State Coalition Urges Override of Road Bill Veto

A coalition of business, labor and local government officials urged Congress Monday to override President Reagan’s veto of an $87.5-billion highway construction bill, contending that the President’s action could cost California 22,000 jobs and delay $500 million in state and local transit projects.

But Republican Gov. George Deukmejian, who supports many of the affected transit projects and was a leader in the fight to scrap the nationwide 55-m.p.h. speed limit, which was part of the bill, has sided against many of his business supporters in opposing an override of Reagan’s veto.

“The governor did support the (highway) bill obviously because it includes provisions for highway projects and the speed limit,” said Donna Lipper, Deukmejian’s deputy press secretary. “But he understands the President’s reasons for the veto. . . . He is opposed to an override.”

In vetoing the bill Friday, Reagan characterized the legislation as a “budget buster” filled with pork-barrel spending for unneeded projects. Among the “demonstration projects” specifically targeted by the Reagan Administration is an $807-million appropriation for the Los Angeles Metro Rail.

However, state Department of Transportation officials have said that virtually all construction projects would be delayed unless the highway bill becomes law. Among the $500 million in street and highway projects that would be held up is the already long-delayed Century Freeway.

“The clock is ticking,” warned David Ackerman, executive director of the California Chamber of Commerce. “On April 1, California is supposed to run out of its balance of federal highway funds and basically things come to a halt.”

Joining Ackerman in calling for a veto override were representatives of the state Building Trades Council, the Associated General Contractors of California, the League of California Cities and the Southern California Rapid Transit District, which is building the Metro Rail system.

The House of Representatives is expected to easily override Reagan’s veto in a vote scheduled for today. However, a close vote is expected in the Senate where California’s senators, Democrat Alan Cranston and Republican Pete Wilson, plan to cast their votes against Reagan.

Support Sought

In Washington, Linda Royster, a spokesman for Wilson, said he was urged to support the highway funding bill by Deukmejian Administration officials and by the governor himself during a Sacramento meeting prior to passage of the bill.

“The governor tells us California will have to suspend repairs and certain projects this month unless the federal government extends them additional aid,” Royster said.

Deukmejian was also an early participant in lining up support among the nation’s governors for raising the maximum speed limit to 65 m.p.h. on stretches of rural highways. That provision of the highway bill enjoyed strong bipartisan support.

Deukmejian aides said that just because the governor opposes a veto override does not mean that he no longer supports such transportation projects as the controversial Metro Rail system. They pointed out that the Deukmejian Administration has set aside $400 million in state money for the first segment of the downtown-to-San Fernando Valley transit project. Of that, $110 million has been spent thus far.

But Lois Wallace, an assistant director of the Department of Finance, said the governor’s support of the Los Angeles transit project has always been conditioned on the federal government coming up with its full share of the system’s price tag, now estimated at between $3.7 billion and $4.5 billion.

“He’s not reneging on his commitment, but he’ll have to look at the situation when it comes up,” said Wallace, referring to the state’s continued support for Metro Rail.

Those urging Congress to override Reagan’s veto said the President had misrepresented the facts by labeling Metro Rail and other projects contained in the highway bill as budget busters.

Trust Fund

Richard Munn, executive director of the Associated General Contractors of California, said only about 1% of the $87.5 million allocated by the bill would come from the treasury’s general fund, with the bulk coming from a highway trust fund that is financed by gasoline taxes and specifically set aside for transportation uses.

“This is a user fee in its purest form,” Munn said. “It has no effect on the budget whatsoever.”

Others said there is grave doubt that Congress would be able to agree on a substitute highway bill if Reagan’s veto ultimately is sustained, cutting off the flow of highway money to the states.

“It’s taken over a year to put this bill together,” said Cranston spokesman Murray Flander. “To expect immediate passage of a bill as complex as this is totally unrealistic.”