An initial analysis by the state Legislative Analyst's Office ofthe California High-Speed Rail Authority's draft business plancalls its potential funding sources "speculative," and says it isunclear if aspects of the plan satisfy the legal requirements ofProposition 1A, which voters approved in 2008 to build theproject.
The LAO also raised concerns about the lack of details about theinitial 130-mile-long construction segment that would run throughKings County and said the plan, released Nov. 1, contains aneconomic impact analysis that "potentially portrays the projectmore favorably than it may warrant."
The LAO, a nonpartisan office that provides fiscal and policyinformation and advice to the state Legislature, prepared aninitial report for a hearing of the Assembly Budget Subcommitteehosted Tuesday in Palo Alto by Assemblyman Rich Gordon, D-MenloPark. Farra Bracht, managing principal analyst for the LAO, alsoraised similar issues at Tuesday's hearing.
The eight-page report, entitled "Strategy for Reviewing the Draft2012 High-Speed Rail Authority Business Plan," noted thatProposition 1A requires proceeds from bond sales authorized by themeasure to be spent only on a system that meets certain conditions,including the submission of a detailed funding plan for "an entireusable segment" to the state Legislature.
Another concern is the Authority's comparison of the almost $99billion revised cost of building the system to what it says will bea $170 billion price tag to instead build highways and airportswith same amount of capacity. The report notes "the comparison isproblematic because it is based on a theoretical maximum capacityof high-speed rail ... [which] ignores existing capacity, futuredemands for regional travel throughout the state and the potentialbenefits from using tools to manage congestion."
The LAO also repeated previous assertions that the Authority has"inadequate staff and structure for managing this project."
"The Authority welcomes the preliminary comments from the LAO, andall comments, on the draft business plan," said Authorityspokeswoman Rachel Wall. "We will be meeting with the LAO shortlyto discuss their feedback and will update the draft planaccordingly."
The LAO issued a blistering report last May on the project and saidfuture funding was uncertain, a situation that has not improved.Tuesday's report noted the business plan said it would cost between$24.6 billion and $31.6 billion for the first usable segment ofabout 300 miles that would connect the Valley to either SouthernCalifornia or the Bay Area. But only about $6 billion in state andfederal funds are currently committed to the project.
The LAO is in the process of requesting further information fromthe Authority, said Brian Weatherford, an LAO fiscal and policyanalyst. He said the agency will continue to issue interim reportsfor upcoming hearings before the Assembly and Senate transportationcommittees and hopes to issue its full report on the business planby the end of the year.
The reporter can be reached at 583-2423orkkennedy@hanfordsentinel.com.
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