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LAO: "Design-Build and
Public-Private Partnerships Not Needed to Advance Projects"
In case you missed
it, the LAO yesterday concluded in its Transportation Budget
Analysis that "design-build and
public-private partnerships are not needed to advance projects."
The LAO also found that design-build and public-private
partnerships "are not a necessary element to implementation
of the Governor's economic stimulus proposal." In short,
they DO NOT create jobs or do anything to alleviate our economic
crisis.
Here are relevant
excerpts from the report:
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Design-Build
"Discussion with the Department (of Transportation),
however, indicate that design-build authority would
not be used for any of the highway projects being
proposed for acceleration ... it is not a necessary
element to implementation of the Governor's economic
stimulus proposal." pp. 20-21 |
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Public-Private Partnerships
"Similarly, Caltrans indicates that it does not plan
to use the proposed public-private partnership
authority to speed up any projects designated for
acceleration. Consequently, it is not likely that
the Governor's proposal to authorize public-private
partnerships for transportation projects would
result in economic stimulus..." p. 21 |
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LAO Alternatives Actually Create Jobs
To
create jobs as soon as possible, the LAO again
offered an alternative approach: "we
recommend the use of revenue bonds backed by
future state gas tax revenues to accelerate 122
highway rehabilitation projects. These projects
would be ready for construction in 2008-09,
2009-10, and 2010-11 but are not scheduled for
construction until later years due to limited
funding." The LAO reports also finds
"if
the state were to receive federal economic
stimulus funds for transportation projects, we
think funding highway rehabilitation projects
such as those we identified in our report would
have the greatest economic benefit to the
state." p. 22 |
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