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	<title>bullet train cost overrun &#8211; CalWatchdog.com</title>
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		<title>Report on massive cost overrun may be turning point for troubled bullet train</title>
		<link>https://calwatchdog.com/2018/01/28/report-massive-cost-overrun-may-turning-point-troubled-bullet-train/</link>
					<comments>https://calwatchdog.com/2018/01/28/report-massive-cost-overrun-may-turning-point-troubled-bullet-train/#comments</comments>
		
		<dc:creator><![CDATA[Chris Reed]]></dc:creator>
		<pubDate>Sun, 28 Jan 2018 20:36:22 +0000</pubDate>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[bullet train cost overrun]]></category>
		<category><![CDATA[audit of bullet train]]></category>
		<category><![CDATA[califorhia high speed rail authority]]></category>
		<category><![CDATA[California bullet train]]></category>
		<category><![CDATA[Jerry Brown]]></category>
		<category><![CDATA[Jim Beall]]></category>
		<category><![CDATA[LAO]]></category>
		<category><![CDATA[Jim Patterson]]></category>
		<guid isPermaLink="false">https://calwatchdog.com/?p=95536</guid>

					<description><![CDATA[Despite Gov. Jerry Brown’s full-throated defense of the troubled bullet train project in his State of the State speech Thursday in Sacramento, a consultant’s report warning of a huge cost]]></description>
										<content:encoded><![CDATA[<p><img fetchpriority="high" decoding="async" class="alignnone size-full wp-image-78919" src="https://calwatchdog.com/wp-content/uploads/2015/04/bullet.train_.jpg" alt="" width="300" height="300" align="right" hspace="20" srcset="https://calwatchdog.com/wp-content/uploads/2015/04/bullet.train_.jpg 300w, https://calwatchdog.com/wp-content/uploads/2015/04/bullet.train_-220x220.jpg 220w" sizes="(max-width: 300px) 100vw, 300px" /><span style="font-weight: 400;">Despite Gov. Jerry Brown’s </span><a href="http://www.kcra.com/article/gov-brown-defends-bullet-train-water-tunnels-in-state-of-the-state/15881564" target="_blank" rel="noopener"><span style="font-weight: 400;">full-throated defense</span></a><span style="font-weight: 400;"> of the troubled bullet train project in his State of the State speech Thursday in Sacramento, a consultant’s report warning of a huge cost overrun on the project’s first segment in the Central Valley could end up a turning point in the high-speed rail saga.</span></p>
<p><span style="font-weight: 400;">The cost of the 119-mile segment was originally estimated at $6 billion. But the main consulting firm on the project, WSP (formerly Parsons Brinckerhoff), told the California High-Speed Rail Authority’s board at a recent meeting that it was now projected at </span><a href="http://www.latimes.com/local/california/la-me-bullet-train-cost-overrun-20180116-story.html" target="_blank" rel="noopener"><span style="font-weight: 400;">$10.6 billion</span></a><span style="font-weight: 400;"> – a 77 percent increase.</span></p>
<p><span style="font-weight: 400;">The fact that the overrun was so high on the part of the statewide project with the least-challenging geography appeared to startle some rail authority board members and some Democratic state lawmakers. </span></p>
<p><span style="font-weight: 400;">On Tuesday, Assemblyman Jim Patterson, R-Fresno – a longtime bullet train skeptic – was joined by Sen. Jim Beall, D-San Jose, in a letter asking for a </span><a href="http://www.sandiegouniontribune.com/news/california/la-me-bullet-train-audit-20180123-story.html" target="_blank" rel="noopener"><span style="font-weight: 400;">formal state audit </span></a><span style="font-weight: 400;">of the $67 billion project. Beall is chairman of the Senate transportation committee.</span></p>
<p><span style="font-weight: 400;">The letter was sent to Assemblyman Al Muratsuchi, the Torrance Democrat who chairs the Joint Legislative Audit Committee. It has the authority to direct state Auditor Elaine Howle to audit the bullet-train project without the blessing of the governor, who in 2016 </span><a href="https://ww2.kqed.org/news/2016/09/29/governor-vetoes-high-speed-rail-oversight-bill/" target="_blank" rel="noopener"><span style="font-weight: 400;">vetoed a bill</span></a><span style="font-weight: 400;"> that would have increased oversight of the project and the rail authority. Previous calls for an audit have been blocked by Democratic lawmakers.</span></p>
<p><span style="font-weight: 400;">While the bullet train has been regularly scrutinized by the nonpartisan Legislative Analyst’s Office, its reports tend to note problems without offering harsh criticisms or sweeping judgments. </span></p>
<h3>State audit could influence vote on June bullet-train ballot measure</h3>
<p><span style="font-weight: 400;">By contrast, Howle takes no prisoners if she believes she has evidence of incompetent management, deceit or secrecy. In the past two years, her scathing criticism of the University of California over admissions policies that more than</span><a href="http://www.sacbee.com/news/politics-government/capitol-alert/article68782827.html" target="_blank" rel="noopener"><span style="font-weight: 400;"> tripled out-of-state students</span></a><span style="font-weight: 400;"> at UC campuses and over UC President Janet Napolitano’s</span><a href="http://www.latimes.com/local/lanow/la-me-uc-audit-interference-20171122-story.html" target="_blank" rel="noopener"><span style="font-weight: 400;"> aides’ interference</span></a><span style="font-weight: 400;"> with her office’s attempts to gather information led to admission policy changes and to a state law barring such interference by state agencies.</span></p>
<p><span style="font-weight: 400;">If the state auditor was directed to review the bullet train project in coming weeks and completes her report faster than usual, it could affect a bullet train-related measure on the June primary ballot.</span></p>
<p><span style="font-weight: 400;">Last July, then-Assembly Republican leader Chad Mayes of Yucca Valley agreed to help Democrats round up enough GOP votes to extend the state’s cap-and-trade program until 2030 in return for the Legislature ordering the placement of a Mayes-drafted constitutional amendment </span><a href="https://calwatchdog.com/2017/07/24/gop-lawmakers-bet-bullet-train-bad-news-will-continue/"><span style="font-weight: 400;">before state voters</span></a><span style="font-weight: 400;"> in the primary.</span></p>
<p><span style="font-weight: 400;">If it won approval, the </span><a href="https://ballotpedia.org/California_Vote_Requirement_to_Use_Cap-and-Trade_Revenue_Amendment_(June_2018)" target="_blank" rel="noopener"><span style="font-weight: 400;">amendment </span></a><span style="font-weight: 400;">would mandate that in 2024, the Legislature must have an up-or-down vote on whether to continue allowing the state government to use cap-and-trade revenue on the bullet train – with a two-thirds threshold for approval in both the Assembly and Senate.</span></p>
<p><span style="font-weight: 400;">Cap-and-trade auction funds are the only firm source of revenue the rail authority will have after spending the remaining $10 billion in funds left from a $3.3 billion grant from the Obama administration and the original $9.95 billion in state bond funds that voters approved for the project in 2008.</span></p>
<p><span style="font-weight: 400;">Cutting off the bullet train’s access to cap-and-trade dollars could kill the project without it ever having carried a passenger – leaving a massive white elephant in the Central Valley. Even before the overrun was reported, authority officials said in 2016 that they </span><a href="http://www.latimes.com/local/california/la-me-bullet-hearing-20160829-snap-story.html" target="_blank" rel="noopener"><span style="font-weight: 400;">didn’t have enough money</span></a><span style="font-weight: 400;"> to build their planned segment linking San Jose with Bakersfield. Officials told a U.S. House subcommittee hearing that the project’s eastern terminus would be an </span><a href="https://www.google.com/maps/place/Wasco,+CA+93280/@35.5849602,-119.4068185,13z/data=!3m1!4b1!4m5!3m4!1s0x80eafe6207aa0193:0x3c8f6af94f91aa5!8m2!3d35.5941238!4d-119.3409457" target="_blank" rel="noopener"><span style="font-weight: 400;">almond orchard </span></a><span style="font-weight: 400;">about 30 miles northwest of Bakersfield.</span></p>
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