Proposition 1A: Safe, Reliable High-Speed Passenger Train

In 1996, the state created the California High-Speed Rail Authority (the authority) to develop an intercity train system that can operate at speeds of 200 miles per hour or faster to connect the major metropolitan areas of California, and provide service between northern California and southern California.

Over the past 12 years, the authority has spent about $60 million for pre-construction activities, such as environmental studies and planning, related to the development of a high-speed train system. The proposed system would use electric trains and connect the major metropolitan areas of San Francisco, Sacramento, through the Central Valley, into Los Angeles, Orange County, the Inland Empire (San Bernardino and Riverside Counties), and San Diego.

The Proposition 1A authorizes the state to sell $9.95 billion in general obligation bonds to fund (1) pre-construction activities and construction of a high-speed passenger train system in California, and (2) capital improvements to passenger rail systems that expand capacity, improve safety, or enable train riders to connect to the high-speed train system. The bond funds would be available when appropriated by the Legislature. General obligation bonds are backed by the state, meaning that the state is required to pay the principal and interest costs on these bonds.

This measure will cost the state about $19.4 billion, assuming 30 years to pay off both principal ($9.95 billion) and interest ($9.5 billion) of the bonds, which is equivalent of payments of about $647 million per year. When constructed, additional unknown costs, probably in excess of $1 billion a year, to operate and maintain a high-speed train system. The costs would be partially, and potentially fully, offset by passenger fare revenues, depending on ridership.

The proposition is on the ballot for the November 4th, 2008 General Election.

Sources:
http://www.voterguide.sos.ca.gov/title-sum/prop1a-title-sum.htm
http://www.smartvoter.org/2008/11/04/ca/state/prop/1A/