Economic
Impacts of Delayed or Eliminated TCRP &
STIP Projects: A Survey
of Regional Transportation Planning Agencies February
12, 2003 Contact
Information: Diane
Nguyen Grindall RTPA
Moderator SJCOG Tel.
(209) 468-3913 Fax.
(209) 468-1084 e-mail: dgrindall@sjcog.org

Overview
STIP and TCRP projects do not simply mean keeping the
traffic flow, but they are indeed one of the critical economic stimuli
continuously bolstering
Statewide Picture:
There is currently $5 billion allocated statewide for various TCRP projects and $10 billion for various STIP projects in the next five years. The funding for these projects is fundamentally vital for the overall economic wellbeing of the state. This will not only benefit the transportation sector, but also the indirect and induced services employments associated with transportation projects, such as employments in equipment manufacturing, steel, concrete, engineering, restaurants, etc. In addition, the billions in infrastructure investment also generate federal, state and local tax.
Aside from the employment and dollar figures, many of the STIP an TCRP projects play critical roles in the state, regional and local economy by improving access to economic and social capital engines, promoting greater regional integration, assuring public safety, and assisting in downtown revitalization efforts. All of these benefits will have multiplier effects advancing not only the local communities’ economy, but also the region’s and the state’s economy in a long run.
Compromises in STIP and TCRP funding could be extremely
deleterious for
Regional Picture:
Many of the STIP and TCRP projects do not only serve the immediate locales, but they also benefit the entire region and even the country. The enormous long-term large scale benefits of STIP and TCRP projects can be partially demonstrated through the projects like:
The following are specific regional concerns on the economic
impacts of potential cutbacks on STIP and TCRP projects:
While your request is to document the adverse economic
impacts of project delays,
Without getting into too much rhetoric, project delays will
prevent the delivery of safety and operational projects that significantly
affect the movement of resources and goods to and through
In BCAG’s opinion the following criteria should be
considered in prioritizing projects:
The Glenn County Transportation Commission has allocated and
spent all its STIP funds from the prior STIP cycles in a timely manner. Two bridge projects did not proceed because
of lengthy environmental review processes.
The road systems in the County and the two incorporated cities have seen
a dramatic upturn with the completed STIP projects, but there are still many
miles of road that need rehabilitation.
The County Road 27 projects are to improve a vital east-west connection
between Interstate 5 and eastern
STIP projects:
Ø
New Route
7 Expressway-Construct 4 lane expressway
SR-7 is a NAFTA route and with the
recent federal decision to expand the access to Mexican trucks, delaying the
project will delay delivering times for trucks that need to continue to take a
round-a-bout way to reach points north. Safety issues arise as we will continue to
see truck traffic mix with local farm traffic.
Air Quality/Environmental concerns – lands now in state ownership are
going to be fallow to farming in many areas until the expressway is
completed. A delay in construction will
harm the region economically until the land is once again harvested.
Ø
Brawley
Bypass- Construct 4 lane expressway and interchange
The purpose of the Brawley Bypass
is to reduce traffic impacts in the downtown area of Brawley and to accommodate
increased regional and international traffic due to the North America Free
Trade Agreement (NAFTA). This project is
the last in a series of projects that provide a complete expressway from the
U.S./Mexico Border to I-10 in
This project would directly create approximately $14,000,000 in wage income. These wages would
have an additional multiplier effect of 1.997 on service and support jobs
resulting in indirect wages of approximately $28,000,000. Economic benefits from profit and
materials are often seen outside of the construction area but most of the wage
income benefits are likely to be utilized in the immediate area. This constitutes a substantial benefit to
If this project is delayed or deleted it would undoubtedly have a major impact on the economy of the region and the State.
Ø
Pavement
rehabilitation for SR 111 Relinquishment
The purpose of this project is to
rehabilitate SR-111 prior to relinquishment to the
Ø
Reconstruct
I-8 /
Elimination of this project will
impede access to the existing and future development south of
Ø
4 lane
expressway, Keystone to Route 78
This project is the third in a series
of projects that provide a complete expressway from the U.S./Mexico Border to
I-10 in
Along with the Brawley Bypass, this
project is part of the NAFTA Network (NET) and has been designated as
International Border Trade Corridors (IBTC) and Intermodal Corridors of
Economic Significance (ICES). The IBTC
is a transportation network in Imperial,
The project would directly create approximately $4,000,000 in wage income. These wages would have an additional multiplier effect of 1.997 on service and support jobs resulting in indirect wages of approximately $8,000,000. Economic benefits from profit and materials are often seen outside of the construction area but most of the wage income benefits are likely to be utilized in the immediate area.
If this project is delayed or deleted it would undoubtedly have a major impact on the economy of the region and the State.
Ø
Route 98
Widening (West of Route 111)
Elimination of this project will
impede international and interregional movement of people, goods and services
between
Ø
Widen
State Route 98 (Near Calexico - Route 111 to
Elimination of this project will impede the accommodation of NAFTA, interregional and local traffic by not allowing for improved access between the new Calexico East Federal Port of Entry to SR 11 and beyond.
Ø
Brawley
Bypass- Ross to
The construction of this project was completed in December 2002 and therefore it cannot be delayed or deleted.
This project is the first in a
series of projects that provide a complete expressway from the U.S./Mexico
Border to I-10 in
Along with the Brawley Bypass, this
project is part of the NAFTA Network (NET) and has been designated as
International Border Trade Corridors (IBTC) and Intermodal Corridors of
Economic Significance (ICES). The IBTC
is a transportation network in Imperial,
Ø
4 lane
expressway,
This project is the second in a
series of projects that provide a complete expressway from the U.S./Mexico
Border to I-10 in
Along with the Brawley Bypass, this
project is part of the NAFTA Network (NET) and has been designated as
International Border Trade Corridors (IBTC) and Intermodal Corridors of
Economic Significance (ICES). The IBTC
is a transportation network in Imperial,
Ø
Mitigation
work for 4 lane expressway, Keystone to Route 78
Project can not be deleted as it is required mitigation work for SR-111.
TCRP projects:
Ø
TCRP #
148.1 Widen State Route 98 (Near
Calexico - Route 111 to
Ø
TCRP #
148.2 Route 98 widening between Route
111 and Route 7.
Project has been completed. No lost economic opportunities.
Los Angeles County Metropolitan Transportation Agency
Economic
Impacts of Delayed or Eliminated Projects
The MTA has studied the economic impacts of suspending $8.4
billion in highway and transit capital investments contemplated by the
financially constrained Long Range Transportation Plan for
The
State of
Using the Regional Economic Models, Inc. (REMI) forecasting
methodology, the MTA estimates negative impacts in
|
Economic
Indicators |
Cumulative Amount 2003-2009 |
Annual Amount in
2009 |
|
Loss of Full Time Equivalent Jobs |
38,987 |
8,567 |
|
Loss in Business Output |
$ 4.0 Billion |
$ 975 Million |
|
Loss in Personal Income |
$ 2.3 Billion |
$ 537 Million |
|
Loss in State Government Revenues |
$ 271 Million |
$ 61 Million |
*Assumes
structural deficit in State General Fund prevents all TCRP project funding
through FY 2009.


The
following table summarizes impacts to
|
Project Name &
Description |
Description of Impact |
Estimated Dollar Value of
Loss ($ in thousands) |
Potential Jobs Lost |
|
SR99/145
Upgrade: s/o |
Delay
relief of congestion. It is critically important to the community that this
project be completed to provide direct access to the |
$8,550 |
110 |
|
Various
local rehab projects in the City of |
Construction
is complete. The loss to the City of |
$1,281 CTC Allocation & prog
supplement executed |
0 |
|
Planning,
Programming & Monitoring |
Would
seriously impact the ability to perform planning functions including those
functions necessary to comply with regulatory requirements. |
$150 |
1-2 |
|
|
Contract
is awarded. Loss of jobs would result
if construction is delayed/eliminated.
It is undesirable to delay the safety improvements that this project
will provide. |
$746 CTC Allocation & prog
supplement executed |
30 |
|
CMAQ
match reserve |
Funds
are match to three alternative fuel vehicle projects and the Fresno River
Trail project. Each project is
intended to reduce emissions in |
$67 |
0 |
|
Various
rehab projects |
Implementation
has already been delayed as a result of the recent re-spreading of STIP
funds. Work is urgently needed to
prevent further deterioration of roads. |
$2,000 |
22 |
|
|
Project
was already delayed as a result of the recent STIP respreading. Project is greatly needed to reduce
congestion and improve safety at and near the |
$750 |
18 |
|
Almond
Ave. new connector and RR crossing, from |
Delay
of project would impact circulation of traffic in a growth area. |
$500 |
8 |
|
Madera
Amtrak Station relocation (STIP-IIP) |
Delay
of project would prevent timely implementation of safety improvements and
adversely affect ridership. |
$800 |
1 |
|
Fairmead
Interchange & 6-lane freeway (STIP-IIP) |
Funding
delay would delay important safety improvements: elimination of the last
existing “at grade” SR 99 access points within |
unavailable |
unavailable |
|
|
Would
experience loss of construction and engineering jobs. |
$500 |
3 |
|
Rehab:
|
Would
experience loss of construction and engineering jobs. |
$100 |
2-3 |
STIP
Projects
All of the Highway 99 Projects in
Upgrading Highway 99 from expressway to freeway
status within
Highway 152 Bypass
The Highway 152 Bypass has been
Campus Parkway
Campus Parkway provides access to
YARTS Staging Areas
The YARTS project supports an alternative means of
transportation the 4 million visitors a year to
Highway 140 Bradley Overhead
This project replaces an antiquated two-lane bridge
over the Santa Fe Rail Road Tracks. The
STIP funding supplements SHOPP funding by increasing the capacity of the
bridge. The coordination of these two
funding sources saves approximately $25 million in STIP funding by constructing
one project instead of two.
Existing Highway 59 Project
This project remedies
The programmed RIP funding initiates a 10-year
environmental process to realign the existing Highway 59 to connect 99 and
140. Delaying the environmental review
will increase the cost of construction.
Freeway Planting Project
Is a very small project to
beatify Highway 99 in
Metropolitan
Transportation Commission
(Alameda, Contra Costa, Marin,
Napa, San Francisco, San Mateo, Santa Clara, Solano, Sonoma Counties)
The MTC region has $0.56 billion in outstanding STIP fund allocations representing significant infrastructure enhancement projects such as Route 87 Freeway Corridor, Route 29/37 Interchange, and I-680 HOV Lanes. In addition, there is roughly $1.07 billion in committed STIP funding that has not yet been allocated. In total, this $1.64 billion in STIP funding would create roughly 27,250 construction jobs and 54,500 in related service jobs. The associated wage earnings – or potential loss should these projects be delayed – is $4.09 billion. The related state, local and federal tax income is $1.43 billion.
The MTC region has $0.51 billion in outstanding funding
allocations for TCRP projects, including funding for Muni Third Street Light
Rail Extension and Caltrain Express.
These projects sponsors have, in most cases, entered contracts for
project work and any delays in fund availability will have immediate effects on
construction jobs. The $0.51 billion in
allocated funding creates 8,500 construction jobs and 17,000 in related service
jobs. Somewhat less immediate but just
as important for the economy in the long-term, the Bay Area has $0.94 billion
in unallocated TCRP funding. Among the
projects funded with these monies are BART to
Table A summarizes Bay Area STIP and TCRP job and economic
losses and outlines MTC underlying assumptions. While the above factors have
been taken into consideration to evaluate the Bay Area economic loss as a
result of proposed transportation funding cuts, there are still more impacts,
such as the sales and other tax revenue loss as well as the travel time loss,
which could be significant but are difficult to quantify.

Orange
A 1999 Cost Benefit Analysis performed by the Los Angeles Economic Development Corporation estimates approximate $630 million of benefits from the total Orange County Gateway project to eliminate 11 at-grade railroad crossing. This is the sum of costs of traffic delays, accidents and fatalities, air quality benefits, quality of life and adjoining land use benefits, and job income and tax revenues.
The TCRP funded projects grade separate 3 of the 11 crossings. Assuming straight line benefits, the economic loss would be $172 million.
The LAEDC study estimated 1,278 direct jobs and an additional 2,044 indirect jobs resulting during construction of the Orange County Gateway project for a total of $142 million in earnings. Assuming straight line relationships, the potential number of direct and indirect for the TCRP funded projects would be 349 and 557 respectively for a total of $39 million in earnings.
Note: STIP includes both STIP ($1.1 million) and ITIP ($2.2 million). State cash is required because of CEQA environmental clearance.