Transportation Bonding Plan

An article by Robert Fairbanks (Editorial Pages, May 19) criticized Gov. George Deukmejian’s transportation plan with the statement that “ . . . peddling a bond package as a cure for traffic congestion is a little like selling hard liquor as a cure for alcoholism.” This is a distorting analogy because the article ignored major portions of the governor’s plan.

In addition to new transportation construction (mass transit as well as roads), the governor has emphatically called for more emphasis on traffic management techniques to get more capacity out of the system we have. Highway advisory radios, changeable message signs, roving service patrols, and traffic operation centers are just some techniques and new technologies that will be expanded to increase transportation efficiency at a much lower cost than if we simply tried to build our way out of congestion.

The governor has also called for more state, local, and private cooperation to make these new and expanded traffic management techniques work better. In my agency, we are launching an effort to make this happen.

New transportation capacity will certainly require a new investment. General obligation bonds are a proven, traditional tool for providing the new capital infrastructure essential to California’s economic growth and quality of life. The interest cost, which is not being questioned in other public areas of facility finance, is a fair trade-off for doing work now and spreading the cost over the life of the investment. To the extent that state revenue exceeds the constitutional spending limit, added funds may be available to use shorter-term bonds.

The gasoline tax will continue to support the maintenance and rehabilitation of our highways and a considerable amount of new construction. Those who argue for a gas tax increase for our new capacity effort overlook the fact that when sales tax on fuel is added to the consideration California has a total tax on fuels as high or higher than nearly two-thirds of the states.

Coupling bonds with fuel taxes is a move toward a more balanced approach to transportation financing.

JOHN K. GEOGHEGAN

Secretary, California Business Transportation and Housing Agency

Sacramento