GOP lawmakers bet bullet train bad news will never end

high speed rail trainWill news about the California bullet train’s cost overruns and missed construction deadlines remain the norm for years to come? Or will the state’s $64 billion project find a groove and make considerable progress in coming years?

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These are the key questions prompted by a concession that some Republican state lawmakers gained in return for helping Gov. Jerry Brown keep alive the state’s greenhouse-gas emissions cap-and-trade program until 2030. The provision could eventually end the state’s high-speed rail project, leaving a massive white elephant in the agricultural fields of the Central Valley. Or the concession could end up yielding a second vote validating a project first approved by state voters in 2008.

The concession – secured by Assembly Republican leader Chad Mayes of Yucca Valley – places a constitutional amendment drafted by Mayes before state voters in June 2018. If passed, it would lead to a one-time up-and-down vote in the Legislature in 2024 on whether to continue allowing the use of cap-and-trade revenue to fund the project. But the threshold wouldn’t be a simple majority. A two-thirds vote would be required to allow continued use of the funds – presumably giving GOP lawmakers a prime chance to pull the plug.

So far, the funding has been substantial in one sense but marginal in the big picture of trying to pay for a $64 billion project. After the fifth year of cap-and-trade distributions, about $1 billion has gone to the California High-Speed Rail Authority, with another $500 million expected this fiscal year. But it is considered crucial because it is the only new funding source Brown has found for the project, which has been unable to gain outside investors because of rules banning public subsidies for bullet-train operations.

Rail authority chair Dan Richard says he isn’t worried about a public veto in seven years: “By 2024, we’re going to be deep into construction. We’re going to be on the verge of opening the first service. We’ll be seeing Google and others making massive investments in areas around high-speed-rail stations. The case will be there for the importance of continued funding,” he told the San Francisco Chronicle.

The authority’s 2016 business plan said the state expected to have $21 billion in hand from state bonds, federal grants and cap-and-trade funds to build a segment from San Jose heading south.

Feds expect cost overrun of 48% or more on first segment

But Mayes and other GOP lawmakers are betting that from here until 2024, the bad news about the project will never stop.

Lawyers for the Central Valley farmers and the government and civic officials they represent in lawsuits against the state government like to point out that – apart from court victories allowing the project to continue to spend public monies – there has been no substantial encouraging news about the project in years.

In January, the Los Angeles Times reported that it had obtained a confidential Federal Railroad Administration risk analysis that predicted a cost overrun of 48 percent or more on the initial 118-mile segment in the Central Valley. What the Brown administration has been saying would cost $6.4 billion is instead likely to be $9.5 billion to $10 billion, federal officials warned.

The idea that voters will be pleased with what they see in 2024 could be difficult to square with what rail authority officials told avisiting congressional delegation in August 2016: that construction is expected to stop in the middle of an almond orchard 30 miles northwest of Bakersfield when the money runs out.

This is contrary to promises made to voters in 2008 to get them to provide $9.95 billion in bond seed money for the project. They were guaranteed no construction would begin until the state could guarantee its initial segment would have financial viability without any more train tracks being laid.

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  1. retiredxlr8r says

    Milestones will come and go. Cost overruns will be the norm and change of management will be common.
    Yep! It will always be in the news. Unless it comes to a complete stop and those funds wasted on this debacle are redirected towards the important problems and issues facing California Citizens, like water, energy, roads, commute transportation, and respectable representation in the state legislature and the governor’s office.
    I see no hope of progress under Brown, he’s writing checks that Citizens cannot cover. He’s taking away basic freedoms and turning his government into ground zero for tyranny.
    Nope, don’t like Brown, Democrats, or the high speed train!

  2. PPL riot against Trump, but Moonbeam and the demorats can do anything. Saddle us with untold debt for our kids, grandkids and their kids.
    More proof the demorats really DO NOT CARE about the poor. These taxes are harder on the poor PPL than anyone. Now Cap & Trade Tax on top of everything else. Why is treason and sedition not used to remove and jail these communist leaders? WAKE TO HELL UP DUMBELLS AND GET RID OF THESE TRAITORS.

    • THE CAPTIVE says

      This whole state is controlled by corruption — from the hateful jerry brown down to the insanity of nazi-islamic Common Core. It is showing how this corrupt and illegal the governance of CA. can be. When imams can be as antisemitic as possible and get away with it -that is right out there with corruption. We live in a state where laws do not matter but doing anything against the laws and will of the people is just fine 🙁

  3. Can we not get an initiative on the ballot to defund or eliminate the odious AB32 and cap-n-trade? After everyone’s gas prices go up 60-80 cents a gallon, it would certainly pass. There are four people who should be run out of office: Brown, deLeon, Rendon and Nicholls.

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