Use of the 73 toll road last fiscal year was roughly half of what was predicted, and those numbers have dropped further this year. Several years ago the road's bond ratings were downgraded to junk status. The 241, 261 and 133 toll roads have generally fared better, but recent usage has also been slipping.
"Even if there was an economic recovery and even if the toll roads were doing just fine, this would be an unjustifiable use of taxpayer money," White said.
For The Record
Los Angeles Times Saturday, October 18, 2008 Home Edition Main News Part A Page 2 National Desk 2 inches; 65 words Type of Material: Correction
Toll agency loan: A headline on an article in Friday's California section about the effort by Orange County's Transportation Corridor Agencies to acquire a $1.1-billion government loan said the agency is requesting a federal bailout. The word "bailout" should not have been used. The agency is requesting a federal loan, to be repaid with future toll road revenue, to help refinance the agency's existing debt.
Responding to questions about the system's financial viability, Telles said the agency has "always been able to make our debt service payments, we've always been able to pay our expenses," and is not in danger of defaulting on current bonds. Though she acknowledged the current economic woes have reduced traffic nationwide, she anticipates a long-term recovery in toll road use.
The agency is applying for the money through the Transportation Infrastructure Finance and Innovation Act administered by the U.S. Department of Transportation. The act, which is largely designed to help fund transportation projects of national and regional importance, distributes an average of more than $2 billion in credit help each year.
The largest loan to date was $917 million for the Central Texas Turnpike.
Other loans have included $140 million to build a San Diego toll road and $600 million to update aging equipment of the Washington, D.C., mass transit system.
Because infrastructure companies are likely to be hit particularly hard by the credit crunch, appealing to the federal government for funds makes sense, said Lisa Schweitzer, an assistant professor in the School of Policy, Planning and Development at USC.
The risk, Schweitzer said, is whether those toll road revenues will eventually pan out: "It's actually not that easy to make money on roads."
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susannah.rosenblatt@ latimes.com
