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Opinions - January 2004

Will Cuts Pull the Plug on Road/Transit Projects?

By Tom Holsman

The state Department of Finance's current proposal that takes another $800 million in transportation funds to help close the state's budget deficit will "pull the plug" on a transportation program that is already on life support.

Siphoning off this money will also jeopardize billions of federal transportation dollars California needs to get key projects off the ground.

California already ranks worst in the nation on the condition of its roads and the amount of traffic congestion. For the past several years, we have also spent less per capita than any other state on improving our transportation system. This proposal, if adopted by the Legislature, will eliminate any chance we have of dealing with the state's intolerable traffic congestion and it will also impede our economic recovery.

At a time when Congress is deciding how much federal money each state will receive in federal funds, California is essentially saying, 'we want all the transportation money you can give us, but we're not going to spend it on transportation. We're going to use it on debt the state acquired because we overspent. That's not a message that will go over well in Congress. If California can't demonstrate its willingness to commit its share, other states will be in a better position to compete for that federal money.

Currently, the House Transportation and Infrastructure Committee is considering a $375 billion, six-year, highway and transit funding bill for congestion relief and safety projects. The bill was unveiled in November.

There are discussions that would allow the Finance Department to take another $1.2 from the state sales taxes on gasoline (from Prop. 42).

An overwhelming 70 percent of the voters two years ago approved a constitutional amendment requiring the taxes we pay at the pump be used on projects to fix our roads and reduce traffic congestion. This proposal flies directly in the face of that mandate and further erodes what little confidence the voters have that the politicians are listening to them.

Additionally, the state has proposed scrapping a $13 billion program aimed at easing the state's worst bottlenecks over five years - a program funded by the voter-approved measure.

These cuts, coming after three straight years of heavy borrowing from state transportation accounts, would be disastrous for traffic congestion, road conditions, and the economy. And to lose this federal money would be inexcusable. Some of these projects will never move forward without an allocation from Congress.

A partial list of projects at risk of being delayed or eliminated include:

Bay Area:
$4.4 billion BART extension to San Jose
$1.2 billion carpool lane project over the Sunol Grade on I-680
$353 million widening of U.S. 101 at the Novato Narrows in Sonoma County.
$200 million HOV lane project on Interstate 580 in Livermore
$122 million widening of U.S. 101 south of San Jose
$182 million Caldecott Tunnel fourth bore
$1.17 billion extension of the subway system to Chinatown in San Francisco.
$188 million regional express bus program.

Sacramento Region and Central Valley
$15.4 million interchange at Watt Avenue on U.S. 50, Sacramento
12.6 million interchange modification at Sunrise Boulevard on U.S. 50, Sacramento
More than $200 million in improvements to light rail systems in Sacramento
$55.9 million widening project on U.S. 99 in Fresno.
$56.8 million expressway construction project on Rte. 180 near Clovis
$224.9 million widening of Rte. 46 between Interstate 5 and the San Luis Obispo County line.

Southern California:
$1.7 billion widening of the Santa Ana freeway with HOV and mixed-use lanes.
$817.8 million light rail projects in east Los Angeles.
$580.3 million rapid bus/light rail project for mid-city Los Angeles.
$427.3 million HOV lane project on Rte. 22 through Orange County.
$195.6 million HOV lane project on Rte. 5 through San Fern ando Valley.
$118 million freeway construction project on Rte. 71 through Pomona.
$135. 5 million HOV lane project on Rte. 91 through downtown Riverside.

Holsman is CEO of AGC of California.

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