Can Someone Please Loan California $98 Billion So We Can Have Our High-Speed Rail System? Thanks.

Image caption: Mission Bay - An illustration of a high-speed train northbound along I-5 in adjacent to the existing railroad right-of-way. Image via Facebook.

Californians have had their fingers, toes and eyes crossed for a high-speed rail system that connects NorCal to SoCal, promising a more convenient and efficient means to travel the Golden State without ever preparing for take off. But recent news from the state's legislative analyst indicates that this transportation dream may be merely that - a dream.

The analyst says that the California High-Speed Rail Authority's plan for the $98 billion system does not comply with certain parts of the 2008 ballot measure approved by voters to provide seed money for the project.

Huffington Post says that "Proposition 1A required rail officials to identify all sources of committed funds for a usable segment of the line and to clear all environmental requirements before the $9 billion in bonds could be sold." The Authority's latest proposal aims to install a 130-mile stretch of track from Merced to Bakersfield. Serving as a test track for 220mph (!!!) trains, the stretch could also be used by existing Amtrak routes until the high-speed rail's next segment is completed.

However, the Legislative Analyst's Office issued a report on Tuesday claiming that the Central Valley stretch would not be a stand-alone operating segment of the high-speed rail, as outlined in Proposition 1A.

The analyst's office dropped another bomb on the plan, saying the 130-mile stretch "may be all that is ever built." Citing abating federal funding and speculative financing for many of the rail plans, the report said, "It is highly uncertain if funding to complete the high-speed rail system will ever materialize."

On November 22, the California High-Speed Rail Authority announced in a press release that they signed a cooperative agreement with the Federal Railroad Administration that will provide $928 million in federal funding for the construction of the Central Valley segment. The release says that construction will begin in the fall of 2012 in Fresno.

Originally, the price tag for the shiny new rail system totaled $43 billion and was slated for completion in 2020. Now, the estimate has exploded to an uncertain $98 billion; the completion date has been postponed just a few years to 2034 (if ever).

Aside from the escalating budget, the House so kindly passed a spending bill on November 17 that squashed federal funding for the high-speed rail system. California Watch says Republicans want to focus on funding Amtrak's busy Northeast corridor linking Boston, New York and Washington. Oh, it's on, east coast.

Need a little pick-me-up after that sad trombone? Watch Mad Men talk high-speed trains. "America always makes the right investment."

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By Lauren Lloyd in News on November 30, 2011 5:00 PM 0 Comments

Comments [rss]

trojan2002

"Californians have had their fingers, toes and eyes crossed for a high-speed rail system that connects NorCal to SoCal..."
I hope this NEVER gets built. it will never be efficient, it will never save costs, it's a waste.
So I must not be one of your californians.

muthaiga

I have $2.5K left on my line of credit (matching bond funds) and I cannot cover my existing bills (state budget defecit). The roof on my house is leaking (existing infrastructure, schools, etc.), but I don't have enough money to fix it. I'm so depressed. I wish something could make me feel better. What to do? I hear Teslas (HSR) are really cool cars compared to regular cars (Amtrak, bus, Airline, car), so I go down to the Tesla dealership and am told I cannot afford not to buy a Tesla (HSR) because of the jobs it will create, the opportunities it will open up for me and the environment it will save...and oh it will only cost me $33K. So, not knowing how I will pay the monthly payment even at the sale price of $33K, I think it will make me feel better and save on gas, so I charge a deposit to my credit card and sign the papers (shovels in the ground). Of course I trusted the salesman (HSRA and Legislators) and I didn't really read the paperwork (the voters). But then I'm told the price was actually $100K, so I can only have the wheels and tires until I come up with the rest, Meanwhile, it is raining outside...

tjudson

It's always shocking to me that educated people can't separate what might be cool/interesting from what is financial reality. There are two ways one *might* make a viable high-speed rail network (a) like France, you have an extensive existing network with high ridership, where you can upgrade segments over time while always having a viable system, or (b) China, where you absolutely require massive new infrastructure (and you're country is in the phase of dev. that supports that level of spending). And China is slowing down their trains and slowing down/eliminating their network buildout. It's like the Concord, extremely hard to make finacially viable - and when alternatives exist (tons of flights, good highway system) it's completely impossible.

James

The financial reality is, flights aren't cheap and gas isn't getting any cheaper.

Incidentally, the France way still involves plenty of track which is exclusive to TGV only.

The Japan way is sort of like the China way, only with both public and private investment and they haven't stopped building. They have both mainline commuter rail AND high-speed rail.

tjudson

Gas transit is getting cheaper, as mpg keep increasing. And flights are as cheap as proposed rail. Yes, flights are now a hassle due to over reaction to 9/11 - but same thing will happen to HSR (if you want to down a plane for effect, why not a 200mph train - it would be a catastrophy. The TSA would have their groping hands in that terminal too.

China slowed their trains down because they weren't cost effective at super high speed. We could slow them in CA too to reduce costs, but then that 4hr LA-SF trip will become 6... and a flight will still take 1 (plus hassle time).

It was a preposterous deadend @ 40B, @98B (estimated, so assume $150B) it's dead even to most dreamers. Every level of govt. is broke, and no private $ would touch this dog. We might hope it to be different, but those are the annoying facts.

James

We don't need all $98 billion at once. We just need enough money to build a test track, one that could be used to demonstrate the best HSR technology from Japan, Europe and China.

Preferably, we need a "test track" that could be used for more than just HSR while the rest of the project gets built.

A project of this size would attract all sorts of interest, but we have to make the first move.

Also, $98 billion is a fraction of the U.S. defense budget.