Posted by Edward Ring at 8:49 pm on Nov 24, 2015 Comments Off on Why Aren’t Unions Fighting California’s Bullet Train Boondoggle?
Back in 2008, voters in California approved Prop. 1, a statewide
initiative to spend, “$9 billion for building a new high-speed
railroad between San Francisco and Los Angeles.”
Total cost, $9.5 billion. Remember that?
Quoting further from the original initiative’s ballot
language:
“Bond Costs. The costs of these bonds would dependon
interest rates in effect at the time they are sold andthe
time period over which they are repaid. The statewould make
principal and interest payments from thestate’s General Fund
over a period of about 30 years.If the bonds are sold at an
average interest rate of 5percent, the cost would be about
$19.4 billion to payoff both principal ($9.95 billion) and
interest ($9.5billion). The average repayment for principal
andinterest would be about $647 million per
year.Operating Costs. When constructed, the
high-speedrail system will incur unknown ongoing
maintenanceand operation costs, probably in excess of $1
billion ayear. Depending on the level of ridership, these
costswould be at least partially offset by revenue from
farespaid by passengers.” (ref.UC Hastings
Scholarship… Read More