Bullet train bad news: Funding fails–GREAT News for Taxpayers

Great news for the taxpayers of California.  Bad news for the vendors that signed billion agreements with a government agency that they knew had NO money to pay their bills.  N ow the $150 million Guv Brown was going to give the largest scam in the history of California, the High Speed Rail Authority, , is only going to get about $2.5 million—not even enough to pau attorneys to steal private property for the scam.

“The quarterly auction conducted May 18 will provide just $10 million for state programs, including $2.5 million for the bullet train, the Los Angeles Times reported Thursday. The rail authority had been expecting about $150 million.

The reason is unclear, but state officials and outside experts pointed to several possible causes: less need for the credits, pending litigation that may overturn the entire system, and volatility spawned by speculators in a secondary trading market, according to the newspaper.”

What is cap and trade?  It is a tax on something that does not exist, except in the fried brains of government officials and special interests trying to make the cost of living in California the worlds highest—for the heck of it.  The better news is that this is the last source of money for the choo choo train to nowhere.  Will they now admit the scam and close the doors or continue stealing from the taxpayers to pay off the unions and contractors?

budget

Bullet train bad news: Funding fails

Posted by Debbie L. Sklar, MyNewsLA,  5/26/16

By California High-Speed Rail Authority [Public domain], via Wikimedia CommonsThere’s bad news for Gov. Jerry Brown and other backers of the proposed California bullet train – a major money source expected to provide about $150 million only brought in $2.5 million.

The latest auction in California’s cap-and-trade market for greenhouse gases fell sharply below expectations, with buyers purchasing just 2 percent of the carbon credits whose sale funds some state programs — including the proposed high-speed bullet train intended to run from Anaheim to San Francisco.

The quarterly auction conducted May 18 will provide just $10 million for state programs, including $2.5 million for the bullet train, the Los Angeles Times reported Thursday. The rail authority had been expecting about $150 million.

The reason is unclear, but state officials and outside experts pointed to several possible causes: less need for the credits, pending litigation that may overturn the entire system, and volatility spawned by speculators in a secondary trading market, according to the newspaper.

Whatever prompted the lack of buyers, the auction is a stark example of the uncertainty and risk of relying on actively traded carbon credits to build the bullet train, a problem highlighted in recent legislative testimony by the Legislative Analyst’s Office and a peer-review panel for the $64-billion high- speed rail.

The state rail authority is counting on the greenhouse gas fees to fulfill its legal obligation of matching about $3.5 billion in federal grants, The Times reported. The Federal Railroad Administration just last week modified one of its two grants to allow the state to spend all the federal money by next year but not match it with state funds until 2022.

The grant modification also allows the federal agency to extend a cash advance, needed by the rail authority to cover a cash-flow problem. It is unclear whether the auction shortfall will exacerbate that cash-flow problem or worse, undermine the state’s already-stretched financial plan, according to the newspaper.

If the auction results reflect a long-term shift in greenhouse gas revenue, it would raise new concerns about the viability of building the bullet train, The Times reported.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. The State just announced cancellation of $750 Million transportation items including repair of roads and freeways. The money is there, the problem is the intentional neglect of the streets for 30-40 years making a repair index enormous.

    But Brown and his Democrat henchmen in the Legislature will not take the (adequate) but not enough tax money and put it into the car and truck infrastructure.

    The public spoke for autos, businesses need the highways and streets for delivery.

    What doesn’t the anti car minority in Sacramento get?

  2. We should all hope this is the final nail in the HSR boondoggle. Maybe it could be a starting nail in the carbon tax boondoggle too. All the demorats in the state must be gnashing their teeth if these 2 boondoggles both fail at the same time. They might have to do something honest to earn money.

  3. askeptic says

    “… undermine the state’s already-stretched financial plan…” which is contra what the tax-payers/voters had been promised when HSR was passed by an Initiative.
    A Cascade of Lies…..from government, naturally.

    • THE CAPTIVE says

      These lib-LEFT -PROgressives are just following the GHO leads in DC. They are low-scumb-bags and manage to drive even more businesses from a once prosperous state. Look what Jerry -moon beam – Brown did to the schools. He got lots of cash from the islam 0 BHO to install Nazi-islam COMMON CORE –WHICH IS ALL CORN-FROM THE nuts of DC. It is sickening and a total failure.

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