California is home to many wonderful things. From a temperate climate and some of the most picturesque land on earth to abundant farmland and some of the most productive people on earth, we are blessed in many ways.
Unfortunately, there is another side to California, a side that keeps coming up with, and implementing, some of the most economically destructive policies this side of Venezuela. A perfect case in point is the $68 billion High-Speed Rail project that intends to connect Los Angeles to San Francisco.
From its inception, High-Speed Rail was sold to Californians dishonestly to get voters to approve Prop. 1A, a $10 billion bond measure. Prop. 1A proponents told voters the project would cost $33 billion, but now we are told it will be $68 billion.
We were told it would have a certain level of ridership, but a University of California Berkeley Institute of Transportation Studies report says the data used by the California High-Speed Rail Authority (CHSRA) was so unreliable that it is impossible to predict whether the project will be successful or lead to "severe revenue shortfalls." Gov. Jerry Brown has all but admitted this will be the case when he recently stated the project will require subsidies to survive, something illegal under Prop. 1A.
In January 2012, the Peer Review Group commissioned under Prop. 1A to analyze High-Speed Rail for lawmakers, recommended that the Legislature refuse to authorize the state bonds because of a lack of “adequate funding,” “a definitive business model,” “appropriate management resources” and other problems.
That same month, the state auditor said the Authority’s revised business plan relied on uncertain funding sources and that the project’s "overall financial situation has become increasingly risky."
In November 2011, the nonpartisan Legislative Analyst’s Office published an analysis of the Authority’s November 2011 business plan that stated funding sources were "highly speculative." It stated that Congress had approved no funding for high-speed rail projects for 2012 or beyond and that the segment the Authority wants to begin building is not a "usable segment," also violating Prop.1A.
The project is facing multiple lawsuits, not the least of which is one that points out the many ways Prop 1A is being violated.
Understanding all this, why would Democrats in California still doggedly move forward with this project? Unions, of course, and construction unions to be specific.
While it is not hard to figure out why trade unions support this project -- jobs for union members -- it goes far beyond this and into the troubled world of insolvent union pensions, and billions of dollars for union/Democratic political coffers.
The High-Speed Rail project also allows its supporters to focus on some distant utopian dream -- that takes longer and costs more to get you to your destination than a flight on Southwest Airlines -- thereby allowing them to avoid the dreary reality that is our myriad present-day social, educational and economic challenges.
The payoffs to trade unions have been incredible. Bob Balgenorth served as the president of the High-Speed Rail Authority’s Board, which might not be interesting except he was also the head of the California Building and Construction Trades Council. To what ends? To make sure union members get all the work by way of a Project Labor Agreement. The Rail Authority has now been forced to admit that the project’s general contractor will be required to be sign such an agreement.
It is reasons like these that this project contributes to California’s image as an economic laughingstock throughout America; it would be funny if so much money weren’t at stake.
Eric Christen is executive director of the Coalition for Fair Employment in Construction and sponsor of www.californiahighspeedrailscam.com
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