Governor Jerry Brown this morning signed the High-Speed Rail funding bill and will do so again this afternoon in San Francisco.
The bill, S.B. 1029, unlocks $4.7 billion in funding via the sale of state bonds approved by California voters 2008. The funding will go in part to modernizing Caltrain and other regional transportation systems, and will be matched by a $7.9 billion investment from federal and local dollars.
“This legislation will help put thousands of people in California back to work,” said Governor Brown in a statement Wednesday. “By improving regional transportation systems, we are investing in the future of our state and making California a better place to live and work.”
Brown signed the legislation at Union Station in Los Angeles, and will have another ceremonial signing at the site of the new Transbay Terminal in San Francisco Wednesday afternoon.
Both stations will serve as termini for the high-speed rail line.
The legislation authorizes $700 million in state funding for electrifying Caltrain by 2019, and will be matched with $2 billion in additional federal and local funding. This is on top of funding authorized for building a light rail connection in Southern California linking Metro transit to Union Station.
“I am very pleased the Governor has signed legislation authorizing the first leg of construction for California’s High Speed Rail Project,” said Speaker John A. Pérez. “This ambitious project will create thousands of jobs and generate billions of dollars for our state, and my colleagues and I have been very pleased to work with the Governor to keep this project moving forward.”
“California’s transit system cannot stagnate because the facts are unforgiving: 20 million additional residents by 2050,” said Senate pro Tem Darrell Steinberg. “You can pave farmlands with new roads and blackout skies with airplanes but the air we breathe will be no better than a tailpipe. This project brings an infusion of energy into rural areas of high unemployment and provides relief for urban traffic gridlock. Most importantly, it’s an investment in California’s future.”
The initial segment of high-speed rail will begin construction in 2013 and link Merced to the San Fernando Valley. The California High-Speed Rail Authority and the Governor’s office claim this will create 100,000 job-years of employment in five years, equivalent to 20,000 full-time jobs annually, but those number are disputed by watchdog groups, including Palo Alto’s Californians Advocating Responsible Rail Design.
SB 1029 also includes money for replacing train cars on BART and implementing Positive Train Control, an automated system for controlling trains designed to stop collisions.
The total investment in Northern California transportation projects unlocked by SB 1029 totals $3.6 billion, according to the Governor’s office. Southern California will get $2.8 billion, and the Central Valley will get $6 billion.
The legislation also ratchets up the reporting requirements on the High-Speed Rail Authority, a move designed to boost accountability, manage project risks, and keep construction on schedule and within budget.
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Money will go to existing transit systems and expansions over time. As a matter of fact some of the money in this Bill will go to other transit systems. This is a one time shot at something that might be the big economic stimulus that we badly need. But I will concede that it is a bit of a gamble. The die has been cast by the governor's signature so we should make the best of it and not try to sabotage it or we really will be wasting money.
As for fiscal responsibility, it doesn't mean stop spending on everything if you are in the red. Fiscal responsibility means spend wisely and collect tax revenues fairly. If you are in the red then you must collect taxes at a faster rate than you spend. Collecting taxes fairly doesn't means that the net tax rates for the very rich should be lower than everyone else as is generally the case today. It means that those who can most afford it and are least impacted from it should pay more of their share of taxes. This will go a long way towards balancing our budget. The middle class has been stuck with the majority of the tab far too long. I consider anyone making more than $500,000 per year rich. California has a lot of not just rich but insanely rich people. We must start balancing our attention upon increasing taxes for the rich just as we have been on cutting the budget. But you don’t hear much about raising taxes for the rich. The very rich want us to focus our attention solely on cutting the budget so they can get away scot-free, and we the middle class allow them the power to detract our attention from them!
http://www.msnbc.msn.com/id/48304937/ns/local_news-bakersfield_ca/t/senator-wants-delay-high-speed-rail-project/#.UBCbomt5mK0
http://sanfrancisco-on.us/2012/07/22/bay-area-faces-new-high-speed-rail-costs/ note the date of article is after Brown signed the deal.
This should not be a surprise to anyone because it is done so routinely. As I said earlier money will come from many sources. It has to come from somewhere. It cannot all come from the State.
The best idea would be to not fund it at all. It will still cost $100B+ before it is finished (I'm sticking to my $125B projection and another $125B for operations through 2100). The State should not be in the rail business. The money is coming from "Fed, State, Bonds, Etc." No, the money comes from you and me. Our legislators need to fix the budget this year, next year, etc. Then they can set up a rainy day fund (be conservative and have an account with 6 months worth of budget in it - about $65B ?). Come back with the High Speed Rail after you get that taken care of. I agree with Gary's analogy. Let's make it simple; when you can't pay the bills you have, you don't borrow more.
http://www.mercurynews.com/california-high-speed-rail/ci_21188241/bay-area-sin-city-las-vegas-bullet-train