California’s bullet train could have a new end point: Brokeville, USA.
The state’s beleaguered high-speed rail line is once again careening toward a financial cliff, as a new report — delivered last month to Gov. Gavin Newsom and legislators — says the project could run out of cash by the end of next year.
Gov. Gavin Newsom has been bullish on California’s bullet train despite repeated delays and ballooning costs. Anadolu via Getty Images
An artist’s rendition shows a high-speed train passing through the South Bay in California. Reuters
The Office of the Inspector General warned that the California High-Speed Rail Authority’s funds could dry up as soon as December 2027 unless it secures financing — and the authority would need to borrow as much as $9.5 billion over five years just to keep construction on schedule.
Inspector General Benjamin Belnap’s report noted that high-speed rail officials have “obscured basic facts about the project, hindering lawmakers’ ability to provide effective oversight of the project.”
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State Sen. Tony Strickland has been one of the most vocal critics of the High-Speed Rail project. MediaNews Group via Getty Images
State Sen. Tony Strickland (R-Huntington Beach), who previously called the bullet train “the most wasteful government project in probably world history,” said on Tuesday that the warning of empty coffers by the end of 2027 was “no surprise.”
“During the informational hearing this spring, both the nonpartisan [Legislative Analyst’s Office] and the Inspector General were unable to identify a reliable funding source for high-speed rail,” Strickland told The Post.
“The LAO described the public-private partnership plan as ‘risky,’ highlighting the uncertainty of relying on uncommitted funding and the reality that public-private partnerships only work when viable funding sources exist.”
Strickland added, “It’s truly time to pull the plug on this wasteful government project.”
A virtual rendering of the California High-Speed Rail project. California High-Speed Rail Authority
Newsom has committed state funds to the bullet train beyond his time as governor. Anadolu via Getty Images
The inspector general found that some of the authority’s recent savings are largely the result of shrinking what it plans to build — rather than finding cheaper ways to build it.
The authority’s preferred plan cuts the Merced-to-Bakersfield route from 171 miles to 162 miles, moving the planned Merced station out of downtown and temporarily stopping trains north of downtown Bakersfield.
An artist’s rendition shows a high-speed train passing through Altamont. Reuters
“Ultimately, the major cost savings observed in the Merced and Bakersfield extensions are not due to increased efficiency — which we define as delivering equivalent scope for less cost — but are instead the result of planning to build less,” the report says.
The inspector general found financing could add between $3.6 billion and $6.6 billion in interest costs to the Merced-to-Bakersfield segment, expenses that are not included in the authority’s current $35.7 billion estimate.
An artist’s rendition shows a high-speed train in a station in the Bay Area. Reuters
Costs for the original vision of the bullet train from San Francisco to Los Angeles have fluctuated from $126 billion to $231 billion, according to KCRA 3, which was first to report on the inspector general’s findings.
Even the authority’s current timeline appears to be overly optimistic.
The inspector general’s risk analysis puts completion of the Merced-to-Bakersfield segment as late as September 2034 — and officials warned even that deadline may not leave enough breathing room because the authority is relying on “overly optimistic assumptions.”
The High-Speed Rail Authority issued a statement to The Post saying that it “values constructive oversight and partnership that helps strengthen the program.”
A full-scale mock-up of a high-speed train is displayed at the Capitol in Sacramento. AP
“The Authority has fundamentally reoriented the high-speed rail project by moving into its tracklaying phase, while making real, measurable progress through strong collaboration with the private sector and our partners across the state,” officials said.
The governor’s office, which recently installed Newsom allies to the authority board to get the latest plan sent to the Legislature, declined a request for comment Tuesday, instead referring questions to the California State Transportation Agency.
Newsom himself was traveling back to California on Tuesday after from an extended jaunt to Michigan.
Assemblymember Alexandra Macedo was named GOP minority leader earlier this month. AP
Macedo slammed Newsom’s handling of High-Speed Rail. USA TODAY Network via Reuters Connect
Assemblymember Alexandra Macedo, the new GOP minority leader, slammed the new financial findings and pinned the bullet train’s blues on the governor.
“High-Speed Rail’s own Inspector General says the project could run out of money as soon as 2027,” Macedo said. “Gavin Newsom wants to run America? The guy can’t even run a railroad.”
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