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February 2004

Projects Under the Knife

By Guy Span, S.D.

The draft budget offered by the new administration proposes the elimination of the Traffic Congestion Relief Program that had intended to use Proposition 42 and other funds to address traffic congestion issues. For the Bay Area, this will have a huge impact for a number of significant projects.


For ferries, it eliminates funding for Vallejo’s new ferry currently under construction, and eliminates the start of new ferry service to Treasure Island under the auspices of the WTA. However, Vallejo construction funds have mostly been spent and it is reported at this time that the loss of funds will not impact the delivery. Total loss: $7 million.


Rail takes a bigger hit, including: new commute service from Fremont to San Jose, expanded service to Gilroy, improvements to tracks between Oakland and San Jose, improvements to the Caltrain Peninsula Corridor, extension to Salinas, highway grade separations on the Peninsula, a new siding in Livermore, new service from Cloverdale to San Rafael and Larkspur, and finally, track improvements between Marin and Eureka. Total loss: $375 million.


BART is very bloodied, losing its extension to San Jose, the study of a second crossing, a new parking structure in Richmond, expansion at Balboa Park, and core system seismic retrofit ($758 million). Muni loses its funds for an extension into Chinatown, Ocean Avenue, and also the Third Street extension ($147 million). Various agencies lose funds for experimental fuel-cell buses and other bus projects and a whopping 21 highway projects are eliminated ($279 million), including funds to be earmarked for the new Caldecott Bore. Miscellaneous projects such as a renovation of San Jose’s transit center and others totaled $20 million.


All together, the Bay Area technically loses some $1.641 billion in planned transportation capital improvements. This includes $189 million for reimbursement to various regional and local agencies for funds actual expended in the current fiscal year. So not only does the Bay Area lose a $1.6 billion investment, it stands to lose more millions already spent by the various agencies and subject to reimbursement. Projects under way include Vasco Road, the Richmond BART garage, the new Vallejo ferry, the Baby Bullet Train (peninsula), and rail studies for Monterey, Larkspur, and the North Coast.


Sunne McPeak, secretary of business, transportation, and housing, said that the fate of the projects under construction was uncertain, although she noted that it would be a waste of money to shut them down and later reactivate them. However, the budget itself is real clear. It unambiguously earmarks the $189 million for the underway projects back to the General Fund.