GAO: U.S. HSR funding still an uncertainty
Written by William C. Vantuono, Editor-in-Chief
A U.S. high speed rail program relying in part on state funding contributions is a problematic proposal at best, according to a report issued by the Government Accountability Office. In fact, state budget difficulties could cause delays in advancing those projects already bankrolled with startup stimulus funds from the federal government under the American Recovery and Reinvestment Act of 2009 (ARRA).
GAO, stating what some in the rail industry consider obvious, observes that building a U.S. HSR network will require funding “far beyond the funds provided by the ARRA in a time of continuing federal and state deficits. The Obama Administration has acknowledged that the $8 billion funding package was only a “down payment” toward such a network.
GAO said, “Rail industry stakeholders are optimistic that they can meet increased public investment in intercity passenger rail; however,they are looking for (1) federal leadership in setting safety standards for high speed rail and in promoting interstate cooperation for service across state lines, among other things, and (2) stable funding to create a structure for developing a passenger rail marketplace.”
“Additionally, stakeholders said that a stable federal funding stream would encourage [private] firms to enter and invest in the intercity passenger rail marketplace,” GAO said, noting federal funding’s potential influence on the railroad supply industry.
“However, even with strong federal leadership and funding, it could take several years to provide the necessary infrastructure, such as for building new passenger railcars, potentially making it difficult to spend some Recovery Act high speed rail funds by 2017, as required by law,” GAO said.
