The impacts of budget problems with the State of Kansas continue to have trickle down effects. The Kansas Department of Transportation’s funding has been gashed for years to make up budget deficits, and in turn local street departments are seeing less improvements and less money sent their way.

Great Bend Engineering Tech Karl Otter says the city will once again take advantage of Federal Fund Exchange, which turns federal dollars into state dollars.

Karl Otter Audio

The exchange program allows KDOT to pocket the difference on the reduced amount given to cities and counties, but the reduced amount comes with far less “red tape” and administrative expenses. The program also allows Great Bend greater flexibility with the types of repair work they can perform on streets.

Otter says KDOT does not have to orchestrate this program, but do so to keep the state’s roads in good shape.

Karl Otter Audio

KDOT has been forced to reduce the Federal Fund Exchange program from $4.5 million this year, resulting in a much smaller number for all area communities. In the past, the exchange of funds was at a rate of 90 cents in state funds for each $1 in federal funds. This year’s exchange rate has been reduced to 75 cents for every federal dollar.

Otter noted the City of Great Bend received roughly $186,000 in federal dollars last year, which was exchanged for over $160,000 in state funds.