You could see this train wreck coming from miles away. From Tyler Durden at zerohedge.com:
California’s bullet train will be coming in over budget and behind schedule, after its estimated cost was revised from $64 billion to $77 billion – a 20% increase, and an estimated completion date of 2033, four years later than originally projected. The new estimates, contained in a 114-page business plan, was issued in draft form on Friday by the rail authority ahead of public hearings and a formal legislative review in approximately two months.
The rail authority previously argued that it had just enough money to build the grade-separated tracks for its route between San Francisco and Los Angeles at speeds of up to 220 mph.
The new estimates will force California’s leadership to double down on its political and financial commitments if it wants to see the system completed, against a backdrop of rising costs, years of delays, strident litigation and backlashes in communities where homes, businesses, farms and environmental preserves will have to give up land to the rail’s right-of-way. –LA Times
The revised plan will leave California legislators scrambling to grapple with higher costs amid an uncertain economic future in the state with the nation’s worst poverty rate and already strained balance sheet.
While the endgame will be to connect Northern and Southern California, from upper San Francisco to San Diego – the new plan is to focus on the track between San Francisco and the Central Valley – the primarily agricultural and less populated region of California, which is set to be completed in 2029.
One of the current hurdles is how to content with traveling through California’s mountainous regions – which designers are still trying to figure out.
The $77 billion cost, a 20 per cent increase, is a baseline estimate, but Kelly also included high and low ranges in the plan based on potential risks.