Caltrans has failed in a bid for an $8 million transfusion of local funds to stave off a construction halt on the Lincoln Bypass.

A work stoppage on the $325-million project could now take place within days, Executive Director Celia McAdam told South Placer Regional Transportation Authority board members on Dec. 23.

Caltrans had asked the authority to advance funding from regionally collected development fees to keep work on the bypass project moving ahead.

The South Placer transportation authority has $8 million in funding that could have been freed but directors, with McAdam’s support, decided against a move that would have shored up funding for a maximum of 60 days.

Caltrans’ request came days after the Pooled Money Investment Board – the state panel that oversees loans for infrastructure projects – shut off financing to hundreds of projects throughout the state because of the state’s budget crisis.

Lincoln Councilman Tom Cosgrove, a longtime bypass advocate, described the decision to shut down infrastructure projects as “unbelievable” last week.

Legislators and Gov. Arnold Schwarzenegger failed to act on an increasing budget deficit, Cosgrove added.

Shutting down the bypass project is expected to add an additional $10 million to its cost when work resumes again, while delaying completion by another year, McAdam said last week.

Cosgrove said that the authority shouldn’t risk having its cash flow diminished by forwarding funding to the state.

McAdam said there was no guarantee after the 60 days of funding that Caltrans would either continue the work or make up the costs incurred through the use of local developer fees.

The $8 million would have replaced bond proceeds and state funding no longer available to make monthly progress payments to the construction contractor.

The authority is now paying $1 million a month as part of the cooperative agreement with the state on the bypass.

“Right now, things change almost on a daily basis,” Cosgrove said Tuesday. “Work will continue on and we’re checking to make sure we’ve got the funding we need. We’re still trying to look at a number of different options but we haven’t got anything firm and set yet.”

Cosgrove added that the holidays have impeded the progress of finding a solution.

“Getting a budget in place (on the state level) gives us the stability that we need,” Cosgrove said. “We’ll know then what we have to work with. Right now, we don’t know and that’s difficult. It’s all in limbo until the state gets a budget revision.”

Despite this “big hurdle,” Cosgrove said he is confident that the project will be completed.

“We’re going to make every possible effort to make sure this project stays on track. The fact that it’s under construction… begs to be finished.”

James Marabel, who lives in Lincoln Crossing, said the prospect of the bypass being put on hold is horrible.

“I don’t know how good that will be for the resale value of my house, when people can see the construction project from the upstairs windows,” Marabel said.

Denise Weber lives in Sheridan but works in Lincoln. As a result, she drives the current Highway 65 route on her way to and from work.

“I’m afraid of bottlenecking,” Weber said. “When there are concerts, it can be really hard to get home.”