Bankrupt California Approves $70 Billion Rail Project

Posted by on Jul 07, 2012 at 10:37 am

Despite deepening doubts about the cost and feasibility of a $70 billion high-speed rail proposed to cross California, the State Senate on Friday narrowly approved legislation to spend $8 billion in federal and state money to begin construction, starting with a 130-mile stretch through the rural Central Valley.

The vote came as the federal government threatened to withdraw $3.3 billion in financing for the 520-mile project if the Legislature did not approve the release of state bond money to begin construction. Democrats and Republicans expressed fear that the project could be remembered as a boondoggle passed when the state is struggling through a fiscal crisis.

Polls suggests that voters have turned against the project after voting for it in 2008. Several Democrats, in arguing against the expenditure, warned that voters would be less likely to approve a tax package on the ballot this fall that Gov. Jerry Brown, a Democrat, said was necessary to avoid more cuts in spending on education and other programs.

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One Response to “Bankrupt California Approves $70 Billion Rail Project”

  1. chris on 9/09/12 at 7:25 pm

    This is basically looting disguised as a vote.
    Those voting for the choo choo train studies have no interest in whether it is actually built or what it might cost.

    They were confronted with losing stimulus funding of which a good portion will go to endless studies on that leading edge 19th century technology. A couple farms will be ruined, some insiders will get their parcels purchased but mainly consultants, lawyers, experts, politicians and other parasites will eat up the morsels handed out by the tax ticks in DC.

    But..the vote also frees up hundreds of millions from Uncle Sugar for local boondoggles and the State hasn’t been able to provide for the thieves in a manner to which they have become accustomed. No yes vote = no local boondoggles. Message came right from Pelosi’s botoxed lips.

    Next step is to issue billions in CA state bonds supposedly targeted at the RR project. They will probably be General Obligation issuances as no one in their right mind would buy a revenue bond from this joke of a project. And sooner or later, the profligacy of the solons will be met with a buyers’ strike in the bond market.