Facing a $40 million shortfall, the Highway 101 widening project has run into a rough stretch on the road to completion.

The Santa Barbara County Association of Governments is trying to come up with ways to keep the project moving forward, and last week met with the Technical Transportation Advisory Committee to discuss options.

The massive budget gap stems from deficiencies with Measure A, the half-cent local sales tax that voters approved a year ago. At the time, estimates indicated the measure would generate more than $1 billion for local road repairs and transportation projects over the next 30 years.

But with a decline in sales tax revenue because of the economic downturn, Measure A is now projected to bring in $10 million less than expected over just five years.

The California Transportation Commission has informed regional transportation agencies that there won’t be any new monies for improvements for the next year, and SBCAG officials are anticipating the withdrawal will carry through 2012. Those funds come primarily from the state’s gas tax, which has also been affected as motorists drive less, accounting for the other $30 million.

The financial headaches come right in the middle of a huge slate of improvement projects, the most visible being the widening of HIghway 101 between Hot Springs Road and Milpas Street. That four-year, $53 million project is funded by Proposition 1B and $13 million from Measure D.

“We’re trying to figure out ways to keep those projects going,” SBCAG spokesman Gregg Hart told Noozhawk, referring to additional plans to widen the freeway to the Ventura County line.

Regional Surface Transportation Program funds are federal monies that originate from the federal gas tax and are allocated to organizations like SBCAG. The agency receives about $3.5 million to $4 million a year from the program.

“Historically, we’ve used those on-call and we get all kinds of different requests from local agencies,” Hart said.

In the past, regional transportation program funds have gone to a range of projects, like bridge replacement and road rehabilitation. Officials are considering suspending that process and may not be asking local agencies for new projects; instead, they could direct the funds to the widening project.

“That’s caused a fair amount of controversy,” said Hart, explaining that local agencies are concerned about not having access to the program’s funds.

Members of the Technical Transportation Advisory Committee have asked SBCAG to hire a lobbyist to go after some discretionary funds in Sacramento.

“This is a huge regional project,” Hart said. “We can’t do it alone.”

Hopefully, he said, supplemental money will become more available with that kind of approach.

Although the demand on federal dollars is heavy these days, Hart said it’s not impossible to get a share. More than $40 million of stimulus funds was awarded for Santa Maria levee improvements. The project officially broke ground in October.

“If our community really rallies together, we have a great case because we have local funds to match,” Hart said. “It’s going to take a lot of focused efforts.”

Hart said the SBCAG board hopes to make a decision at its Dec. 17 board meeting.

“There does seem to be a consensus that has to be the highest priority,” he said of the widening project.

In the meantime, construction continues on the roadway, although crews will not be working Thursday and Friday in observance of Thanksgiving. According to project spokeswoman Kirsten Ayars:

» The northbound on-ramp at Salinas Street will be closed as needed between 9 a.m. and 3 p.m. weekdays for drainage work.

» Montecito roundabout landscaping is nearing completion.

» Median paving the week of Nov. 30 will require alternating nighttime lane closures on southbound Highway 101 between Sycamore Creek and Cabrillo Boulevard. Weather permitting, southbound lanes are expected to be shifted overnight on Dec. 2.

Noozhawk staff writer Lara Cooper can be reached at lcooper@noozhawk.com.

— Noozhawk staff writer Lara Cooper can be reached at lcooper@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.