GILROY
– For the 10th consecutive quarter, sales tax revenue failed to
reach the levels that county transportation officials had
budgeted.
GILROY – For the 10th consecutive quarter, sales tax revenue failed to reach the levels that county transportation officials had budgeted.
The county received a $2.2 million check last week for Measure B transportation improvement projects, but the amount is $800,000 short of what the county needed to stay on budget. The series of shortfalls have been dwindling Measure B reserves, jeopardizing chances that leftover money will be used to finish the Highway 152 widening project near Gilroy Foods.
Measure B is the county’s billion-dollar transit improvement program aimed at improving and expanding highway and rail services in Santa Clara County. Each quarter, a percentage of sales tax is earmarked to spend on Measure B projects.
“We are not pressing the panic button yet,” said Jeff Davis, a Measure B program administrator.
However, Davis acknowledged that if the shortfall happened again in March, Measure B planners may have to make changes to the transportation improvement program. Davis would not speculate on what those changes could be, but he said it could entail speeding up and/or delaying projects.
Davis said there is a positive spin to the situation. Each of the last several quarters, the amount that sales tax revenue was off from projections has diminished.
“We had a high of 20 percent off. Last quarter it was 5 percent off. Now were down to 2.3 percent off (of budget projections),” Davis said. “We believe we’re on the verge of a turnaround next quarter.”
Measure B funds have been used to add lanes to U.S. 101 and improve on-ramp and off-ramp access at the U.S. 101 and Highway 152 interchange. However, a lack of money has caused plans to widen Highway 152 further and install a stoplight at a dangerous curve in front of Gilroy Foods to stop short.
