Cap-and-trade share not close to $ bullet train needs

Cap-and-trade share not close to $ bullet train needs

highspeedrail-300x169Gov. 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

kevin-mccarthyThere’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.

8 comments

Write a comment
  1. maximilian
    maximilian 13 June, 2014, 12:14

    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.

    Reply this comment
  2. Bud Led Ted S.
    Bud Led Ted S. 13 June, 2014, 20:37

    Kashkari will of course lose
    but he may be very accurate on the crazy train.

    Reply this comment
  3. Queeg
    Queeg 13 June, 2014, 21:03

    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….

    Reply this comment
  4. Bud Led Ted S.
    Bud Led Ted S. 14 June, 2014, 20:17

    right as always Queeg….

    Reply this comment
  5. David Wiltsee
    David Wiltsee 14 June, 2014, 21:23

    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.

    Reply this comment
  6. Queeg
    Queeg 15 June, 2014, 08:09

    One thing about CWD that needs upgrading….positive, short and pithy posts!

    The train lives…

    Reply this comment
    • Bud Led Ted S.
      Bud Led Ted S. 15 June, 2014, 09:01

      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?)

      Reply this comment
  7. Queeg
    Queeg 15 June, 2014, 21:27

    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….

    Reply this comment

Write a Comment

Leave a Reply



Related Articles

Folsom Prison Museum Free!

Anthony Pignataro: Until Nov. 24, that is. But yeah: admission to the Folsom Prison Museum is free (it’s normally $2

Money wins in CA election

JUNE 9, 2010 By JOHN SEILER The entry level of personal worth for winning the GOP nomination for governor now

Calif. leads in state electoral competitiveness

Sept. 10, 2012 By John Seiler California leads the nation in one exemplary category. According to Ballotpedia, the best online