Benjamin Belnap’s report revealed the project is again running out of money. Missing details in the project’s 2026 business plan, and concluded that the project will again be out of money by next year.
The state has already spent $18 billion, but it will need at least another $ 18 billion to finish the first segment. It could take roughly $200 billion more actually to complete the original San Francisco-to-Los Angeles line.
Even with billions more, the current segment will not be completed until 2034.
Voters approved a $9.95 billion bond issue in 2008 under Newsom’s predecessor after absurdly low cost estimates. Newsom has been a champion of the project. Influential figures and companies stood to make a fortune, and the key was to secure a “buy-in” worth billions, so that it would become increasingly difficult to abandon the project as overruns and delays sent costs soaring.
Now the official estimate of future ridership has dropped by 25%, and it demands billions more to complete a project delayed by decades. Remember that this entire project was meant to create a rail line of only 171 miles.
One would think that the California voters would be marching to the capital with pitchforks and torches over such breathtaking incompetence and waste. However, they appear to have been conditioned to accept the lowest level of performance from their public officials.
The response of Democratic leaders is crushingly predictable: they are pledging to seek a federal bailout to cover their own incompetence. The Democratic nominee for governor, Xavier Becerra, is promising to fight to get back federal funds that were cut off by the Trump Administration. While promising to seriously review any problems in the project (as if they are not obvious), no one has been held accountable for this financial train wreck. Instead, all Democrats can do is demand that citizens around the country help bail out their boondoogle.
Yet, the Inspector General is describing a failure of leadership where no one is making any real decisions:
“Exploration of specific financing mechanisms is a positive step, but because the Authority might run out of funding as soon as December 2027, and the financing strategy the Authority uses has the potential to significantly affect the amount of interest it will need to repay, the Authority and state lawmakers have little time for delay in deciding upon a strategy and implementing it.”
Belknap indicated that those in control are simply shrugging off the problem, noting that “[b]ecause the Authority has thus far not demonstrated a willingness to establish and reinforce a process that ensures accuracy and transparency in project reporting, we have directed our report recommendations to the Board.”
In the meantime, the state will continue to creep along with a project that is sucking billions into a project that has become a national disgrace. Beccera’s pledge to seek bailouts shows that the problem remains the political culture in California. There is little accountability left in a one-party state where companies and individuals have made fortunes off this debacle. The only people being taken for a ride are Californian citizens and it is not the ride that they bargained for.
Jonathan Turley is a law professor and the best-selling author of “Rage and the Republic: The Unfinished Story of the American Revolution.”