Arnold Schwarzenegger
California State Governor

At one of the most congested sections of I-405 in Los Angeles, Governor Arnold Schwarzenegger today highlighted the job, economic and quality of life ramifications of the legislature’s failure to pass a real and comprehensive budget solution. The legislature’s inaction caused the state Pooled Money Investment Board (PMIB) to vote last week to stop $3.8 billion in state infrastructure financing over the next six months – including the halting of $730 million in financing to build a 10-mile I-405 HOV lane in Los Angeles between LAX and US 101 in the San Fernando Valley designed to reduce 23,000 hours of freeway congestion per day. Due to the legislature’s continued failure to provide a real and comprehensive budget solution, 2,000 infrastructure projects in California valued at more than $16 billion are in jeopardy and tens of thousands of California jobs are immediately at risk.

“Last week the legislature asked Californians to pay higher taxes and fees without making a real attempt to put Californians back to work and help them keep their homes. Because of the legislature’s continued failure to pass a real budget solution, funding for infrastructure projects like this I-405 widening project has been stopped. So instead of bulldozers, cranes and construction workers getting to work – all we’ll have is more gridlock. This not only halts job creation and economic stimulus across California, but it also impacts our quality of life,” said Governor Schwarzenegger. “The time for political posturing is over – its time the state legislature starts solving problems instead of creating them.”

Designed to widen I-405 in Los Angeles County between Interstate 10 near Los Angeles International Airport (LAX) and US 101 in San Fernando Valley – this 10 mile northbound HOV project would complete the HOV system on Interstate 405 from State Route 14 to the Orange County line. As southern Californians know, this section of I-405 is heavily congested and existing traffic in the project area can be stop and go throughout the day. The HOV project projects to reduce 23,000 hours of congestion per day. Due to the legislature’s inability to resolve California’s budget shortfall, the financing for this project has been halted – and funding for 2,000 other projects across California is in jeopardy. (For a list of all infrastructure projects that could potentially be affected, please see the attached list).

Last week Governor Schwarzenegger declared he would veto the budget bills passed by the legislature because they fail to provide real solutions for California’s budget crisis and also fail to provide economic stimulus and mortgage relief for California. On November 6, 2008, the Governor presented a budget proposal to the legislature that would address all such issues.

In September, Governor Schwarzenegger announced the $730 million Proposition 1B allocation to this Los Angeles 1-405 HOV project. It is the largest individual Proposition 1B project allocation to date.