Few proposals on the November ballot make as little sense as Prop 1, the so-called High Speed Rail initiative. Why is Prop 1 so bad? Let’s count the ways:
First, Prop. 1 is a boondoggle that will cost taxpayers nearly $20 billion dollars in principal and interest. Taxpayers will foot this bill – it’s not “free money.” According to the measure (Article 3, Section 2704.10) “…the full faith and credit of the state of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds….” This measure will take $20 billion dollars out of the general fund over the life of the bonds. That’s over $2,000 for an average family of four!
Second, California can’t afford higher budget deficits. With our budget crisis, billions in red ink, pending cuts to health care, the poor, parks and schools, now is not the time to add another $20 billion in state debt and interest. The state already has over $100 billion dollars in voter approved bonds and our bond rating is already among the worst in the nation and this could lower it even further.
Third, there are much better uses for taxpayer dollars. California has higher priorities than this $20 billion dollar boondoggle. What would $20 billion buy?