Halt California funds for high-speed rail: budget watchdog

SAN FRANCISCO | Tue Apr 17, 2012 8:55pm EDT

(Reuters) - California lawmakers should not approve Governor Jerry Brown's budget proposals to provide additional funds for the state's pricey planned high-speed rail system, the state's budget watchdog agency said in a report on Tuesday.

The report by the nonpartisan Legislative Analyst's Office said the California High-Speed Rail Authority has "not made a strong enough case for going forward with the project at this time."

The report comes after the authority earlier this month slashed its construction cost estimates by some $30 billion to $68.4 billion, tackling some of the cost concerns hanging over the project in the legislature, whose members must approve the release of the first chunk of the nearly $10 billion in rail bond funds voters approved in 2008.

Funding beyond proceeds from state debt and $3.5 billion from the federal government to build the statewide high-speed system is "highly uncertain," the report said.

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