Uh-oh: State shuts down infrastructure projects

Today the state's Pooled Money Investment Board shut down funding for infrastructure projects. Here's a statement from board member (and Torrance resident) John Chiang:

"The State is out of money, and the special funds we rely on to tide us over are fast running dry."

"There is a lot of talk about what hurts the economy more: cutting programs or raising taxes. But we know shutting down these infrastructure projects will definitely have an adverse impact. Anytime you create turmoil and uncertainty you are going to hurt the economy and slow its recovery.

"Today's vote is extremely painful. I worry about the impact shutting down these needed projects will have on the thousands of people working to improve our roads, our schools... the thousands of people who are working to build the California that our residents envisioned and funded."

That doesn't sound good. This list of projects that could be affected includes everything from school construction to road repair to HOV lanes to prisons to streambed restoration. A few are in the South Bay.

Also today, Sen. Barbara Boxer held a press conference in Culver City to announce that "help is on the way" for California's cities and counties, in the form of a stimulus package that should be on President-elect Obama's desk shortly after he's sworn in. Boxer talked about funding some of the same types of projects the state is today withdrawing support for. Perhaps in light of the state's decision, she talked about making those federal funds available without matching funds from state and local government -- a suspension of traditional practice.