We may have to pay 110 -130 million not to build HSR.

[JeffreyS]

We may have to pay back money the Fed advanced us after our legislature and Governor approved the plan.
http://jacksonville.com/news/florida/2011-03-07/story/nelson-florida-may-have-pay-not-building-high-speed-rail

Nelson: Florida may have to pay for not building high speed rail
Posted: March 7, 2011 - 7:11pm
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By Larry Hannan

It would cost $2.7 billion to build high speed rail between Orlando and Tampa.


But with the project on life support, U.S. Sen. Bill Nelson is arguing that it may end up costing state taxpayers even if the project dies.


Nelson, D-Fla., said the current plan to construct high speed rail will not cost the state anything. But if the project is abandoned, the state will have to reimburse $110 million to $130 million to the federal government.


Gov. Rick Scott has refused $2.4 billion in federal funds to build high speed rail. The final $300 million would come from a private company that would partner with the state to build and operate the rail system.


Scott said he believes the project will end up costing more than $2.7 billion, and the state will have to pay for the cost overruns. He also doubts people will ride the system and doesn’t believe it will create enough permanent jobs to justify the cost.


But the Legislature has already approved spending $130 million for the project. That money comes from the state, which is then reimbursed from the federal government through the $2.4 billion fund.


Last week Scott’s general counsel, Charles Trippe,  told the Florida Supreme Court that $110 million of the money has already been spent.


Nelson argued that the federal government advanced that $110 million under the assumption that high speed rail would be built. “If the project doesn’t move forward, I think there’s a good chance that the [U.S.[ Department of Transportation will ask for its money back,” Nelson said.
Officials with the governor’s office blasted Nelson and declined to respond to the suggestion that rejecting rail would cost money.


“This is just another desperate attempt by Sen. Nelson to waste state and federal taxpayer dollars,” said Scott spokesman Brian Hughes.
Hughes couldn’t say on Monday where the $110 million went, or what it was spent on.


Speaking Monday in Jacksonville, Nelson didn’t characterize himself as desperate but did vow to do everything possible to save the project.


“It’s unfortunate that Gov. Scott is willing to throw away 24,000 jobs,” Nelson said, citing the estimated number of construction jobs the project would create.


People also need to realize that another transportation option needs to exist in the state, Nelson said.


“We can’t just rely on cars with the high gas prices and continued traffic congestion,” Nelson said. “Eventually high speed rail can go to Miami, Jacksonville and all the other parts of the state.”


Phase 2 of high speed rail is supposed to be Orlando to Miami. Nelson said the third phase would probably go to Jacksonville.


Tampa, Lakeland and Orlando are willing to form a partnership that makes them responsible for the construction of high speed rail, ensuring the state doesn’t have to deal with overruns.



Read more at Jacksonville.com: http://jacksonville.com/news/florida/2011-03-07/story/nelson-florida-may-have-pay-not-building-high-speed-rail#ixzz1FygB1fCT

[thelakelander]

LOL!  It would be really funny if this ends up being true.

[Jumpinjack]

Even if the money part is not true, the goodwill and investment in Florida by many companies has been damaged by this dingbat governor. And let's not forget that this is the second time HSR has been derailed by a sitting governor.