Governor’s budget proposal delays $200M for downtown Fresno. Will it affect revitalization?
About $200 million destined for Fresno to improve downtown streets, sewer and water lines, and streetlights is likely to be delayed a year as California deals with an anticipated multibillion-dollar budget shortfall.
As a result of a forecasted $38 billion revenue shortfall, Gov. Gavin Newsom this week outlined a series of spending delays and other measures, including a one-year deferral of already-approved $100 million allocations in each of the next two years for Fresno’s downtown infrastructure.
Fresno Mayor Jerry Dyer said this week that he “did not anticipate any significant disruptions in our downtown and Chinatown revitalization plans as a result of this delay.” Dyer said he received a call Tuesday night from the governor’s cabinet secretary, hours before Newsom publicly unveiled his budget, about “the governor’s intention to defer the previously committed $200 million by one year.”
“The governor also wanted me to know that he is not backing away from his commitment to downtown Fresno and is still committed to providing the entire $250 million,” Dyer added in a prepared statement.
Fresno has already received $50 million in the current 2023-24 budget as part of the three-year, $250 million commitment Newsom announced in May and that was later approved by the state Legislature.
But under the budget proposal this week, the $100 million for the coming 2024-25 budget year will be put on hold until 2025-26, and the next installment would not be coming until 2026-27.
Since the budget allocation was announced last year, along with another $43.7 million state grant, Dyer’s administration outlined ambitious plans to upgrade the capacity of the infrastructure in the city’s downtown core and neighboring historic Chinatown district. The goal is to support more residential development, boosting the number of people living downtown to at least 10,000 – potentially a critical mass to attract more retailers, restaurants and nightlife to the area.
Before much of the housing can be developed, however, aging water and sewer lines – some well over 100 years old – need to be upgraded, and additional parking structures are also envisioned to provide for the influx of residents and visitors.
Dyer told The Bee last fall that details on much of the work, including which streets, sewer and water lines would be in line for upgrades, were dependent upon consultant studies to determine where best to target the funds.
But the projected state budget deficit creates uncertainty over whether some of the work – planning for which is already underway – might be affected.
In his budget presentation Wednesday in Sacramento, Newsom said efforts to close the anticipated budget shortfall include about $7.2 billion in delays and deferrals of already-approved spending from massive surpluses in previous budget years.
“Some of these things (are) just delayed a little bit, you know,” Newsom said. “Not denied, just delayed. Most of this came from abundance beyond our wildest expectation, and we’re just going to push it out a little bit in order to get where we need to go.”
A spokesperson for Newsom told The Bee on Friday that the governor’s budget “maintains historic investments in Fresno because California’s future depends on a strong and prosperous Central Valley.”
“We know this region is hungry for investment and we look forward to continued collaboration during this challenging budget year,” deputy press secretary Daniel Villasenor added.
Depending on what happens between now and May, when the 2024-25 budget proposal will be finalized, the status of the budget allocation for Fresno could change.
“As a mayor, I recognize the financial challenges facing the state of California and the need to make cuts and defer prior budgetary commitments in order to balance the state budget,” Dyer said. ‘We will continue to be relentless in the pursuit of these dollars and to ensure Fresno receives what was previously committed by the governor and the Legislature.”
About $70 million from the allocation would be used to build two new parking structures with a total of about 2,000 parking stalls, essentially doubling the existing number of city-owned parking spaces in the area, Dyer proposed last May. At that time, the mayor projected that those additional parking spaces would be enough to serve between 2,000 and 3,000 residential apartments in the downtown area.
The city’s plans for other slices of the $250 million financial pie included:
- $80 million for overall infrastructure investments to promote housing development for 10,000 residents and other neighborhood revitalization efforts.
- $25 million for a storm water drainage basin downtown.
- $20 million for an intermodal transit center, in conjunction with a future high-speed rail passenger station, for alternatives to driving, including buses, bicycles and walking.
- $20 million for improvements to streets, sidewalks, curbs and gutters in downtown Fresno and the neighboring Chinatown area.
- $15 million for pocket parks, linear parks and other green spaces.
- $10 million for sewer system upgrades along Fresno and Merced streets in downtown.
- $10 million for a 16-inch water supply loop along H and F streets between Stanislaus and Mono streets.
This story was originally published January 12, 2024 at 5:49 PM.
