The Los Angeles Times did an analysis of the state rail authority's financial records and made a not so shocking discovery.
The California high-speed rail project will most likely run out of money before it can complete Gov. Newsom's plan to build a segment operating between Bakersfield and Merced.
Say it isn't so? You mean the project that is already billions and billions over budget and at least five years behind schedule will soon run out of money?
According to Newsom, the state does have the "capacity" to build the 171-mile route through the central valley. However, an investigation by the inspector general for the U.S. Department of Transportation could pose some problems as they look into poorly controlled or improper spending by the rail authority.
If no new problems become present during the construction of the Bakersfield-Merced line, the construction cost will run about $16 billion to $18 billion for structures, electrical lines, train stations, signals, a heavy maintenance facility and bullet trains but the rail authority can only count on roughly $15.1 billion through 2023, the LA Times reports.
A rail authority spokeswoman said the agency believes it has enough money to "complete the operating system and will publish a project update in early May that will provide details on the plan."
Read more at the Los Angeles Times.
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