Have you noticed that when you enter a bakery they often have small samples for you to taste. They surely offer free food samples at your neighborhood Costco.
That’s called Marketing 101.
So when we are drowning in red ink and govenor elect Jerry Brown finds himself inheriting a deeper budget hole than earlier projected, our two US Senators continue to press ahead for federal earmarks that will not help our status.
While we have received a few billion dollars to jump start a high speed rail system in California, a system that voters in Orange, San Diego and Riverside County all opposed (Nov 2008 Prop 1A), where are we going to get the balance of the $85 billion dollars to complete the 800 mile system?
This is to be a public/private venture. That said, show us the financial commitment for this voter approved dream before commencing this “shovel ready” project.
Just as the federal government spends a huge chunk of our annual revenue for debt service the state is in the same boat. Think about the $9 billion we have already committed. One major difference between Sacramento and DC. We cannot print money.
Following is a letter confirming Barbara Boxer and Diane Feinstein’s charging ahead with no concern for how we will pay for this system whose ridership projections are bogus and forecasted ticket costs that are a moving target.
“November 16, 2010
The Honorable Ray LaHood
Secretary
U.S. Department of Transportation
1200 New Jersey Ave., SE
Washington, DC 20590
Dear Secretary LaHood:
It has come to our attention that several states plan to cancel their high-speed rail projects. We ask that you withdraw the Federal grants to these states and award the funds to states that have made a strong financial commitment to these very important infastructure projects.
California voters have committed over $9 billion in bonds to high-speed rail, putting our state in a unique position to advance this initiative quickly. Our state’s plan has widespread, bipartisan support because of the impressive potential for job growth, its impact on energy independence and its transformational role in how Californians move throughout the state. No other state is as ready, as able, or as determined to develop a high-speed rail system in the near future.
California stands ready to be a pioneering partner with the U.S. Department of Transportation. Awarding our state’s plan with these funds would have the greatest and most immediate impact in advancing the kind of high-speed rail system envisioned by both California and the Obama Administration.
Thank you for considering this request. We look forward to working with you on this matter.
Sincerely,
Dianne Feinstein
United States Senator
Barbara Boxer
United States Senator”
I want a High speed rail line……….i also want the Red line back…..
I hate the freeways…..
I want to be like Europe…….it’s nice there.
Possible good news for California’s High Speed Rail:
Wisconsin’s and Ohio’s new wingnut governors are threatening to reject hundreds of millions in federal funds for THEIR High-Speed Rail projects… and so now our two lovely Senators DiFi and B-Box are formally requesting those hundreds of millions be sent to US instead! And now Arnold has joined them.
http://calitics.com/diary/12855/feinstein-and-boxer-redirect-hsr-money-to-california
“This is an excellent move by California’s two Senators. The people of California have twice now shown their support for high speed rail, both with the approval of Prop 1A in November 2008 and their rejection of anti-HSR candidate Meg Whitman in the November 2010 election. Recent polling from across California and on the Peninsula shows HSR is still widely popular.
“Californians understand that high speed rail is necessary to the state’s economic recovery – we want the jobs it will bring. Californians understand that high speed rail is necessary to improve our transportation system – we want the fast, reliable, convenient travel options it will bring. Californians understand that high speed rail is necessary to improve our environment and deliver energy independence – we want to slow global warming and reduce carbon emissions by using high speed rail.
“We also want to see a broader national HSR system built. We need to improve passenger rail across the country, and that includes states like Wisconsin and Ohio. It’s worse than shameful – it is tragic – if their right-wing governors want to shackle their states to driving and risk their economic futures through dependence on oil. But if they do succeed in rejecting the money, it ought to be redirected to a state where the HSR plans are sufficiently advanced where we can put it to immediate use – and that’s here in California.”
Oh, whoops – just read Larry’s story! So my first paragraph’s redundant. But Arnold has sent a similar letter to DC.
Brother Vern.
Perhaps our readers should check out our state budget to see how much money we currently set aside for debt service. That is funding that could be spent on education as our kids rank so high nationally, NOT.
There is no free lunch.
We should also read the legislation related to the HSR where it says that there shall not be a taxpayer subsidy.
Specifically I refer to AB 3034 [and SB 1856] as follows:
Provisions of the bill: AB 3034 updates and expands upon provisions of the bond proposal enacted in the original 2002 legislation and establishes additional fiscal controls on the expenditure of state bond funds to ensure that they are directed to construction activities in the most cost effective and efficient way. Specifically, the bill does the following:
States the Legislatures intent that construction of the HST system be consistent with the High-Speed Trains Authoritys more recent November 2005 certified environmental impact report rather than the Authoritys June 2000 Final Business Plan.
Ensures that the $9 billion in bond proceeds are available and are to be used for expenditure for planning and eligible capital costs on the systems entire 800 mile route. Also extends this system wide availability to federal and other revenues, consistent with federal and other fund source conditions.
Places a limit on the use of bond funds for preconstruction activities in order to maximize the amount of funds available for HST system construction, by limiting to 10% or less the amount that can be used for environmental studies, planning and engineering activities.
Requires that in selecting each specific segment for construction and prior to awarding a construction contract, the Authority must have a detailed funding plan identifying the full cost of constructing the segment and the sources of all revenues needed to complete the segments construction. Provides also that in selecting each segment for construction, the Authority must a) give priority to those segments requiring the smallest amount of bond funds as a percentage of the total construction cost, b) consider the utility of that segment for other passenger rail services, and c) ensure that any other passenger services provided on that segment will not result in operating or maintenance costs to the Authority.
Ensures that complementary rail capital improvements funded from the $950 million in bond funds allocated to intercity, commuter and urban rail systems shall provide direct connectivity and benefits to the HST system and its facilities or be part of the construction of the system.
Requires that net operating revenues, above and beyond operating, maintenance and construction completion costs of the HST system, must be deposited in the states General Fund. Revises and updates findings of the Legislature to reference the need for high-speed trains to accommodate Californias economic and population growth, and offset increasing traffic congestion, air pollution and greenhouse gas emissions and loss of prime land. Also references the low cost of the train system as compared to highway and air travel alternatives and states the need to quickly construct the train in a manner that maximizes benefits consistent with available revenues.
Takes effect immediately to make the changes operative in time for the November 4, 2008 vote on the bond act.
Makes conforming and related technical and clarifying changes.
Oh gericault, dontcha know you can’t mention Europe? It makes you look so, so, European. Eeewwww!!
Vive la France……..Vive le Republique…C’est la qui!!!
Geri, if you like France so much i recommend a a permanent trip. I doubt they’ll give you life-time health care but I’m sure they’ll sell you a ticket on the TGV.
Au revoir.
Nah, I think me and geri will stay right here, and keep working to make California more like France. Our wine’s good enough, and we’re the same size economy!
Vive le Republique? Oh really?
The proposed state of CA 2010-11 General Fund Expenditures for debt service is 6.221.7 billion dollars. That almost equals the state’s expenditures for higher education which is reported at 6.693 billion. Take your pick.
Let me also point out that we have yet to learn of the debt service for all of the approved Bond Measures that to date have not been issued.
We surely have heard that the national debt is around $13.7 trillion. What receives less attention is the annual debt service for these loans or in 2009 totalling $383 billion or 18.2% of our national income.
Numbers. For 2009 the debt service was $383,071,065,815. Not exactly chump change.
Fasten your HSR seat belt.