The Conservative Case for Accepting $2.4 billion Federal HSR Funding for Florida

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Florida High Speed Rail Coalition

Associated Industries of Florida (AIF) is putting its weight behind high-speed rail as the political debate heats up.

The business group issued a statement Tuesday, saying it has been a strong advocate for high-speed rail in Florida for many years and is forming a coalition to ensure the project remains on track.

In a telephone conversation, AIF President and CEO Barney Bishop declined to say who would be part of the coalition, but his group is known for its powerful lineup of lobbyists, consultants and members.
The initial leg of the rail, from Tampa to Orlando, would be followed by an extension south to Miami.

Bishop, who has ridden on France's high-speed system, said he was enthusiastic about the second leg since the long distances between many stops would allow the train to consistently reach high speeds.

He said Wednesday’s news release was in response to a Jan. 6 report by the Reason Foundation.

The group expressed concern that ridership numbers are usually overestimated, while costs are underestimated, on major transportation rail projects. The state could get stuck with a $3 billion bill, the libertarian group warns.

However, Bishop said, there are seven or eight teams eager to bid for the initial leg, which would have the cachet of the nation's first high-speed rail line.

Teams from China, Japan and Korea are among those interested, he said, and might even be talked into assembling equipment in Florida.

Their eagerness also could mitigate the risk to the state of cost overruns to the point of being nil, Bishop said.

At this point, there's "no harm, no foul," by letting the project go to the request for proposals stage, he said.

AIF estimates the Orlando-to-Tampa leg will bring 5,000 jobs at a time when they are desperately needed.

The federal government is offering up to $2.4 billion for the first leg, but, in an era of growing fiscal conservatism, there's concern about state costs.

Some media accounts have indicated that state Senate President Mike Haridopolos, R-Melbourne, is opposed to high-speed rail, but Bishop said he thinks that's a misinterpretation. Haridopolos isn't against high-speed rail â€" just against the state being on the hook for funding, he said.

AIF says a $280 million match is required to get the federal funds, but the money could come from the private sector. Cost overruns could also be the responsibility of the bidder who is awarded the project, the group says.

Central News 13 in Central Florida, which is owned by a subsidiary of American City Business Journals’ parent company, reports that the Florida Department of Transportation's Kevin Thibault told a key Senate committee Tuesday that building the line would generate more than 48,000 new jobs.

While Gov. Rick Scott has not fully embraced the effort yet, and promised Tuesday during a Miami speech to scrutinize the state budget, he has run on a platform of creating 700,000 jobs in seven years.

Scott may be making a strategic move in not rushing to embrace the system, state Sen. Paula Dockery, R-Lakeland, told Central News 13.

"I think that this governor has one asset that many of us don't, and that is he's a great negotiator," she said. "And, so I would take a lot of what he's saying now as a way to get the very best deal for the taxpayers of the state of Florida, and I'm all for that."

The Tampa Tribune reported Wednesday that Thibault assured legislators that taxpayers would not be

Another reason supporters of high-speed rail should be concerned: The Reason Foundation report includes a skeptical quote from Robert Poole, its director of transportation, who also was called an adviser to Scott's administration.

"It's understandable that some are dreaming of flashy high-speed rail trains carrying tourists and residents between the two cities," Poole says. "Unfortunately, the numbers just don't add up. When you look at realistic construction costs and operating expenses, you see these trains are likely to turn into a very expensive nightmare for taxpayers."

The foundation says Florida should reject the federal funding, just like Wisconsin and Ohio have.

Bishop responded that if Florida does not take the money, it will go to another state, so it won't be like the state is forestalling government spending.

The transportation department's high-speed rail site breaks down the federal funding so far this way:

January 2010: $1.25 billion from stimulus funds
October 2010: $ 800 million appropriation, which requires a 20 percent match
December 2010: $342 million from stimulus funds
The transportation department has started a 30-month evaluation of the costs and environmental impact of the Orlando-to-Miami route, the website says.

A key question is what route the system would take.

One scenario is a leg heading straight east from Orlando and then following Interstate 95 into South Florida. (The I-95 corridor is already home to Tri-Rail throughout much of South Florida.)

Another scenario would have the high-speed rail line follow Florida's Turnpike.

Bishop said AIF has not taken a position on either route, but agreed that wherever stations are located will have an impact on development.




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Read more: AIF takes on high-speed rail | South Florida Business Journal

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