July 7, 2012
-- by Dave Johnson
Why so much misinformation? Because oil companies are against it.
California approved a high-speed rail project. The Federal government pays most of it, so California comes out ahead. The construction companies and workers will pay state taxes. They will also buy things in the state, so the state will get sales and income taxes from that as well. Also the workers won't be collecting unemployment, etc. So this doesn't cost the state, it makes money for the state, cutting our tax needs here and helping all of us.
The Federal government comes out ahead, too, because this improves the overall economy, boosting our international competitiveness, helping us all, boosting overall tax revenue, etc.
But beyond immediate state and federal tax revenue projects like this benefit our larger economy so much. It is called investment in infrastructure, and it pays off.
Thy explaining any of that to a Republican, entirely in the service of the big oil companies...
Several noted the incongruity of embarking on such a major project weeks after passing a budget that included deep cuts in spending on schools and other programs.
“This is a colossal fiscal train wreck for California,” said Senator Tony Strickland, a Republican. “Members, this bill is spending money we simply don’t have here in California.”
Mr. Brown heralded the vote, saying, “The Legislature took bold action today that gets Californians back to work and puts California out in front once again.”
Posted by Dave Johnson at July 7, 2012 5:31 PM
Dave, your $$ figures are dramatically off. The Feds will pay only $3+B or roughly 5% of the $68B total cost. In fact, the initial segment will cost $9B for just 130 miles of track. This very first component of that 130 mile segment will soak up $6B--and that pays for track only. It does not include rolling stock, electrification, signals or stations. There is no additional funding currently available for the rest of the project beyond the first $9B. Finally, the debt service, assuming a 6% interest rate will be $300M+/year--even if the project is never finished.
Am I missing something?
State: 10 billion, Federal 41.9 billion, Private investment 13.1 billion, other 5.2 billion.
Dave, the chart with those $$ shows that they are still needed--not that that are actually available. It's the huge gray area at the top of the chart. Yes, the idea was that those funds would come from those sources. But, there is no plan in plan to get them.
Also, you'll note that the first service won't run until 2022--and will go only from Merced to the LA Basin. Who on earth will ride that segment?
Posted by: Newtbarrett at July 8, 2012 9:31 AM
Dave, I should add that I'm a huge fan of electric/hybrid cars that will reduce our oil dependence over time.
Posted by: Newtbarrett at July 8, 2012 9:34 AM
Dave, You fall into the "Trap" on this one. "The Oil Companies" are the Boogie Man? I voted for Obama, I'm a DEDICATED SOUTHERN DEMOCRAT..
WHILE JERRY BROWN SQUEALS ABOUT the High Speed Rail, MY SENIOR SERVICES ARE CUT TO HELL! I WAITED 62 YEARS TO RETIRE, NOW I GET ZILCH!
Do You OTHER democrats realise CALIFORNIA IS TAKING AWAY FROM US OLD SCHOOL DEMOCRATS, FAITHFUL DEMOCRATS, EVERYTHING WE WAITED FOR?
WHAT DAMN GOOD IS A HIGH SPEED RAIL?
Post a comment
Thanks for signing in, . Now you can comment. (sign out)(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)