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Re: Dan Walters: Brown has a way out of HSR mess
Author: jimB
Date: 08-06-2011 - 10:26
If they are somehow able to raise the money to build it, more likely 80 to 100 billion, not 43 billion (big infrastructure projects usually double in cost, and the per mile estimate on this is way below the usual cost), who is responsible for paying off any bonds issued? If the state of CA is, this is a huge risk.
If the revenue it generates can't cover the operating expenses plus debt service, which is almost a certainty, will the taxpayers be forced to jump in to keep it running for many billions a year.
These projects usually have underestimated costs and over estimated ridership and revenue. I'm also not convinced there is that big a market for it. Business travelers will still mostly fly, and leisure travelers will drive so they have a car when they get where they are going.
Jim
If the revenue it generates can't cover the operating expenses plus debt service, which is almost a certainty, will the taxpayers be forced to jump in to keep it running for many billions a year.
These projects usually have underestimated costs and over estimated ridership and revenue. I'm also not convinced there is that big a market for it. Business travelers will still mostly fly, and leisure travelers will drive so they have a car when they get where they are going.
Jim
