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Bill Chameides

Bill Chameides

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Look Who's Derailing High-Speed Rail

Posted: 03/29/11 10:29 AM ET

Will North Carolina be the latest to turn away federal funds for high-speed rail?

As part of the American Recovery and Reinvestment Act, President Obama set aside $8 billion to jump-start high-speed rail in regions across the country. The funds were divvied up between 13 planned high-speed corridors in 30 states and D.C., according to the allotment in the table below.

We Don't Need No Stinkin' Rail Money

That was back in 2010. But now, with a wave of new governors and legislators hitting statehouses across the nation fresh from the midterm elections, some states are choosing to opt out.

The arguments go something like this. On the "no thanks" side, it is claimed that these high-speed rail projects are just high-speed trips to financial ruin. It's all a nasty plot by the Obama administration to leave the states on the hook for mass transit systems that will never produce net revenue, thereby financially strangling states already coping with budget deficits.

high-speed passenger rail map
Click here for the White House's interactive map.
High-Speed Rail Funding Breakdown
Recipient Amount of Funds
(millions of $$)

California
$2,344
Florida
$1,250
Illinois
$1,235
Wisconsin
$822
Washington $590
North Carolina $545
Ohio
$400 
New York       
$151
Northeast Corridor* $112
Virginia
$75
Indiana
$71
Massachusetts
$70
Vermont $50
Minnesota
$41
Connecticut
$40
Maine
$35
Missouri
$31
Pennsylvania $27
Iowa
$17
Oregon $8
Multiple** $6
Texas $4
Source: White House [pdf]

* The Northeast Corridor includes Rhode Island, New Jersey, Maryland and Washington, D.C.
** Used for planning in Alabama, Colorado, Delaware, Georgia, Iowa, Kansas, New Mexico, Vermont, West Virginia

Not so, say the folks on the other side. For them these funds offer a valuable opportunity to build badly needed infrastructure that will grow jobs and investment for the future as well as provide relief from highway gridlock. High-speed rail would also help bring the United States into the 21st century, lest we be figuratively left in the dust by the modern railway systems of Europe and China.

So Who Has Sent the Money Back?

So far three states have pulled the plug on their projects.

Too bad. Not only are these states throwing away the money already spent on the projects, but taxpayers are now on the hook (to the tune of tens of millions of dollars) for investments that the federal funds would have covered.

Et Tu, NC?

Not to be outdone, North Carolina's legislature may be about to join the "no thank you" chorus.

A one-page bill, titled "No High-Speed Rail Money from Federal Gov't" [pdf], was introduced by State Representatives Ric Killian and Phillip Frye last week. It would send North Carolina's $545 million share of high-speed rail funds back to the feds -- and try to put any high-speed rail funds accepted by the state into a general fund that the Assembly would later appropriate as it sees fit (which, as Transportation Secretary Ray LaHood explained to Wisconsin, would actually not be an option -- in other words, either you use the money for high-speed rail or you give it back).

But refusing the federal rail dollars may be a tougher sell here given the project's support from the state's Democratic governor Beverly Perdue.

One State's Garbage Is Another's Treasure

In case you're worried about those federal funds -- don't be. Even if North Carolina does follow the lead of Ohio and company, there are other states that will gladly pick up the financial slack. (See here and here.) "We'd love to have it," said Illinois Transportation Secretary Gary Hannig as quoted in the Chicago Sun-Times. Illinois State Sen. Jeffrey Schoenberg (D-Evanston) seconded the notion: "If the new governor of Wisconsin is overwhelmed by $800 million of federal funds, we'd be happy to take that burden off his back."

Could be that fast train is going somewhere after all.

Crossposted with www.TheGreenGrok.com.

 

Follow Bill Chameides on Twitter: www.twitter.com/theGreenGrok

Will North Carolina be the latest to turn away federal funds for high-speed rail? As part of the American Recovery and Reinvestment Act, President Obama set aside $8 billion to jump-start high-speed r...
Will North Carolina be the latest to turn away federal funds for high-speed rail? As part of the American Recovery and Reinvestment Act, President Obama set aside $8 billion to jump-start high-speed r...
 
 
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03:39 PM on 03/30/2011
Borrowing money to be paid back using late 21st century money to buy early 20th transportation to benefit early 2th century politicians.
03:04 PM on 03/30/2011
These grants will not cover the operating loss that these systems will have.

If HSR is so great why doesn't the federal government fully fund it? Including the ongoing operating costs?

Besides, show me a government project of the same scale that doesn't have major cost overruns....
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thereisonlyoneparty
more amazing than you
07:36 PM on 03/30/2011
I came to make that point only to see it already made.

That is the exactly the problem.  While the money upfront may cover building costs it does not really do much for long term costs associated with operations.

Passenger rail in the US is a losing proposition because air travel is incredibly cheap (round trip air fare is less than rail one way) and the distances between places people want to go are too great.  Commuter rail can work, but high speed rail is garbage.
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HUFFPOST BLOGGER
Bill Chameides
04:42 PM on 04/27/2011
One reason air travel appears to be so “incredibly cheap†is that we have subsidized and continue to subsidize it. This list gives a general flavor of subsidies: http://www.narprail.org/cms/index.php/resources/more/aviation_subsidies/ More reading on selected subsidies here (http://www.gao.gov/new.items/d07793t.pdf ) and here (http://www.gao.gov/new.items/d03497t.pdf ).

And while I can only speak for myself, there are lots of instances where I would greatly prefer to take a train and avoid the hassle of an airport, e.g., the trip from NYC to DC. The problem is for most trips there is not a viable train option. That people would opt for a high-speed train option is evident from its use in Europe.
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HUFFPOST SUPER USER
forestnfama
I was born at a very early age....
11:21 AM on 03/30/2011
The whole world is building high speed infrastructure while the republicans and the corporate titons are cutting education and worrying about what gays do. Get a life people.
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HUFFPOST SUPER USER
forestnfama
I was born at a very early age....
11:14 AM on 03/30/2011
What do you expect from neanderthals. The regressives have since the days of horse and buggies were screaming that cars would kill the the whip industry. Its all about the status quo.
09:23 AM on 03/30/2011
As an IT consultant in the North East getting in and out of NC, by air, with all the thunderstorms is a nightmare.

Continuing the Acela Express from DC to RTP, NC area is a no brainer

And yes for those that don't know Amtrak's Acela from Boston to DC makes a handsome profit.

http://en.wikipedia.org/wiki/Acela_Express
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Pandoras Folly
This Micro-bio is of legendary quality
09:12 AM on 03/30/2011
Why....i don't understand.....it confounds me why....... (shakes head)
i live on the Gulf coast between AL and MS and everyone here from rednecks to little old ladies to green hippies and blue collar workers thinks a high speed rail line thru here would be a godsend, a great investment, and would create jobs. These lawmakers should be questioning themselves on what century they live in when the people i live amongst ALL think this is a good idea.
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HUFFPOST SUPER USER
Tygartman
Hoping for Change in 2012
08:36 AM on 03/30/2011
The so-called high speed rail project here in Ohio connecting Cincinnati and Cleveland was going to average 45 mph. Guess it depends on what your definition of "high speed" is. And once you get to your destination city, you have no way of getting around....you're stuck at the terminal. Ridiculous. Not to mention it was projected to run a $17 million deficit per year (which means you probably have to multiply that figure by a factor of 5). A total government boondoggle.
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Pandoras Folly
This Micro-bio is of legendary quality
09:21 AM on 03/30/2011
you know its funny. Back in college i did a report on national infrastructure creation and as far back as the early 1800s you see the same exact kind of arguments for every major infrastructre improvment made from building simple dirt roads, digging canals, paving roads, the interstate system, Rural electrification. all see the same exact set of arugments: its too expensive to build/operate/maintain, we can't pay for it right now, what good will it be. the problem with the Ohio section is they aren't spending enough money on it. they should go ahead and plunk down 10 billion and build a railway equipped for 300mph trains.
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thereisonlyoneparty
more amazing than you
07:39 PM on 03/30/2011
Trains have to stop to be maintain ridership.  Not everyone is going from City A to City B.  And there are speed limits around residential areas.  And trains have to accelerate and decelerate, which takes time (we call this physics).

Trains have been overtaken by other technology.   For short distances it can work (commuter rail or local subway systems), but other than that it is just not used.  It takes too long and is too expensive.
05:01 PM on 03/29/2011
There is no demand for high speed rail, it would result in massive cost overruns and would require massive government subsidies to keep it going. At a time when we are struggling to get debt under control, embarking on a very expensive road to no where seems like something only a big government, big spending liberal could like.
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Pandoras Folly
This Micro-bio is of legendary quality
09:14 AM on 03/30/2011
There is also no demand for jet packs, waiter-bots, and food in a pill. We have to make something before we can have a demand for it.
02:40 PM on 03/29/2011
Maybe I just don't get it, could someone explain why the right does not want high speed rail to take off? Wouldn't that bring jobs to thousands of Americans? wouldn't that take thousands of cars off the roads? Wouldn't that reduce our carbon footprint? Wouldn't this be logical? I am really confused, maybe someone could enlighten me.
04:30 PM on 03/29/2011
Simple: they want Obama and America to fail.
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thereisonlyoneparty
more amazing than you
07:44 PM on 03/30/2011
Trains are awful.  Have you ever been on a train?   A real train?

Even high speed trains are limited.   They have to make stops.  they can only go certain speeds around residential areas.  They are limited by the use of the tracks and weather.  They need to accelerate and decelerate (which takes time for massive trains).  It just does not work.

It can work in some places, but not for long distance travel.  People are not going to deal with it.  The limited routes make transfers a huge pain in the tuchus.

the only benefit would be no security hassles.  And that would only last until some yahoo blows up a train.

This is not the worst idea possible, but it is bad (there are people who are promoting blimps as the future of travel--blimps limited to about 100mph in best case scenario.)

As for the jobs thing that does not really matter.  The government could do all sorts of projects to create jobs.  That does not mean that there would be a benefit to the nation (the money has to come from somewhere).
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HUFFPOST BLOGGER
Bill Chameides
04:34 PM on 04/13/2011
thereisonlyoneparty: Guess you have not sat in a traffic jam in a while.
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Jim Milks
Ecologist
01:31 PM on 03/29/2011
The focus on high-speed interurban rail is only a start toward a rational long-term transportation system for our country. We also need to rebuild the trolley systems destroyed by National City Lines in the late 1940s and 1950s (see http://environment.about.com/od/fossilfuels/a/streetcars.htm and the 1996 PBS documentary "Taken for a Ride"). Until we have such a system back in place, congestion will continue to build on our roads and we will continue to import increasing amounts of oil for use as transportation fuel. Instead of constantly adding more lanes to already packed roads, our governments should be seriously thinking of rebuilding the light rail system that at one time moved the majority of Americans.
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HUFFPOST SUPER USER
Coco Morgan
Retired. Living off-grid in Belize.
01:02 PM on 03/29/2011
Totally amazing that certain states can be so short sighted as to not realize the benefits of high-speed rail service. These opponents really need to get out and see the rest of the world.
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HUFFPOST SUPER USER
Jim Milks
Ecologist
01:15 PM on 03/29/2011
They will realize their mistake if high-speed rail takes off in the states that are accepting the money–and then scream about how unfair it was that some states got the money and others didn't.