FRESNO (KMJ) — An audit into the California High-Speed Rail Authority has delivered pages of criticism directed towards the state agency. The 93 page report by State Auditor Elaine Howell begins describing how the Authority’s “flawed decision making” has led to billions of dollars in cost overruns.
The investigation, released Thursday, also detailed that there is enough money to construct the initial segments but not enough to connect them together, that all options for reducing costs have been exhausted, and the risk of costs rising is high.
“This audit has confirmed that it is a project in collapse,” said Assembly member Jim Patterson. Patterson had long campaigned for an audit of the Authority.
“That it misspent billions of dollars, that it caused its own delays and cost overruns, and it seems to be no end game in completing a high speed rail project in the State of California.”
Patterson said the report also suggests fraud on the part of Authority.
My #CaHSR audit results are damning. The glossy PR campaign can’t cover up the truth here. UP NEXT: The Federal audit is ongoing & may force a $3.5 bil repayment from CA – a devastating blow. https://t.co/3g4h9762DL
— Jim Patterson (@JimPatterson559) November 15, 2018
According to the State Auditor, the use of federal grant money awarded in 2010 could spell major problems unless construction on the Central Valley portion moves twice as fast as it has so far.
“Missing the new deadline could expose the State to the risk of having to pay back as much as $3.5 billion in federal funds,” wrote California State Auditor Elaine Howell.
In response, the High-Speed Rail Authority said that it has begun implementing these and other corrective actions to remedy the issues identified.
Read the full report clicking here.
Hear the report from KMJ’s Dominic McAndrew as it aired:
