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From staff and AP wire reports

County leaders and Montana contractors are telling a legislative committee that the governor's decision to freeze $7 million in stimulus and historical preservation spending is coming at a bad time.

The Montana Contractors Association says an industry that leads the state in unemployment can't afford to lose out on money intended for spurring the economy.

Projects in many local communities are affected by the freeze.

In Belgrade, $132,000 is held up for street intersection reconstruction and sidewalk extensions. In Manhattan, $36,000 for similar projects is on hold. In Ennis, $24,000 in town hall renovation funds is held up. Dillon is waiting on $77,000 for street projects. West Yellowstone won't see the check for $31,000 for wastewater improvements. Virginia City has to wait on nearly $12,000 for remodeling city hall. Whitehall waits for $26,000 for a new ambulance building. In Walkerville, $23,000 is hold for street improvements. In Anaconda, nearly $141,000 is not available for street light renovation. And in Philipsburg, almost $26,000 for water and sewer lines is on hold.

County leaders also told a legislative committee Friday that it disliked the decision by Gov. Brian Schweitzer's administration to withhold $3.5 million in stimulus money and a similar amount in historical preservation grants.

Budget Director David Ewer says the decision to freeze the money indefinitely was necessary to make sure the state has enough money to make ends meet.