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State Panel Recommends Putting California High-Speed Rail Project On Hold

January 4, 2012 by  

State Panel Recommends Putting California High-Speed Rail Project On Hold

A state-appointed panel said Tuesday that California’s plan to build a high-speed rail system in the state is not financially feasible and needs to be placed on hold, The Associated Press reported.

According to the news outlet, the report from the California High-Speed Rail Peer Review Group noted that the state should not authorize the necessary $2.7 billion in bonds that would be used to build the initial section of the system.

The AP reported that in November, the California High-Speed Rail Authority approved a plan that requests $2.7 billion in state bonds to match the $3.5 billion that was granted by the Federal government. The funding would be used to build 130 miles of track between Chowchilla and Bakersfield.

The Los Angeles Times reported that Governor Jerry Brown has said he intends to ask the legislature this month to provide the funding, but the plan had been facing criticism even prior to the panel’s issuance of the report.

The panel cited a lack of clarity in the business plan that was unveiled in November as one of the reasons for their findings, according to the newspaper.

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