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|Subject: California High-Speed Rail Project||Date: 12/6/2012 12:46 PM|
|Author: MadCapitalist||Number: 658552 of 775770|
Preliminary Assessment of California's Cost Estimates and Other Challenges
"The California high-speed rail project faces many challenges. Chief among these is obtaining project funding beyond the first 130-mile construction segment. While the Authority has secured $11.5 billion from federal and state sources, it needs almost $57 billion more. Moreover, the HSIPR grant program has not received federal funding for the last 2 fiscal years, and future federal funding is uncertain. The Authority is also challenged to improve its ridership and revenue forecasts. Factors, such as limited data and information, make developing such forecasts difficult. Finally, the environmental review process and acquisition of necessary rights-of-way for construction could increase the risk of the project's falling behind schedule and increasing costs.
Why GAO Did This Study
The California high-speed rail project is the single largest recipient of federal funding from the Federal Railroad Administration's (FRA) High Speed Intercity Passenger Rail (HSIPR) grant program. The 520-mile project (see map) would link San Francisco to Los Angeles at an estimated cost of $68.4 billion. Thus far, FRA has awarded $3.5 billion to the California project. The Authority has to continue to rely on significant public-sector funding, in addition to private funding, through the project's anticipated completion date in 2028. This testimony is based primarily on GAO's ongoing review of the California high-speed rail project and discusses GAO's preliminary assessment of (1) the reliability of the project's cost estimates developed by the Authority and (2) key challenges facing the project."
Only $68.4 billion? At that cost, they can't afford *not* to do it. LOL
What are the chances that this project will come in under the $68.4 billion cost estimate? I predict that it will end up closer to $136.8 billion (twice the estimate) than $68.4 billion.
Oh, by the way, the federal contribution to this monstrosity is supposed to be $42 billion, so dig deep, hayseeds.
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