In Budget Crises, States Reluctantly Halt Road Projects
By JENNIFER STEINHAUER
Published: December 22, 2008
LOS ANGELES — With cars whizzing behind him along one of Southern California’s most congested and detested freeways, Gov. Arnold Schwarzenegger warned Monday that the state was “on a track toward disaster” as it ceases highway, school and bridge construction because of budget and credit woes.
California, which has suspended nearly $4 billion in public works projects, is one of a half dozen states delaying or halting projects because of capsizing budgets, an inability to attract investors to the municipal bonds used to bankroll many projects and a reduction in gasoline tax revenues — which underlie a lot of transportation financing.
The American Association of State Highway and Transportation Officials has identified 5,000 transportation projects nationwide that lack the dollars to proceed; many of them, like the $730 million project here to add 10 miles of high-occupancy-vehicle lanes to the 405 Freeway — Mr. Schwarzenegger’s backdrop on Monday — have been stopped midstream.
“They just haven’t been able to find the resources,” Tony Dorsey, the spokesman for the association, said of the halted projects.
More than 40 states are struggling with revenue shortfalls, and lawmakers across the country are cutting, taxing and pleading their way toward solvency. Fixing bridges, expanding highways and other infrastructure projects have faced the same fate as government entitlement programs, state jobs and other items.
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http://www.nytimes.com/2008/12/23/us/23works.html?hp