California's $100BN Railway to Nowhere Exposes the Cost of Democratic Incompetence

The latest broadside in the seemingly unending war between President Trump and California Governor Newsom came with a presidential attack on the state’s long-delayed, over-budget high-speed rail project. Trump, who seems determined to stop federal funding for the project, even suggested that its dire problems will pose a challenge for Newsom as he gets ready for a run for the 2028 Democratic nomination.

If Newsom were prone to self-reflection, he’d admit that the line – intended to connect LA and San Francisco – is an embarrassment. The rail authority estimated in 2008, when voters approved $9 billion for the system, that it would cost $33 billion and start running by 2020. The projected cost has since ballooned to over $100 billion.

Governing magazine, hardly a voice for less public spending, placed the blame largely on incompetence – “uncoordinated planning” that ignored basic construction logistics and bent to the need to please political factions. Indeed, the route was in large part sold to people in the state’s hard-pressed interior as an economic boon, which ignores the nature of the area, whose economy is largely based on agriculture, manufacturing and oil. Wider truck lines for congested freeways would make far more economic sense.

Many projects go over budget, but, as the president has suggested, for once plausibly, the California high-speed train may be “the worst managed project” he’d ever seen. Even progressives are aware of this failure. The first to jump off the train, so to speak, was Kevin Drum at Mother Jones a decade ago, who called the project “ridiculous”. He assaulted the cost overruns and absurd ridership projections.

More recently, the train was singled out for infamy by the authors of Abundance. This new progressive bible, which embraces all the memes of the Left, for example on urban density and climate, expresses horror at how the train has been delayed and has escalated in cost. Today, even Democrats like former California State Speaker Anthony Rendon admit that there is “no confidence” in the project and have been far from anxious to pour more good money after bad.

Unless there is an unanticipated flow of state funds, the Legislative Analyst’s Office suggests that the project could grind to a halt within 15 months. There is now only enough money, and perhaps not even that, for a line from agriculture and oil-dominated Bakersfield to even more rustic Merced. Not exactly the glamorous LA-San Francisco route originally mooted, much less something to rival the lines connecting Tokyo to Osaka or Paris to Lyon.

Despite being described by Hoover Institute economist Lee Ohanian as “the greatest infrastructure failure in the history of the country”, the California disaster does admittedly have a great deal of competition. A similar pattern can be seen in the slow pace of repairs to the collapsed Francis Scott Key Bridge in Baltimore’s Harbour. Boston’s Big Dig (Central Artery/Tunnel Project) was plagued by cost overruns and delays, eventually coming in at nearly $25 billion, $10 billion more than previously reported.

In fact, the entire transit industry, a favourite target for investment among progressives and greens, is stymied by what the Marron Institute at New York University found were “among the highest transit-infrastructure costs in the world” – far higher than not only China, which can ascribe to less cumbersome processes, but the likes of Sweden, Italy, and Turkey as well.

Phase one of New York’s Second Avenue Subway, Marron notes, clocked in at 8 to 12 times more expensive than what the international analysis suggested should be the baseline cost, reflecting strict overtime rules, local union agreements that limit the available labour pools geographically, and an unwillingness to address staffing and labour agreements.

But even in this world of lavish overruns, Newsom’s California stands in a league of its own. Back in 2015, UC Berkeley scholar Karen Trapenberg Frick outlined how the cost of replacing the eastern section of the San Francisco-Oakland Bay Bridge rose from an estimated price of $250 million in 1995 to $6.5 billion by September 2013. This was in part due to political pressures from elected officials, according to a report prepared for a state Senate committee.

But nothing quite matches the incompetence and overspending of Newsom’s choo-choo. It has likely undermined support for building a national network of high-speed trains, something promoted in Alexandria Ocasio-Cortez’s Green New Deal.

Despite the green visions, high-speed trains seem a bit of a step back – the St Louis Post-Dispatch labelled them “a bridge to the 19th century”. In a world where most people drive, and many commute from home, the idea of sinking tens of billions into high-speed projects seems a poor bet, as Britain has already found with the cancellation of large parts of the HS2 project. Even in China, where political opposition is verboten, the choo-choos have been plagued by corruption, rising costs and massive indebtedness.

Under Biden, Newsom enjoyed large lumps of gravy for his train, but under Trump, he is now likely to have to choose between funding the money-mad rail network or doing such basic things as balancing his budget and facing California’s gargantuan public employee pension costs, as well as paying for healthcare for the state’s estimated 2.5 million undocumented immigrants.

The overpriced choo-choo reflects the ultimate dilemma for Democrats like Newsom. In the 1930s and 1940, under Democrats, American ingenuity produced the infrastructure that underpinned the world’s largest industrial economy – the Hoover Dam, the Tennessee Valley Authority, and countless bridges, roads, and other critical infrastructure.

Today’s presumed heirs of FDR still talk big about infrastructure, but are loath to offend public unions, green lobby groups and progressive non-profits. Most of the successful case studies on infrastructure come from red states like Florida, which built its new train lines at something approaching original costs and deadlines.

If you want to advocate for more government, perhaps it’s best to prove that you can do this efficiently. Newsom’s high-speed rail line proves that, for now, the progressives are prisoners of their own massive incompetence.

This piece first appeared at: Telegraph.

Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Roger Hobbs Presidential Fellow in Urban Futures at Chapman University and and directs the Center for Demographics and Policy there. He is Senior Research Fellow at the Civitas Institute at the University of Texas in Austin. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Photo: California High-Speed Rail Authority, in Public Domain as a Government Work.