Road and Bridge budget warns of SRS shortfall; commissioners asked to consider PILT backfill and reduced capital risk

Flathead County staff presented the Road & Bridge budget to commissioners April 30, projecting $8.6 million in revenue for fiscal 2026 and warning that a loss of Secure Rural Schools (SRS) funding will reduce the department’s flexibility for large capital projects. Dave Prunty, presenting the department review, said the department is planning for a revenue decline from roughly $9 million last year to about $8.6 million and has submitted a sidebar request to commissioners to consider a PILT (payment‑in‑lieu‑of‑taxes) backfill.

Why it matters: the SRS shortfall could force the county to delay crushing and other capital work, reduce services, or use reserves; each option would affect road maintenance and winter response across the county.

Revenue and transfers: Prunty listed $5.353 million in property tax revenue, roughly $350,000 in SRS funding this year (the department received a partial payment), $495,000 in dust‑control assessment receipts, and existing transfers of $500,000 from PILT plus about $627,000 from the general fund. He told commissioners he has written a sidebar request proposing to use PILT or other available funds to mitigate the SRS reduction.

Capital and operations: Prunty outlined several large one‑time projects and budget lines. A planned closure and reclamation at the Sheep Herder pit is budgeted with roughly $450,000 in contracted services to finish subgrade, import topsoil and hydroseed; he said that project will fall out of future budgets. The department has approximately $500,000 budgeted for a crush (1‑inch minus) to support gravel supplies and set a $990,000 allocation for the dust‑control cost‑share program. Prunty noted the department budgeted a $1.2 million gas‑tax revenue estimate with $800,000 of that set aside for asphalt oils and about $400,000 for striping and crack sealing contractors.

Service and staffing: department payroll and staffing allocations were discussed in the context of operating cost centers: asphalt maintenance, chip seal (two weeks of intensive expenditure and work), gravel road maintenance, winter maintenance and shop operations. Prunty warned that if SRS is not reauthorized or backfilled, the department could face reduced capital spending, delayed maintenance or service reductions; he said the department currently has healthy reserves (he referenced about 33% cash reserve) but that continuing deficits could reduce that to the low‑20s on his projections.

CIP, equipment and buildings: the presentation included a list of capital projects and equipment purchases; Prunty said $853,000 is targeted for CIP savings this cycle, and the county will fund a new shop/truck barn over time (engineer estimate about $3 million, funded from multi‑year savings). He noted increased costs for plows and sanders and a plan to build a salt‑sand building at Fox Pitt (design work forthcoming), and said Road will acquire Solid Waste’s loader for continued county use.

Dust‑control and R A C funding: Prunty said dust‑control cost‑share fees increased to $1.65 per linear foot this year (county portion ~50%), and that Resource Advisory Committee (RAC) or similar grant funding timing is uncertain; a pending RAC application for the North Fork (Camas to Pole Bridge) would change both revenue and expense timing if funded.

Bridge, gas tax and stormwater: Prunty briefly reviewed bridge fund projections (revenues ~ $926,927 and supporting programs) and said the department will shift more guardrail, post and related work in‑house after acquiring a post‑pounding tool to reduce contractor costs. He also presented gas‑tax estimates of $1.2 million for the department, and a small Big Fork stormwater assessment fund ($~40,000 in revenue and about $25,000 in contracted services) that will pay for routine maintenance under the RMD assessment structure.

Next steps and risk: Prunty said he will return to commissioners when year‑end close gives a clearer picture of reserves and that the department will press for federal reauthorization of SRS in Washington but cannot rely on that outcome. Commissioners did not take a formal vote during the session; Prunty asked for direction on whether to proceed with PILT backfill and reserve use to avoid cutting services.