Budget crunches Y-S projects

The Feather River Setback Levee, the Highway 70 widening project and the Tisdale Bypass rehabilitation effort are among thousands of projects to get the ax when state officials halted funding because of the budget shortfall.

More than 2,000 projects are listed, many of which are already underway.

The decision to halt funding to these projects was made by the state Pooled Money Investment Board Wednesday. Board members said withholding money is necessary because the state's finances are so grim.

"We don't have the money to loan, so we're stopping the projects," said state Treasurer Bill Lockyer.

Paul Brunner, director of the Three Rivers Levee Improvement Authority, said the state has already invested $80 million into the Feather River Setback Levee and he doesn't see why they are withholding funding now.

"It's hard to believe they won't complete the project," Brunner said.

The state had awarded Yuba County $138 million for 6 miles of setback along the Feather River through Proposition 1E money. But the list of affected projects says $20 million for the Feather River Levee Improvement Project and $10 million for the Lower Feather River Setback Levee will be withheld.

A total of 36 projects in the Yuba, Sutter and Colusa counties are affected by the cuts. Projects range from roads and levees to schools and housing, totaling $174 million.

Lockyer estimated previously that the frozen projects could cost California 200,000 jobs and eliminate $12.5 billion in private sector revenue in every part of the state. Officials were still calculating the full effect of Wednesday's decision.

Controller John Chiang, a member of the investment board, noted that the decision came as state officials had hoped to spur the economy through more infrastructure investment, not less.

"This is only going to tear into the heart of California's recovery efforts," he said.

The board agreed to meet again in early January possibly to provide about $500 million to keep the neediest projects going.

Dozens of Caltrans projects are affected by the decision including the $12.2 million for the Highway 70 widening project and $162 million for the Lincoln Bypass.

Caltrans spokesman Mark Dinger said much of the dirt work on the major projects has stopped because of the weather, but construction on structure work, such as the new bridge across the Bear River, were scheduled to continue.

"We're still evaluating options to borrow from other transportation funds to keep projects moving forward," Dinger said. "These projects are not just going to stop."

Completion of the new Caltrans building on B Street in Marysville is also in jeopardy. Roughly $1.4 million to complete the demolition of the old building and the construction of a new parking lot was slated for funding.

Additionally, Sutter County projects include $100,000 for the long-awaited Tisdale Channel Bypass Rehabilitation, $250,000 for the Mid-Valley Levee Reconstruction Project, $1.5 million for the Sutter Bypass Pump Station Plant Control Systems Upgrade and the Highway 99 widening project were included on the list.

A $1 million grant to Colusa County is also on the list of withheld funding. The purpose of the grant was not specified.

The Associated Press contributed to this report.