California Department of Transportation

Headquarters - Public Affairs Office
Mark J. DeSio
(916) 654-5782

June 28 , 2005 

CALTRANS TO CONTRACTORS: “CALIFORNIA IS BACK IN BUSINESS”

Construction funding soars to $4.1 billion from $900 million last year

Sacramento – Construction funding for State transportation projects has more than quadrupled this year, prompting the California Department of Transportation (Caltrans) to invite back private contractors who have sought construction work in other states due to the fiscal woes of California.

“California is back in business,” said Caltrans Director Will Kempton. “We want contractors to come back to the state – there’s work to be done.”

Last year, California had just $900 million worth of construction work for contractors to bid on. In comparison, $4.1 billion will be allocated during the 2005-06 fiscal year.

The surge in funding comes largely from Governor Arnold Schwarzenegger’s proposal to transfer $1.313 billion in Proposition 42 monies to the State Transportation Investment Fund. It also includes the expected Indian gaming revenues and regular revenues Caltrans receives from State and Federal gas taxes and truck weight fees.

“We want to get the message out to contractors that while the last few years have been a challenge, California is turning the corner when it comes to building and maintaining our transportation infrastructure,” said Diane Eidam, Executive Director of the California Transportation Commission (CTC). “The Governor’s reinstatement of Proposition 42 funds has paved the way for new contracting opportunities.”

On July 14, the CTC will vote to release the first $1 billion in construction funds – “more money, in just the first month of this new fiscal year, than all of what was allocated last year,” Kempton noted.

The Governor’s reinstatement of $1.313 billion in Proposition 42 funds was announced as part of his May Revision of the 2005-06 state budget. Next steps through mid-July call for the CTC to plan how to spend Proposition 42 funds. Additional savings from Caltrans efficiencies also will be redirected toward transportation projects – providing $251.6 million for the CTC to apply to the 2006 Fund Estimate.