Opposition Rises As Calif. High-speed Rail Begins
"By connecting Fresno, Bakersfield and the other cities of the Central Valley to Los Angeles and San Francisco ... it just creates more opportunities for people," he says. "It creates a whole different sort of economy that'll just raise the Central Valley."
Gov. Jerry Brown calls rail "cheaper than the alternative, and it's a hell of a lot better." The project also offers the 75-year-old Democrat a chance at a legacy. What is less certain is what the legacy will be, and whether high-speed rail will ever be what was once promised. Critics say the ridership projections are inflated and rely on low ticket prices that would require government subsidies, although the federal Government Accountability Office has called them reasonable.
The Obama administration promised $3.2 billion for the first phase as part of the federal stimulus package, but that is just a fraction of the money needed to complete the system, leaving many of the valley's 6.5 million residents to suspect California taxpayers will be on the hook for the rest. The state's independent analyst calls current funding plans "highly speculative."
Republicans in Congress have furiously fought to block any more federal funding as GOP governors in Ohio, Wisconsin and Florida have backed out of plans for high-speed rail in those states.Fukuda is among the residents who are suing to try to block California's rail line. He and his wife had planned to build their dream house on their Hanford property. At first he planned to build sound barriers, but then he says he lost faith in the planners. "I don't think it's a viable, well thought-out or ... financially feasible project for the state of California," he says. It is rare to find someone in Hanford, a town of 55,000 people south of Fresno, who is not opposed to the project. Many landowners have been in financial limbo for years as the authority weighs different paths for the train, leaving farmers wary of planting crops or investing in new equipment in case their land ends up being gobbled up.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts