Measure Diverting Transit Money for Roads Is Signed

A measure giving Orange County permission to use $9 million annually for road projects was signed into law Wednesday by Gov. George Deukmejian.

It is the first time any county in the state has been allowed to use money earmarked for transit development for another purpose.

The Orange County Transportation Commission will administer the new fund under the law, which takes effect in January.

Local officials had predicted that the bill would be controversial. But with local transit officials backing it, the Orange County bill moved through the Legislature with hardly a ripple of dissent.

However, public transit officials have expressed fears that Orange County’s plan may spread statewide, particularly in light of recent comments by Orange County Supervisor Bruce Nestande, who also is chairman of the state Transportation Commission.

Los Angeles Speech

Nestande, a frequent critic of mass transit programs in Orange County, said in a Los Angeles speech that the portion of sales-tax revenues that is set aside for transit projects in large counties should be diverted to general transportation purposes.

The most recent newsletter of the California Assn. of Publicly Owned Transit Systems said the comments were cause for great concern.

In counties with populations greater than 500,000, a quarter cent from each 6 cents of revenues raised from the state’s 6-cents-per-$1 sales tax is placed in the transit account.

In Orange County, the $85 million that has been accumulated is largely idle. The bill by Sen. John Seymour (R-Anaheim) will allow the interest earned from that money to be spent on roads and freeways.

The Orange County Transit District, which operates the bus system, scaled back its ambitious plans for 38-mile light rail system after voters’ defeat last year of a 1-cent-per-$1 sales-tax hike to pay for assorted transportation projects.

Giveaway Fears

Some local transportation officials say it was the fears that the Legislature would give Orange County’s transit money to neighboring Los Angeles and San Diego counties, where major transit projects are planned or under way, that brought about local agreement on the diversion plan.

Under the bill, half the money will have to be spent on upgrading local streets and half on freeways. The county will need legislative approval to keep the bill in effect after 1989.

Since defeat last year of the sales-tax measure, which would have raised $5 billion over 15 years, local transportation officials have been putting forth “a lot of little ideas” to raise money for needed transportation improvements, said Stan Oftelie, OCTC executive director.

“This is a part of that strategy,” Oftelie said.