California – Caltrans announced Wednesday that delays in approval of a state budget for the next fiscal year will have huge impacts on funding for new and existing transportation projects throughout the state. As of now, it looks at though Amador County road projects will remain unaffected, but the delays could stop at least $262 million dollars for projects in our district (District 10) that are either awaiting allocated funds, under construction, or contingent upon the 2010 Budget Act. This includes $112 for roadway rehabilitation on Interstate 5 and Highway 99 in Sacramento County, $108 million for rehabilitation of Interstate’s 5 and 80 in Sacramento County, $20 million for partially completed bridge replacement on Highway 99 in Merced, $17 million for partially completed reconstruction of Highway 99 in Ceres, and $5 million for a roadway rehabilitation project on Route 4 within District 10. Although there is no financial impact in Amador County, Charles Field, Executive Director of the Amador County Transportation Commission, said there will be an indirect effect on local projects in the works. “Funding cutbacks would impact Caltrans ability to have all the resources and staff people it needs to help deliver projects on schedule,” said Field. “Caltrans is on 4 hour furlough weeks, and the new District 10 director who we would appeal to is going to work for Contra Costa County now,” he added. Field said all of this create a “ripple effect,” and small, rural county projects receive less attention. “Should the Budget Impasse continue through the end of August 2010, transportation fund cash balances may be depleted, resulting in potential suspension of ongoing construction projects,” said Cindy McKim, Director of Caltrans. Her concerns were outlined in a letter to Dale Bonner, Secretary of California’s Business, Transportation and Housing Agency. McKim wrote that during the 2008/09 fiscal year budget impasse, “payments for over 96,000 invoices were delayed resulting in more than $215,000 in penalties.” She said, “State tax revenue is impacted by delaying income to construction contractors and their employees” and project suspensions result in penalty payments to contractors and increased project costs. Caltrans currently has funding for transportation projects worth over $2.1 billion that are contingent on the approval of the state budget, and another $900 million in new contracts to construction firms and $9.5 billion of current construction that may be delayed. “Without a budget and the uncertainty of available cash for contracts after September, the department will not be awarding new contracts,” said McKim. “This impasse will cause a delay in new construction starts and delay the creation or saving of jobs.” Story by Alex Lane This email address is being protected from spambots. You need JavaScript enabled to view it.
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California – Caltrans announced Wednesday that delays in approval of a state budget for the next fiscal year will have huge impacts on funding for new and existing transportation projects throughout the state. As of now, it looks at though Amador County road projects will remain unaffected, but the delays could stop at least $262 million dollars for projects in our district (District 10) that are either awaiting allocated funds, under construction, or contingent upon the 2010 Budget Act. This includes $112 for roadway rehabilitation on Interstate 5 and Highway 99 in Sacramento County, $108 million for rehabilitation of Interstate’s 5 and 80 in Sacramento County, $20 million for partially completed bridge replacement on Highway 99 in Merced, $17 million for partially completed reconstruction of Highway 99 in Ceres, and $5 million for a roadway rehabilitation project on Route 4 within District 10. Although there is no financial impact in Amador County, Charles Field, Executive Director of the Amador County Transportation Commission, said there will be an indirect effect on local projects in the works. “Funding cutbacks would impact Caltrans ability to have all the resources and staff people it needs to help deliver projects on schedule,” said Field. “Caltrans is on 4 hour furlough weeks, and the new District 10 director who we would appeal to is going to work for Contra Costa County now,” he added. Field said all of this create a “ripple effect,” and small, rural county projects receive less attention. “Should the Budget Impasse continue through the end of August 2010, transportation fund cash balances may be depleted, resulting in potential suspension of ongoing construction projects,” said Cindy McKim, Director of Caltrans. Her concerns were outlined in a letter to Dale Bonner, Secretary of California’s Business, Transportation and Housing Agency. McKim wrote that during the 2008/09 fiscal year budget impasse, “payments for over 96,000 invoices were delayed resulting in more than $215,000 in penalties.” She said, “State tax revenue is impacted by delaying income to construction contractors and their employees” and project suspensions result in penalty payments to contractors and increased project costs. Caltrans currently has funding for transportation projects worth over $2.1 billion that are contingent on the approval of the state budget, and another $900 million in new contracts to construction firms and $9.5 billion of current construction that may be delayed. “Without a budget and the uncertainty of available cash for contracts after September, the department will not be awarding new contracts,” said McKim. “This impasse will cause a delay in new construction starts and delay the creation or saving of jobs.” Story by Alex Lane This email address is being protected from spambots. You need JavaScript enabled to view it.
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