It appears the California high-speed rail project–a transportation system that would link Northern and Southern California via high-speed train–is having a tough time getting on track.
A recent report put forth by the Legislative Analyst’s Office (LAO) asserts that there are a number of problems threatening the successful completion of the system. Among these problems is the “highly uncertain” funding proposed in the 2009 business plan to complete this project, not to mention the federal deadlines linked to the funding.
Initial financing for the project was approved way back in November 2008 when the voters of California approved Proposition 1A. This permitted the state to sell $9 billion in general obligation bonds to partially fund development and building of the rail system.
According to the LAO report, the state has also received approximately $3 billion from the federal government to support the project. The report also reveals the California High-Speed Rail Authority recently approved construction for the first phase of the project, which travels through the Central Valley, from Fresno to Bakersfield. It’s expected the Legislature will be asked to allocate much of the funds for this segment in 2012-13.
With this portion of the rail system expected to cost about $5.5 billion, construction is set to begin in fall of 2012.
However, the report concludes, “the Legislature lacks the good information it needs to make critical multi-billion dollar decisions about the project that it will soon face.”
Now the Legislature faces quite a quandary: Should it continue forward with the high-speed rail project despite the lack of funds? The LAO report said that should the Legislature decide to push forward with the project, two crucial steps must be taken.
First, the Legislature is in need of more time and “flexibility” when it comes to making critical decisions. This would mean that federal funding deadlines and restrictions would need to be altered.
Secondly, vast improvements are needed regarding strategy and organization of the project.
At this point in time, the Legislative Analyst’s Office concludes, “the current governance structure for the project is no longer appropriate and is too weak to ensure that this mega-project is coordinated and managed
effectively.”
On May 10, rail authority Chief Executive Roelof van Ark issued a statement in which he said the suggestions presented by the LAO will be carefully reviewed in accordance with the mandates of Proposition 1A, as well as the federal government.
“I hope to work with the Legislature to come up with solutions that benefit all Californians and allow us to move forward with the successful completion of the state’s high-speed rail system—and we hope that this report at least encourages healthy discussion towards that goal,” van Ark said.
This article appears in May 19-26, 2011.