Bullet train to devise backup funding plan
SILICON VALLEY / SAN JOSE BUSINESS JOURNAL - BY Eric Young SAN FRANCISCO BUSINESS TIMES
California’s bullet-train executives said Thursday they will study backup plans to pay for the $42.6 billion project if current plans fall through.
The California High-Speed Rail Authority has said it intends to pay for the undertaking, the largest infrastructure project in state history, through a combination of bonds, taxpayer money and private financing.
But the rail authority’s financing plans came under fire recently by the state auditor. In its report, the auditor’s office said plans to build California’s high-speed rail system risk delay due to “inadequate planning, weak oversight and lax contract management.”
The report saved its most pointed criticism for the rail authority’s finances. The auditor’s report said the rail authority estimated last year it needs up to $19 billion in federal money to build the 800-mile system connecting Southern California and the Bay Area. But the authority has no federal commitments beyond $2.25 billion, the report said.
The authority’s plan for spending includes almost $12 billion in federal and state funds through 2013, more than 2.5 times what is now available, the state auditor said.
The rail authority, at its Thursday board of directors meeting, said staffers are working on “a set of alternative project funding scenarios based on best and worst case projected funding outcomes.”
The state’s high-speed rail authority hopes to finalize a bullet train route by 2011 and begin construction by 2012.
In addition, the agency on Thursday released its study on possible locations for stations and tracks for the San Jose to Merced and Fresno to Bakersfield segments of the rail line.
Based on feedback from more than 100 meetings with community leaders, local officials and residents, the California High-Speed Rail Authority’s Preliminary Alternatives Analyses looked at potential station locations and track alignments to decide which ones need further study and to eliminate others due to environmental concerns or impracticality.
The analysis for the San Jose to Merced leg found that an elevated station above the exisiting Caltrain Diridon Station in San Jose would maximize connectivity and development potential in the area.
It also recommends running the track for the approach to the Diridon station along the State Route 87/Interstate 280 freeway corridors to minimize impacts to the Greater Gardener neighborhoods in San Jose.
The full text of the release is available here.
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