Auditor Raises New Concerns About California High-Speed Rail

SACRAMENTO (CBS SF) – The state auditor has released a new report on California’s high-speed rail project, raising new concerns about how it will be financed.

In the report, the auditor said the latest high-speed rail business plan relies on uncertain funding sources and financing for the project has become increasingly risky.

“The High-Speed Rail Authority is estimating that to complete phase one of the program, it’s going to cost between $98.1 and $117.6 billion,” said auditor spokesperson Margarita Hernandez. “And to date, they have only secured about $12.5 billion.”

KCBS’ Chris Filippi Reports:

But Lance Simmons with the High-Speed Rail Authority said the project is on sound financial footing.

“We will work very closely with our federal partners at the Federal Railroad Administration and with the federal government to try to identify funding sources,” Simmons said.

The auditor’s report also estimates that it will cost nearly $97 billion to operate and maintain the rail system from 2025 to 2060.

Opponents of the high-speed rail project have been given the go ahead by the Secretary of State to start collecting signatures for an initiative that would eliminate the High-Speed Rail Authority.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Comments

One Comment

  1. Bay Area Guy says:

    it’s going to cost between $98.1 and $117.6 billion,” said auditor spokesperson Margarita Hernandez. “And to date, they have only secured about $12.5 billion.”

    People we need to stop this train wreck before it happens. They can not raise enough money to cover the differnce between what the THINK it wil lcost. AND THAT’s just phase ONE.

    Lets spend the 12.5 BILLION on paying down our debt.

  2. PLW says:

    Quit spending and start paying off California debt!!!!!

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