CA High-Speed Rail Fail: $600 million spent, not a mile of track laid
**Posted by Phineas
Because The Future! Or something:
The latest accounting by the California High-Speed Rail Authority to state lawmakers indicates that the agency has spent almost $600 million on engineering and environmental consultants — all without turning a shovelful of dirt on construction.
In the twice-a-year report (PDF) sent to legislative leaders on Friday, the agency is sticking to its estimated price tag of $68.3 billion to build its San Francisco-to-Los Angeles bullet-train line. The agency earlier this year approved a $987 million contract with a team of contractors to design and build the first 29-mile stretch of the line from Madera through Fresno.
But while contractors Tutor Perini Corp., Zachry Construction and Parsons Corp. have been given a green light for engineering and other pre-construction activities, the authority has offered no estimate of when ground may be broken .
If the name “Tutor-Perini” rings a bell, you’re not just hearing things. Tutor-Perini’s principle owner is Richard Blum. Blum has been mentioned before in this blog, and there have been allegations in the past of cronyism in the winning of government contracts by companies he’s involved with. By sheer coincidence, Blum is also the husband of Senator Diane Feinstein.
But, back to the more than half-a-billion, this is money that has been spent before construction has even begun on the initial Fresno to Madera segment. The Fresno Bee article describes what we’ve gotten for our money, so far:
“The authority has made significant progress in its mission to plan, design, build and operate the nation’s first high-speed rail system as part of the statewide rail modernization program,” agency CEO Jeff Morales wrote in the report.
The report details a raft of administrative advances, including filling all of its executive management positions, developing a risk-management plan, issuing a report on greenhouse-gas emissions, and awarding the construction contracts for the Madera-Fresno stretch.
(I hope those executives got some nice chairs for that $600 million.)
There is still an environmental report –Yay! More consulting fees!– for the area around Chowchilla to be done, which is why this state version of a shovel-ready project hasn’t started. Already they’re two years behind schedule.
And the whole ball of wax (with attendant fees) has to be done for at least six other segments from San Francisco to Anaheim. Luckily, the High-Speed Rail Authority is allowed to spend up to $980 million on pre-construction “consulting contracts” through 2018. No way they’ll come asking for more public money (1). Nope. Nuh-uh.
I can’t wait to see what the costs come to once they actually start building this boondoggle.
Nice legacy ya got there, Governor.
(1) Funded by either public borrowing or higher taxes, of course.
(Crossposted at Public Secrets)