New cost estimate for high-speed rail puts California bullet train $100 billion in the red

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New cost estimate for high-speed rail puts California bullet train $100 billion in the red
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The latest report from the California High-Speed Rail Authority projects costs for the initial segment at $35 billion, which exceeds secured funding by $10 billion.

And possibly more worrisome is a cut to the projected future ridership by 25%, owing to the reality that the COVID-19 pandemic has fundamentally reduced the use of public transportation and California’s expected. An important justification for the bullet train since its inception was an expectation that population growth would necessitate improved passenger rail. The report nonetheless asserts the system would perform comparable to Amtrak’s Northeast Corridor passenger loads.

Construction has been held up because of problems relocating utilities, such as underground sewers, water lines and gas pipes. Currently, about half of the 2,800 projects to relocate underground utilities have not been completed, according to a separate status report issued by the rail board’s finance and audit committee. Two dozen major structures, such as viaducts and bridges, have not even started construction.

“It is on life support now,” said Sen. Brian Jones, a San Diego County Republican and Senate minority leader. “The governor has not been able to deliver on any of his promises.” Kelly believes there is a reasonable path forward. The report, issued on March 1, sets a goal for the rail authority to obtain $8 billion in federal grants under the Bipartisan Instructure Law enacted by Congress last year.

“I think it’s reasonable and a prudent ask,” Kelly said. The state will know by early next year whether it will get the lifeline. Without it, the funding shortfall will be breathtaking. Before then, the Senate and Assembly will hold hearings in the next month.“It is certainly a significant funding gap,” said Helen Kerstein, who covers the rail project at the nonpartisan Legislative Analyst’s Office.

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