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Two states lose federal high-speed rail money

Associated Press
December 9, 2010
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The Obama administration is taking $1.2 billion in high-speed rail money away from Ohio and Wisconsin and awarding it to 12 other states, Transportation Secretary Ray LaHood said Thursday.

Both Ohio and Wisconsin have elected incoming Republican governors who oppose the rail projects. Those governors, whose states have been hit hard by the economic downturn, had asked if they could divert the money to other projects.

But LaHood said he was awarding the money to states that are eager to have it for their rail projects.

High-speed trains will not only improve transportation but reinvigorate manufacturing and put people back to work in jobs that pay well, LaHood predicted in a statement.

States gaining the most money include California, $624 million; Florida, $342 million; Washington, $161 million; and Illinois, $42 million. Other states receiving lesser amounts include New York, Maine, Massachusetts, Oregon, North Carolina, Iowa, Vermont and Indiana.

A commuter rail line in Wisconsin between Milwaukee and Chicago will still get about $2 million.

Last January, the U.S. Department of Transportation awarded Indiana $71.4 million for its part of a planned high-speed-rail project that would run from Chicago to suburban Detroit. High-speed rail advocates would like to see other routes in the state, including one from Chicago to Indianapolis.

In Ohio, Gov.-elect John Kasich had declared dead a project that would have created passenger train service between Cincinnati, Columbus and Cleveland. He had requested that LaHood allow him to use the $400 million in federal funds on other transportation projects like road construction or freight lines.

The economic recovery law that authorized funding for high-speed rail projects stipulated that the funds can't be used for other purposes, however.

Kasich also sought to have the money returned to the federal treasury to reduce the deficit if it couldn't be used to meet other Ohio needs. "He finds it tragic that instead of saving taxpayer money, they would simply waste it elsewhere," said Rob Nichols, Kasich's spokesman.

Kasich has said that the top speed of 79 miles per hour on the proposed Ohio project is too slow and questioned whether enough people would ride it.

But outgoing Ohio Gov. Ted Strickland, a Democrat, said he "can't understand the logic of giving up these vital, job-creating resources to California and Florida at a time when so many Ohioans need jobs."

Wisconsin Gov.-elect Scott Walker campaigned against a Madison-to-Milwaukee rail line, which would have received $810 million, as a waste of taxpayer money. Walker also said he didn't want to commit the state to annual operating subsidies once the line was complete, although the project's supporters predicted it would make money. Walker on Thursday called the death of the proposed line "a victory."

Walker had also sought to spend the money on other Wisconsin projects such as roads and bridges.

The loss of the rail project is "a tragic moment" for Wisconsin, said outgoing Gov. Jim Doyle, a Democrat.

Without rail between Milwaukee and Madison, it will be difficult for Midwestern leaders to fulfill their vision of having 110-mph trains linking Chicago, Milwaukee, Madison and Minneapolis-St. Paul. The route was a key segment in the Midwest Regional Rail Initiative effort by nine states.

Political leaders in states benefiting from the cancellation of the Wisconsin and Ohio projects have been lobbying for a share of the $1.2 billion since Election Day.

Democratic Sen. Dianne Feinstein of California said, "No other state is as ready, as able, or as determined to develop a high-speed rail system in the near future."

California is working toward the construction of a system that would extend some 800 miles, linking Sacramento and San Francisco to San Diego. Construction is expected to begin in late 2012.

In Florida, Gov.-elect Rick Scott, a Republican, has opposed spending state funds to help build an 84-mile bullet train line between Tampa and Orlando. But Sen. Bill Nelson, D-Fla., said that the new money — combined with $280 million the state has already agreed to put up and $2 billion previously committed by the federal government — is enough to fully cover the $2.65 billion price tag for construction.

"The federal government has stepped up and done its part," Nelson said in a statement. "There should be no reason now why this can't get done."

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  • What??!!
    "We community transportation, lower impact trains, back too."

    What does that even mean? If anything.
  • NOW
    We need the high speed trains now. They could not build them fast enough! We community transportation, lower impact trains, back too. College Corridor!!!

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

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