State governors are making tough decisions to cut non-critical spending – both in their own budgets, and in their respective state’s take from federal coffers. Regrettably, the federal government doesn’t give up easily on its plans for spending. Even though federal “stimulus” funds for high-speed rail construction have been turned down by several states, that money won’t get saved. Instead, Washington just looked until it found a state to take it…and all of the strings and future costs attached.
The San Francisco Chronicle reported on numerous states that chose to put the brakes on rail projects.
Ohio governor-elect Kasich said he would say no to $385 million for a train connecting Cleveland, Columbus and Cincinnati. Wisconsin governor-elect Walker said he would reject $810 million for a train from Madison to Milwaukee.
Walker argued that Wisconsin, facing a $2.5 billion budget deficit next year, doesn’t need to be saddled with the $7.5 million annual cost to operate the train.
Kasich asked that, if the U.S. Department of Transportation refused the request, Ohio’s $385 million go to the U.S. Treasury to reduce the federal deficit.
Instead, on Dec. 9, before either governor-elect assumed office, U.S. Transportation Secretary Ray LaHood announced that his department would redirect the $1.2 billion that would have gone to Wisconsin and Ohio to 14 other states.
So, which state cracked and took the $$$? Regrettably, it was California.
California stands to gain up to $624 million of other states’ forfeited stimulus funds – on top of the more than $4.3 billion already earmarked for the planned high-speed rail project that would link San Francisco to Los Angeles/Anaheim and eventually reach Sacramento and San Diego. But as noted in the article above, the “free” money comes with significant future costs attached.
In November, the California High-Speed Rail Authority approved the first segment of the project. It will start in the middle of nowhere (Borden) and go to nowhere (Corcoran). State Sen. Alan Lowenthal, chairman of the Senate Transportation Committee, said he fears the segment could turn into an “orphan” line, unusable by bullet trains.
