Governor Scott is at it again - working to keep the promises he made on the campaign trail (and perturbing liberals while doing so). Florida has once again rejected federal funds for the high speed rail thanks to the efforts of Governor Scott, the State chapters of the Tea Party, and concerned conservative voters.

High speed rail was touted as a necessary project for a struggling economy and the ultra-high unemployment that we suffer in the great State of Florida. Countless long-term jobs and stimulated commerce were the two major talking points, and it is easy to sway public opinion when the proposed project is portrayed in this manner. As with any argument, there are two sides to the story, and the other side did not get adequate representation in the media outlets. And the beat goes on....

Important questions need to be answered to fully understand the pros and cons of this debate. Who would bear the cost of operation and maintenance for the railway once the project is completed? What does it cost to maintain a multi BILLION dollar project? What about the possibility of large volumes of empty seats, as with the Jacksonville Automated Skyway Express?

Operational costs and maintenance would obviously be funded by tax receipts since this is a public sector railway. The feds only fund a portion of the construction phase, leaving the remaining construction costs, operations, and upkeep to be the sole responsibility of Florida taxpayers. The long-term expense alone could easily outweigh the benefit of the new jobs created.

How much would it cost to maintain the railway? No one will ever know the actual numbers, but think of it this way. Compare the expense of an oil change for a Ford Ranger vs. a Ferrari Testarossa. The pickup can be serviced for less than $50 at the dealer, but an oil change for a Ferrari can cost as much as $1000 due to its proprietary nature! If the price for this specialized railway can reach $100 million per mile in difficult terrain, how badly will this burden our strained State budget to keep the system functional? Thank God Florida will not be burdened with these ongoing expenses.

The most important concern is the estimated number of riders, which cannot be calculated with any degree of certainty. As a teen and young adult, I clearly remember the promises of increased commerce and economic benefits for Jacksonville if the city agreed to spend enormous amounts of tax revenue for the project, but it undoubtedly FAILS to do what was promised. Each time I visit downtown Jacksonville near the ASE, I am clearly reminded of the political spin by the overwhelming amount of empty seats on each and every car traveling the overhead rail. It seems as if the local politicians were in bed with the contractors who profited from the construction of the local monorail.


The government cannot do ANYTHING more efficiently than the private sector. Without the financial accountability that looms over private business owners and managers to remain profitable, the project could quickly hemorrhage and prove to be yet another financial disaster, like the Post Office or Amtrack, which are far from solvent! Another unprofitable venture will not offer a viable solution to any of the economic problems we face.

If there was any certainty to the feasibility of high-speed rail projects, the private sector would have begun to build these long ago. Until there is ample demand, the free market will not supply a good or service.

Thank you, Governor Scott, for rejecting the federal funding for this nonessential project. Spending less money on discretionary projects is the true answer to our fiscal problems, and the Governor seems to clearly understand this steadfast business principle. I hope that his focus remains undeterred for the remainder of his term. If so, he may be in the Governor's mansion for many years to come.

 

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Comment by Lonnie Smith on February 28, 2011 at 7:21am

Accumulated deficit and comprehensive income (loss) increased $1,340.7M – reflects net losses incurred over the last 12 months and other unrealized comprehensive losses relating to the current market value of short-term investments.


Above is from the Amtrak_1010monthy.pdf.

Use the search field in Adobe reader to find every instance of the word loss in the report. Then use it to search for the word gain. Notice that most gains are wrapped with parenthesis, which seems to indicate a negative number (please correct me if I'm wrong about that).

If this report is from busier regions of the country, how can our much smaller population keep high speed rail, which is far more expensive to build, operate, and maintain, solvent?
Comment by Lonnie Smith on February 28, 2011 at 6:23am

The lack of proof that high speed rail can be self sufficient is enough to persuade conservatives that this endeavor is a bad choice at this time. When ample evidence can be provided to counter the naysayers, a reasonable debate can and should ensue.

Comment by tamara stephenson on February 27, 2011 at 12:16pm
It seems to me that the point of the blog is that there are questions that need to be answered.  I completely agree.  However, it seems that Scott has rejected the funding out of hand BEFORE those quetions were honestly answered.  He seems all for spending money on ports, but where is that money going to come from?  He seems to me to be illogical.  Scott said the state would have to pay for cost overruns.  The private contractors said:  "no worries.  we'll cover overruns".  then he came up with a new excuse to turn down the money.  I am just concerned that his ideology is more important to him than logic.  If he is the jobs governor, why would he turn down 24,000 jobs that would come with the rail project?  is the only reason he is turning this down is because the moneyis coming from a democratic president?

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