California authority releases new business plan
Written by William C. Vantuono, Editor-in-ChiefThe California High-Speed Rail Authority Tuesday released a new business plan that it says lays the foundation for an economically viable high speed rail system that will create 100,000 jobs in the next five years, and is expected to generate another 1 million jobs moving forward.
But the business plan for California’s HSR system now is estimated to cost $98.5 billion tolink the Bay Area and Anaheim, adjusted for future inflation anticipated during the next 20 years.
That’s more than the original $44 billion price. The plan, however, also states the system would be profitable even at the lowest ridership estimates and wouldn’t require public operating assistance. <br><br>
CHSRA’s new business plan describes a phased approach to construction that will allow the it to adapt to changing financial conditions as it moves forward, segment by segment. The plan also updates cost estimates, ridership figures and funding expectations to reflect current economic realities.
“We have carefully constructed a business plan that is mindful of the economic and budgetary constraints facing both the state and the nation,” said Authority Board Chairman Thomas J. Umberg. “It will deliver to California and Californians a cost-effective, efficient, and sensible alternative to more highways and increased airport congestion.”
Construction will begin next year with a 130-mile segment stretching from just north of Bakersfield to just south of Merced. The funding for this piece, which will serve as the backbone of the system, has already been identified through federal funds and the voter-approved Proposition 1A.
The new business plan is available here on the High-Speed Rail Authority’s website. The public will have 60 days to comment and help shape the final plan, which will be completed and provided to the state legislature in January.
