Lower Gas Prices Take Bite Out Of California Road Budget, Canceling Projects
SACRAMENTO (CBS13) — Lower gas prices are putting a strain on California road projects and leading to the state cutting $750 million from the budget, including $25 million of work in Sacramento.
With gas prices below $2 a gallon, transportation officials are having to make some concrete cuts.
Current construction projects in jeopardy include:
- $17 million to replace the Fifth Street Bridge between Marysville and Yuba City,
- $12 million for a new Highway 120 interchange in Manteca,
- $5 million to build a new Highway 50 interchange in Placerville, and
- $18 million to replace regional transit buses.
The money comes from a complex state funding formula based on the price of gas sold at the pump.
Last summer and the 18 cents per gallon spent on roads was slashed to 12 cents, and this summer it's expected to cut another two cents—and every penny raises about $140 million a year.
