Posted on 07/11/2003 7:40:23 AM PDT by NormsRevenge
SACRAMENTO Gov. Gray Davis, lashing out at Republicans, yesterday said a budget deadlock will prevent Caltrans from paying contractors after July 20, jeopardizing nearly 200,000 jobs as well as highway projects and public safety.
At the same time, Davis suggested that Republicans may be winning the budget battle and predicted that one legislative house, presumably the Senate, will pass a budget with no tax increases.
"Republicans view a tax increase as some form of leprosy," said Davis, "and they don't want to touch it."
The state has been without a budget since the fiscal year began July 1.
Davis said each day without a budget costs the state about $20 million through lost opportunities for savings.
"It's not fair to withhold their payments," Davis said of contractors for the state Department of Transportation. "It's not fair to put their jobs in jeopardy. It's not fair to jeopardize public safety."
A Caltrans spokesman said among the congestion-relief projects that could be affected in San Diego County are the widening of the Interstate 5/805 merge in Sorrento Valley, and a connector between state Route 56 and Interstate 5.
Caltrans Director Jeff Morales sent contractors a letter yesterday warning that a cash shortage may prevent payments after July 20 and force the state to suspend or terminate some contracts.
Morales said he thinks many large contractors have enough cash or borrowing ability to keep working without state payments. But he said some of the smaller contractors may be hard hit.
"This is a very bad situation," said Robert Balgenorth, president of the Building and Construction Trades Council of California. "If they don't get a budget, the impact on the construction industry is going to be devastating."
The governor said part of the reason Caltrans has a cash shortage is that his administration has doubled spending on transportation, creating many of the jobs jeopardized by the budget deadlock.
Other financial problems facing Caltrans include less federal money and a change in the way truck weight fees are calculated that has produced about $300 million less revenue than expected over two years.
Also, the state has dipped into transportation funds to help close a budget gap. In the fiscal year ending in June, the state borrowed $1.1 billion from the Transportation Congestion Relief Fund.
Senate Republicans contended in a briefing paper, "The governor has borrowed and otherwise siphoned almost $3.7 billion from transportation in the last two fiscal years, and proposes to divert another $1.03 billion."
In his remarks about the budget deadlock, Davis apparently referred to speculation that the Senate may try to pass a Republican-written budget before a monthlong summer recess scheduled to begin next Friday.
Senate Minority Leader Jim Brulte, R-Rancho Cucamonga, is proposing a plan for the new tax that Davis says is demanded by Wall Street to finance a $10.7 billion bond to help close a $38 billion budget gap.
Under Brulte's "tax swap" plan, a half-percent in sales tax that currently produces $2.4 billion for local government would be cut and replaced with a half-percent sales tax that would go to the state. There would be no tax increase for consumers.
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2004 is gonna be a very intense series of battles . There should be a sloughful of demRats evicted as they have abdicated their oaths and responsibilites to serve the public, not enslave it.
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On a winding 6 mile stretch of state highway 49, there are miles of guard rails. On one switch-back, trucks have destroyed the railing on the inside of the curve at least 3 times in the last few months, causing CalTrans to replace it.
Just up the road a few feet, they were busy blocking traffic to replace 500 feet of perfectly good railing supported by wooden posts on the inside of a barely perceptable curve, with a higher railing supported by steel posts!!!
The old railing had NEVER been hit, ever!!!
I have no doubt they are using the special fund for these railings, just to meet CalTrans payroll since there is no budget!!!
To make me even angrier,(ROAD RAGE!) I get stuck in this traffic tie-up behind a white pick-up with big magnetic signs telling the Stalinist loving people of this state to "Call 1-800-Tell CHP" if you spot a wreckless driver!!! (no everyone... I don't approve of wreckless driving, but they've got these "snitch" lines for everything now, just like Stalin's Communist Party apuratchicks)
Are you gonna come visit this social lepper in ol stoney lonesome? (if so, bring laptop w/satellite hook-up to FR)
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