California Will Not Complete $77 Billion High-Speed Rail Project (reuters.com)
An anonymous reader quotes a report from Reuters: California Governor Gavin Newsom said on Tuesday the state will not complete a $77.3 billion planned high-speed rail project, but will finish a smaller section of the line. "The project, as currently planned, would cost too much and take too long. There's been too little oversight and not enough transparency," Newsom said in his first State of the State Address Tuesday to lawmakers. "Right now, there simply isn't a path to get from Sacramento to San Diego, let alone from San Francisco to (Los Angeles). I wish there were," he said. Newsom said the state will complete a 110-mile (177 km) high-speed rail link between Merced and Bakersfield. In March 2018, the state forecast the costs had jumped by $13 billion to $77 billion and warned that the costs could be as much as $98.1 billion.
California planned to build a 520-mile system in the first phase that would allow trains to travel at speeds of up to 220 miles per hour in the traffic-choked state from Los Angeles to San Francisco and begin full operations by 2033. Newsom said he would not give up entirely on the effort. "Abandoning high-speed rail entirely means we will have wasted billions of dollars with nothing but broken promises and lawsuits to show for it," he said. "And by the way, I am not interested in sending $3.5 billion in federal funding that was allocated to this project back to Donald Trump."
California planned to build a 520-mile system in the first phase that would allow trains to travel at speeds of up to 220 miles per hour in the traffic-choked state from Los Angeles to San Francisco and begin full operations by 2033. Newsom said he would not give up entirely on the effort. "Abandoning high-speed rail entirely means we will have wasted billions of dollars with nothing but broken promises and lawsuits to show for it," he said. "And by the way, I am not interested in sending $3.5 billion in federal funding that was allocated to this project back to Donald Trump."
Something that can't go on forever, won't.
Or maybe it really should be - sooner or later, you run out of other people's money.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
>> would cost too much and take too long. There's been too little oversight and not enough transparency
That's usually a feature, not a bug, in government projects. How can you pay off your buddies if people can see who's getting paid?
Ineptocracy (in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.
Why can China figure out how to construct 18,000 miles of high speed rail, and we can't even figure out how to connect LA to SF?
High speed rail... dark side of the moon... mass production of consumer goods... America is failing repeatedly, with or without Trump.
Remind me... how did the last civil war go for the secessionists?
It'd be a shame of Trump ordered the arrest of Newsom and anyone else not obeying federal law.
No doubt #Resist will start a drum circle in protest, that'll show em!
create a contract that penalizes the other party for late delivery? If you give the contractor 5x the base price and still have nothing to show for it, you should be jailed.
Government contracts are not supposed to be an endless trough of money.
"In January 2017, the California Legislative Analyst’s Office said by several measures California is, indeed, a donor state, but just barely. It receives $0.99 in federal expenditures per dollar of taxes paid"
So, it's about dead even. Since California based companies and individuals have written off so many state and local taxes on their federal income tax returns for so long, they effectively short out the federal government in favor of state and local taxes. Since the TCJA, there has been a cap on the SALT (state and local taxes) deductions you can make. So it will likely change in the future.
Before TCJA, if you made $100,000 a year and you lived in California, you paid to Uncle Sam less than if you made $100,000 a year and lived in Kentucky (since Kentucky had lower state and local taxes). In fact, California is the highest SALT state, so it paid the lowest to Uncle Sam, all else being equal.
Now, it's closer to normal.
But don't let \ stupid little things like facts keep you from getting angry.
As much of a fan of high speed rail as I am, this project from the beginning was plagued by many issues:
- Distance of SF-LA being just beyond the edge of air/rail travel decision break point
- Lots of intractable property rights issues along the route (and lack of political willingness to exert eminent domain for a more reasonable route)
- High required labor and engineering cost (union requirements)
- Backwards approach to do the easiest part / least useful segment first
- Management team that kept moving the target (or was deceived) on cost, geotechnical feasibility, political backing
As a result, I concluded that despite how good it would be as a showcase project, this was not anywhere near the top of the list of cost-effective things you would invest in to improve CA transportation issues. And now they've had to embrace reality.
I would even say, the whole thing should be canned rather than continuing to dump money into a stupid central valley rail that no one will use. Bakersfield to Modesto? Tell me who's going to take that train...
The worst thing is that this will set a bad example / leave people burned and resistant to trying it again. Sometimes, we really do need authoritarian-style government to clear out resistance when a good project is identified but individual interests bog it down.
Every modern country I ever visited has extensive passenger rail systems that everybody uses. But we can't afford it.
Military adventures in the Middle east costing hundreds of billions? No problem. But no new infrastructure. That's socialism or something.
The idea that the 1% has all the power is a myth. The IRS tax stats are freely available for anyone to see and analyze. The 1% (everyone making approx $500k per year or more) only accounts for 19% of total income in the U.S. The vast majority of economic power in the U.S. (64% of all income) rests with those making $50k-$500k per year.
This is also why the fantasies about giving the 1% a 90% tax rate won't really accomplish much. The 1% simply doesn't make enough money. If you taxed them at 90% (which with certain state tax rates would be a 100% total tax rate), that would only bring in enough money to pay for about a third of the Federal budget. Paying for the Federal government at its current size requires a significant tax rate on those making $50k to $500k, and increasing Federal spending means the taxes on those people has to increase to pay for it.
That said, the ineptocracy happens because currently 61% of the adult population makes less than $50k, and 43% of adults make less than $30k. If you don't flatten income distribution so a majority of the population makes the majority of income, the majority of the population will simply vote to take via government programs what they're not being paid enough to buy on their own. And the end result will be an ineptocracy.
Here are the facts:
Paris to Marseille is a 482 mile drive, compared to 479 miles to Liechtenstein. Today I can buy a Ouigo TGV ticket for 35 euros that will take me from Paris to Marseille in 3h21min.
For comparison:
Compared to the developed world the US is doing poorly in this regard. We have no excuse for these failures other than incompetence and corruption.
> why on earth the project is not a multi-state and multi-nation venture
Because other states and countries don't want to waste billions and billions of dollars on something that isn't working?
He seems to know how to get shit done for half the budget of the Democrats.
Elon Musk proposed a far better and cheaper plan and they ignored it.
Get back to us when he has his idea actually working and with actual cost figures - ones which he has not pulled out of his backside.
The idea that the 1% has all the power is a myth. The IRS tax stats are freely available for anyone to see and analyze. The 1% (everyone making approx $500k per year or more) only accounts for 19% of total income in the U.S. The vast majority of economic power in the U.S. (64% of all income) rests with those making $50k-$500k per year.
Who care about income? Wealth is where the power is.
The top 1% in net worth in the U.S. hold 40% of the nation's wealth. The bottom 50% in net worth of the U.S. population combined hold 1% of the nation's wealth.
Source: https://en.wikipedia.org/wiki/... (First paragraph and first chart.)
Help! I'm a slashdot refugee.
California is going bankrupt. I knew this thing was doomed to failure right from the beginning and have called it out on here many times only to be ridiculed by these big project rail supporters.
Doesn't really bode well for the Green New Deal now does it?