In December, the state announced it would halt $3.8 billion worth of construction because of a budget deficit which was expected to reach $40 billion. However, on Friday officials announced it would pay $650 million in unpaid construction bills and allow work to continue on 276 construction projects.
Officials said it would cost more to stop the projects than to continue them. However, if the budget is not resolved in the next few weeks the projects will come to an end.
The California Pooled Money Investment Board (PMIB) treasurer Bill Lockyer said without a budget on February 1, the exempt projects will be halted because there will be no money to fund them.
Currently the state owes about $2.6 billion in unpaid bills for construction projects conducted under various agencies throughout the state.
When the PMIB voted to halt funding in December it said the state could consider taking funds from other sources, including transportation funds, to pay for construction projects.
