Extra Funding Averts Halt in Subway Work
MTA and state transportation officials on Tuesday averted a cash flow shortage and potential work stoppage on the North Hollywood subway project under an agreement to divert $40 million from other uses.
Under the proposal approved Wednesday by the California Transportation Commission, the Metropolitan Transportation Authority will redirect savings from delayed Red Line projects and other areas to cover the costs of North Hollywood subway construction contracts through the beginning of June.
The troubled agency still is more than $160 million short of what it needs to cover contracts from June through the end of the year, but plans are in the works to cobble together the funds from a rail reserve, savings from the Green Line, and other areas, state transportation officials said.
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