and Rice counties, more than $90 million worth of T-Works highway modernization work northwest of Hutchinson will be delayed.

In Reno County, a $47 million plan to redo K-14 for a stretch of 7 miles from 4.5 miles southeast of Nickerson to the Reno/Rice county line will be put off. In Rice County, similar work was to be done to an 8-mile segment of the highway from the county line to just north of Sterling.

Ryan Barrett, a transportation department engineer for the two projects, said land has been acquired in the area with the idea that K-14 will be expanded to four lanes in the future when traffic volumes increase to where there is more demand for additional capacity. Three new interchanges and three new overpasses would also be constructed.

“It’s disappointing,” said Gary Meagher, Reno County’s administrator. “This project has been planned for a lot of years. KDOT has put a lot of work into it. I know it’s not their fault. It’s just another example of some of the tax policy issues from the governor’s office.

“There’s concern about when this project will be done and if it will ever be done.”

Meagher said the improvements proposed for the highway in Reno County would help with traffic efficiency and enhance safety.

“There’s frustration,” Meagher said. “Rather than trying to deal with the real issue – the tax policy – they have chosen to continue to cut some of the projects that really should be done. The people in this area were really hoping to see this project constructed on time.”

Despite the delays, Swartz said the department still expects to complete all 25 of the projects.

“It’s important for people to understand that these are just delays,” Swartz said. “We still expect to start on these projects in the next 18 to 24 months.”

This story was originally published April 25, 2016 at 5:38 PM with the headline "Kansas budget woes delay highway projects in Harvey, Reno counties."