Budget

Nelson looking for new way to funnel money to state’s high-speed rail

by Vicki Needham - 02/16/11 9:00 PM ET

Nelson said he wasn’t sure how they could funnel funding to the project, but there were ongoing talks with lawyers. If Nelson can’t find a way to recoup the funding, it will likely go to another state.

Scott made the announcement this morning during a press conference where he expressed strong opposition to President Obama’s fiscal 2012 budget, which was released Monday and includes $8 billion for high-speed rail across the country this year.

“You don’t have to be an economics expert to know when you spend more money than you take in, you will fail,” Scott said.

The battle isn’t likely to be the last on the high-speed rail front, with many lawmakers questioning its regional focus and overall usefulness.

Last week, the Obama administration announced a six-year $53 billion plan for high-speed rail as part of a larger 25-year proposal to expand train service to 80 percent of Americans.

Tea Party activists have urged Scott to refuse the funding, despite support for the project from the state’s Republicans, according to news reports.

The federal government has assumed 90 percent of the project’s cost, which is why Nelson is urgently seeking an alternative route.

Nelson mentioned the state has a high-speed rail authority that has been constituted under Florida law that could possibly accept the federal funding on behalf of the project. He said it might also be possible for the cities of Tampa or Orlando to take on that role.

“I am deeply disappointed in the decision to not move forward with the Orlando to Tampa passenger rail project,” House Transportation and Infrastructure Chairman John Mica (R-Fla.) said in a statement. “This is a huge setback for the state of Florida, our transportation, economic development and important tourism industry.”

Mica said he has urged Scott to reconsider the possibility of allowing the private sector to assume the risk and any future costs for the project.

“I made this appeal to the governor this morning,” Mica said. “With the federal government assuming 90 percent of the cost of the project, I am disappointed the private sector will not have an opportunity to even offer innovative proposals to help finance the balance of the costs and to construct and operate this system.”

But LaHood said his department had already worked with state officials to ensure the state wasn’t assuming any financial risk in the project.

“We worked with the governor to make sure we eliminated all financial risk for the state, instead requiring private businesses competing for the project to assume cost overruns and operating expenses,” he said in a statement.

“This project could have supported thousands of good-paying jobs for Floridians and helped grow Florida businesses, all while alleviating congestion on Florida’s highways. Nevertheless, there is overwhelming demand for high-speed rail in other states that are enthusiastic to receive Florida’s funding and the economic benefits it can deliver, such as manufacturing and construction jobs, as well as private development along its corridors.”