The shutdown of construction on the $324 million Lincoln bypass highway in Placer County has been postponed a month, giving transportation officials reason for hope.
"I call this a stay of execution," said Celia McAdam, executive director for the Placer County Transportation Planning Agency.
State officials said earlier this month they didn't expect to be able to keep funding the Highway 65 bypass project and seven others statewide.
The bypass, one of the largest projects in the region, would convert 12 miles of Highway 65 into a beltway around Lincoln. Construction began in July and is expected to last several years.
Work was to stop last week, but the state Pooled Money Investment Board, made up of the state controller, treasurer and director of the Department of Finance, released $650 million in bonds. The limited funding is to keep ongoing transportation and infrastructure projects alive a bit longer, McAdam said Wednesday.
"That freed up cash to keep us going to the end of February," McAdam said.
"We don't know what happens after that," she said.
If the bypass project is shut down, transportation officials estimate restarting it could cost the state $10 million more.
In the meantime, work at the construction site continues with a smaller "winter crew" of 40 employees from DeSilva Gates Construction. The contractor has 300 workers scheduled for the project this summer.
McAdam said the latest funding gives more time for the state Legislature to agree on a budget, which is critical to selling bonds for the bypass and other transportation projects.
The bypass also might receive funding if the proposed $819 billion federal stimulus package becomes law before the end of February.
Part of the package allocates $43 billion for transportation projects, including $30 billion for highway and bridge construction.
"We are hearing the state could get $3 (billion) to $3.8 billion to be divided up between the state and the local governments," McAdam said.
While there is no guarantee of federal money coming in time to help the bypass project, the project is on a priority list because it has the potential to lose so much money, McAdam said.
"We are not the only ones in a world of hurt, but I am hopeful this is going to come together," McAdam said.
Call The Bee's Ramon Coronado, (916) 773-6866.
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