Mobility 21 Warns Budget Impasse Will Cost Thousands Of Jobs And Highway Construction Delays

Sept. 23, 2010

IRVINE, Calif. – Mobility 21, Southern California’s transportation coalition, is calling on leaders in Sacramento to immediately pass a state budget to keep major construction projects moving, prevent potential job loss and end unnecessary taxpayer waste.

According to Caltrans, at least $2.1 billion in ready-to-go transportation improvements will be stalled and at least $9 billion in ongoing construction projects in California will come to a grinding halt in the next month if Caltrans can’t pay contractors. The lack of a budget will significantly delay major infrastructure improvements, jeopardizing approximately 188,000 jobs across California.

“Southern California’s struggling economy is further endangered by the state’s failure to pass a budget, since it can no longer pay private contractors working on transportation projects and those firms will have to either extend their own finances past the breaking point or shut work down and lay off employees,” said Mobility 21 Chairman Steve Finnegan, also from the Automobile Club of Southern California. “A work stoppage on highway projects around the state would also drive up the ultimate cost of those projects and delay needed improvements and repairs to the roads that California businesses and workers need to grow the state’s economy and bring back jobs.”

Thursday, Sept. 23 marks the 85th day the Golden State has gone without a budget, shattering previous records. Transportation officials, business leaders and labor representatives are united in their call for swift action in Sacramento because the ripple effect statewide is devastating to real people, real businesses and real projects.

For a list of Caltrans projects in Southern California impacted by the state budget impasse, please see

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