WITH NO BOND BUYERS CA AUTHORITY TURNS TO US DOT FOR CASH

Publish Date: 
Tuesday, December 27, 2016 - 8:45am

A Familiar Tale

A recent story in the LA Times should sound very familiar to Floridians concerned about All Aboard Florida:

  • California establishes an authority to look into building a high-speed train to go from Los Angeles to San Francisco.
  • The project starts at $33-billion and gets voter bond backing for $9-billion but with taxpayer protections around the project.
  • With public funds protected and the budget doubling to $67-billion the authority looks for private financing and finds none.
  • With limited funding the Authority starts building short segments that have been approved.
  • With no taxpayer approval and no private backing high-speed rail proponents go fishing for a $15-billion loan from the outgoing Obama administration.

US Department of Transportation Balks

The Authority had hoped to set up a meeting as early as July to discuss the loan. However, the DOT has responded stating "At this time, California has not submitted a financing request," making it appear unlikely the proposal will move anywhere.

Read the entire story at the LA Times and see the similarities and reasons for concern for yourself.