Cap-and-trade share not close to $ bullet train needs
Gov. Jerry Brown has managed to secure a steady source of funding — cap-and-trade fees related to AB 32 — for his $68 billion bullet-train project. It appears that he did so by winning teacher unions’ support with a simply bizarre budget provision forcing school districts to spend down their reserves, which inevitably means more money for teachers.
But as a very useful article in the Sacramento Business Journal points out, this isn’t nearly the good news that Dan Richard and other bullet-train boondoggle bandwagoners will pretend:
“Lawmakers have reached a deal on funding the California High-Speed Rail Authority up to a projected $250 million beginning in fiscal 2015, far less than the agency expects it will need to cover construction costs at that time, which is roughly $4 billion a year.
“While the financing deal is not final, the plan to fund high-speed rail through 25 percent of future cap-and-trade proceeds was approved by a state budget panel Thursday in advance of a budget floor vote expected by Sunday night.”
Bad news for bullet train in Cantor wake
There’s also another development that bodes ill for the bullet train: the single biggest congressional critic of the project is Rep. Kevin McCarthy, R-Bakersfield.
He’s going to be the new House majority leader soon as a result of the Eric Cantor defenestration. And he’s likely to be House speaker in a couple of years. John Boehner was the subject of retirement rumors even before his No. 2 was ousted in a Virginia primary, which is an implied rejection of Boehner as well.
If the dominoes keep falling and McCarthy becomes speaker, nothing would make him look weaker than Congress renewing federal funding for the fiasco that threatens to tear up his district.
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Kashkari calls it a “crazy train.” Perhaps he’s right in his assessment, but the need for improved transportation in a growing state is on the table and necessary. What to do? Put a hold on the HSR system and look at infrastructure repairs and development. Lower the corporate tax and provide incentives for businesses to come to California. Copy what New York is doing and act like Texas Governor Rick Perry…get out there and market the state.
Kashkari will of course lose
but he may be very accurate on the crazy train.
Nope….the train will be profitable……inter urban movement of small packages and junk mail will save the day…
Everyone knows passenger traffic will be uneconomical unless airports and mega industrial complexes are built adjacent to rail lines. Hint……hint….
right as always Queeg….
By the end of Brown’s next term (in late 2018) HSR will have been shown to be a money sink. Key route segments will be tied up in court, environmentalists will be livid about the misspent cap and trade money, and federal funding will have evaporated long ago. No candidate for Governor in 2018 will be foolish enough to support the program. The State will be left with a rail system so incomplete and dysfunctional that bond debt will have to covered by other than system revenues (rainy day fund, general fund). The sooner this thing is terminated the better, for all involved — including Jerry Brown and his legacy.
One thing about CWD that needs upgrading….positive, short and pithy posts!
The train lives…
Well said Queeg– on a positive note seems like Duncey and Poodle -girl are taking a break from the rants to perhaps take a jr. college writing class?
(did they get their GED yet?)
They must be at that forsaken Quartzite, Arizona getting lathered up over the next doomer meet up. Donkey making a stop over in Oatman to rub shoulders with the locals….