TRAFFIC REMEDY REVIVED ARNOLD WANTS TO RESTORE $1.3 BILLION TO PROJECTS.

Byline: David M. Drucker and Lisa Mascaro Sacramento Bureau

SACRAMENTO - California's gridlocked motorists could get some relief under a plan Gov. Arnold Schwarzenegger proposed Wednesday to restore $1.3 billion to long-delayed transportation projects.

The proposal, part of Schwarzenegger's revised state budget scheduled for release Friday, could give a green light to at least $150 million in traffic-relief projects in Los Angeles County, including $25 million in the San Fernando Valley. The county might also receive $59 million in reimbursements for projects it began with its own money due to delays in state funding.

``I want a California where people spend much less time in traffic and in traffic congestion, and spend more time at home with their families,'' Schwarzenegger told a gathering of local-government officials in Sacramento. ``We're going to create the infrastructure that reduces the gridlock in our roads ... and creates more jobs.''

In Los Angeles, projects that could now be on the fast track include adding a high-occupancy-vehicle lane to the northbound San Diego Freeway through the Sepulveda Pass and car-pool lanes to the Golden State Freeway between the Hollywood and Antelope Valley freeways.

In Ventura County, construction of the California Street off-ramp from the northbound Ventura Freeway could move forward. Statewide, cities and counties would split $254 million of the $1.3 billion for local street maintenance.

Officials in Los Angeles - the most congested city in the U.S., according to a study released this week - were thrilled by Schwarzenegger's announcement that he was reversing his January plan to raid Proposition 42- protected gas-tax funds.

``This is great news; absolutely the greatest,'' Metropolitan Transportation Authority Chairman Frank Roberts said. MTA officials could not immediately say how much money would flow to Los Angeles County, or which projects the agency would fund when the new money is approved.

The authority had just released what officials called a ``painful'' 2005-06 budget with more layoffs and transit reductions, and they hope now to be able to revisit their spending plan.

The Los Angeles Area Chamber of Commerce said the governor's plan signals to the business community that the state is addressing its transportation problems, a move much needed for the region to improve the quality of life of its residents, and competing for business expansion to remain economically vibrant.

``It's been a central point of frustration for commuters and businesses that rely on goods movement that the state has not been able to provide funding through (Proposition) 42,'' said Brendan Huffman, the chamber's director of public policy. ``It looks like the MTA will have some money to invest in transportation needs. We can start looking forward to some congestion remedies.''

Voters passed Proposition 42 in March 2002, allocating gas-tax funds solely for transportation projects. Since then, however, former Gov. Gray Davis and Schwarzenegger have diverted the money to balance successive years of multibillion-dollar budget deficits.

Facing a shortfall estimated at $8.6 billion, Schwarzenegger proposed in January a $111.7 billion spending plan that included more than $4 billion in borrowing and the transfer of $1.3 billion in Proposition 42 money to other uses.

But economic conditions have improved significantly since January - state tax revenues have surpassed projections by $2.2 billion - and Schwarzenegger says it's time to stop borrowing the constitutionally protected Proposition 42 funds.

``I'm really happy about his transportation proposal because he's really moved to where we were on it,'' said Assembly Budget Committee Chairman John Laird, D-Santa Cruz. ``If we can just get the same commitment on seniors, education, and a structurally balanced budget, (Democrats) would be a pretty happy group.''

Los Angeles County Supervisor Michael D. Antonovich welcomed the turn of events. His aide said Proposition 42 funding has become a focal point for the region's various cash-strapped transportation agencies.

``This is some huge news,'' said Michael Cano, transportation deputy for Antonovich, who serves on the MTA board.

Staff Writer Harrison Sheppard contributed to this report.

David M. Drucker, [phone]

david.drucker(at)dailybulletin.com