California’s High Speed Spending on the Big-Dig West

 

Bracing for $20B deficits annually through 2015, it’s time to set priorities. Cuts to education, public safety, underfunded pensions, borrowing and deferring payments to local government should sound an alarm. Those outside California are certainly weighing in; our debt rating is the lowest in the nation, comparable to Mexico and Brazil. Yet we continue to borrow and party as if it were 1999. The proposal for High Speed Rail, typifies the high-speed spending mentality that has brought our state to its knees.

Visions of a European U-Rail system, which would pay for itself, sold the Legislature and the voters on the San Francisco to San Diego route. Ignoring the current economic climate, the reality versus what was sold is beginning to unfold. Such as:

• Inadequate projections due to uncertainty in ridership and fluctuations in fares
• Need to purchase undetermined rights-of way from communities that may object
• Lack of committed future funding sources (public or private) beyond the $2.3B in Federal Stimulus dollars which must be matched with our taxpayer bonds
• Increasing staff without specific performance or tracking mechanisms in place
• New proposals for a “revenue guarantee” could skirt the operating subsidy prohibitions in the voter approved Pop 1A 2008, but puts California taxpayers on the hook for billions in future payments to private investors.

Specifically, the People of California could be saddled with billions in debt without an investment-grade analysis, for a duplicative train system costing upwards of $40-60 B.

Undeterred, the HSR dream-team is “hoping” to see funding from:

• Additional federal stimulus dollars (which are not committed)
• Private investors (which will not commit unless the train is profitable or subsidized)
• Local municipalities that will be “cost-sharing.” Translation:  more taxes on you.

Self-help counties that already assess additional tax on their constituents for local transportation needs are one of the financing targets. My district in Orange and San Diego County approved an additional ½% sales tax for local road, freeway improvements, and existing public transit that we want and are willing to pay for.

Many counties, such as Orange and San Diego, did not approve the 2008 bond for $9.7B in seed money to build the “dream.”  But, if not de-railed, every county may be stuck paying for the HSR experiment, at a time when the state is “borrowing” their money.

In addition, the HSR track could take hundreds of pieces of private property doubling the cost projections. So, we the taxpayers will condemn private property and tax ourselves for yet another train in addition to the existing, already subsidized trains. And much of the local, state and federal dollars now allocated to local public transit may also be derailed for HSR. What a deal!

And who are we hiring to stimulate our California economy? None other than Parsons Brinkerhoff, over-budget and answering charges for the Boston Big Dig, and out of state and country firms. This high speed spending plan is bad news for California’s workers, economic recovery and taxpayers. In light of the unfolding revelations it’s time to set priorities and slow this train down.

We can stop this train wreck with your support for AB 2121 being heard in Assembly Transportation Committee on April 19th.

Assemblywoman Diane Harkey represents the 73^rd Assembly District including Dana Point, San Juan Capistrano, San Clemente, Laguna Niguel, Laguna Hills, Aliso Viejo, Oceanside and Camp Pendleton.