California, Federal Gov't to Split $7.9B USD Cost of High-Speed Rail Bid
July 9, 2012 12:18 PM
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New rail line will allow trips between the Bay Area and LA in under 3 hours
California, a state of 37 million people, is fast growing and in many ways almost a country unto its own. The state in many cases is the best-case scenario for
high-speed rail in America
, and thanks to voter approval, the state will be trying to implement precisely such a system, despite high costs. The plan received a final green light via Senate ratification of a
general funding bill
[PDF] and will now begin.
I. The Nation's Largest Bullet Train Bid Takes Off
The project will
build out high-speed lines
between the San Jose/San Francisco are (southern California) and San Diego/Los Angeles (the Bay Area). The first phase of construction will complete a line from Los Angeles to the central valley of California, while a second push will finish the connection to the Bay Area.
The project is expected to take up to 20 years to complete due to the massive construction effort needed, coupled with the expected hurdles such as
suits from environmentalists
and private property owners.
[Image Source: U.S. DOT/State of Calif.]
But the payoff will be 2 hour, 40 minute commute between LA and San Francisco aboard a state-of-the-art 220 mph train.
The project is not without its dangers. First and foremost, it is a very expensive bid for a state that is already cash strapped. California is ponying up $4.6B USD, in return for $3.3B USD in grants from
President Obama's Stimulus Bill
. The project will be financed by bonds, with $2.6B USD needed for the initial 130-mile stretch of track.
II. Ideological Divide
While voters in the state approved the bond plan, support in recent weeks sunk from 52 percent to 39 percent amid reports discussing the financial concerns. The approval by the state senate was a close 21-16 vote along party lines.
At a time when many are calling for a return to conservatism in America, the sweeping expansion of one of America's largest socialistic institutions -- the government owned transportation lines (private-public rails, federal highways, state highways, etc.) is fodder for much debate.
Some conservative think tanks say we should be moving to privatize the federal highway system, not adopting broader socialism. [Image Source: Wikimedia Commons]
Advocates argue transportation routing is a non-excludable good and by its very definition a "public good", hence an ideal candidate for mild socialism. Some critics have gone as far as to suggest
privatizing the federal highway system
and scrapping high-speed rail bids, as well.
Many believe the project passed only due to heavy eleventh hour lobbying by Democratic Governor Jerry Brown, who swayed his party colleagues to overlook potential short-term fallout from their voter base.
III. Advocates Hail Victory as Job-Creator
U.S. Department of Transportation
Secretary Ray LaHood
, "No economy can grow faster than its transportation network allows. With highways between California cities congested and airspace at a premium, Californians desperately need an alternative."
President Obama was a vocal supporter of the plan.
President Obama and his DOT say the project, which mixes state bonds and federal funds will drive job growth. [Image Source: U.S. Aid]
Europe, China, and Japan all have high-speed rail systems. However, rail in the U.S. is light in both speed and usage. In theory high-speed rail systems have many advantages, including speed, congestion reduction, and cost. However, U.S. rail projects have suffered from budget bloat and from the challenging of dealing with the U.S.'s sparser population outside its cities.
Critics are swift to point to failures overseas, such as China who recently was forced to slow trains along its
burgeoning $1T USD line
allegations of corruption and substandard construction materials
. However, Germany, France, and
all have very successful systems which service millions and have opened new economic opportunities.
President Obama and Governor Jerry Brown believe the new line will create jobs, and they're both eager to put their money where their mouth is.
IV. Critics Sound Off
State Sen. Tom Harman
(R, Huntington Beach) conjured the spectre of the embattled $398M USD Gravina Island Bridge in Alaska, which was colloquially referred to as the "bridge to nowhere" in the 2008 presidential race. He commented, "It's unfortunate that the majority would rather spend billions of dollars that we don't have for a train to nowhere than keep schools open and harmless from budget cuts."
The comment may seem a slight to Bay Area residents, but the rhetoric stems from the fact that the first phase of construction will only travel through the central valley region of the state, stopping short of the Bay Area. The Bay Area will be connected in the second phase push.
State Sen. Tony Strickland
(R, Moorpark), a Republican running for U.S. Congress in the fall, comments, "This bill is spending money we just simply don't have here in California."
California is racing ahead with high-speed rail, despite objections.
[Image Source: U.S. DOT/State of Calif.]
Indeed, the timing might not be ideal, but for better or worse Calif. is forging ahead with high-speed rail. Amid a divided state government and equally deep ideological divides across the nation as a whole, all eyes will surely be on this bold experiment in transportation and union/state mixed socialism in years to come.
Calif. State Senate
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RE: What this article fails to mention...
7/10/2012 8:59:06 PM
The transcontinental railroad wasn't encumbered with the: EPA and other federal acronyms wanting their own 10 year studies not liking their or the other's results and then wanting to do another 10 year study, environmentalists who don't want progress of ant kind, land owners not wanting a railroad until someone writes a massive check for their mostly worthless property (back then it put you on the map and money in the bank to have one), whomever has their panties in a twist, and whatever bureaucrats invent to add to the rules.
No, I am not against rational rules. We don't have rational rules. I spent several years in the military tracing end-user rules back up to the originating federal law. I was astounded how creative rule writers were. Much of the stuff they invented had little to no relevance to the law. The vague laws don't help either.
My question is who is getting all the money, I know we are getting the shaft.
BTW LA to San Fran? Disneyland to LA to Vegas is the sensible route in Ca. If LA to San Fran were so great the railroads would be doing it now. They don't because passenger rail travel is a money loser. Amtrak has not made money yet and likely never will so long as the government has their fingers in it.
"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007
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