RESOLUTION 2004 - 34

MONTANA DEPARTMENT OF TRANSPORTATION INDIRECT COST ALLOCATION

Montana Association of Counties supports legislation exempting the Montana Department of Transportation from paying indirect cost allocations to the State of Montana.

WHEREAS, the 2002 Montana Legislature passed legislation amending Section 17-3-111 MCA allocating indirect costs to federal and private grant recipients; and

WHEREAS, the fiscal note for House Bill 21, amending Section 17-3-111 MCA, stated this legislation had no impact on local governments; and

WHEREAS, the legislation does, in fact, substantially impact local governments and completion of their federally assisted projects; and

WHEREAS, the legislation reduces project funds; and

WHEREAS, the indirect cost allocation (currently 12.38%) is cost prohibitive and will cause the delay or termination of many federally funded projects;

NOW,THEREFORE, BE IT RESOLVED that the Montana Association of Counties will support legislation exempting the Montana Department of Transportation from paying indirect costs to the State of Montana.

SPONSOR: Lewis and Clark County

RECOMMENDATION: Do Pass

PRIORITY: High

REFERRED TO: MACo Transportation Committee

ADOPTED: Annual Conference, Missoula, MT, September 29, 2004