Friday, January 9, 2009

California High-Speel Rail Agency Running Out of Money

The California High-Speed Rail Authority is facing a cash crunch, the San Francisco Chronicle reports. The agency's budget for the current fiscal year, which ends in June, anticipated receiving $29 million from the proceeds of the $9.9 billion bond sale authorized by voters in November. But the bonds have yet to be sold because of California's fiscal woes and the state of the municipal bond market.

Consequently, the Authority is withholding payment on engineering and design contracts in progress and are not awarding new contracts. Next week, the agency will request a loan from the state controller and keep it work plan moving forward for the rest of the fiscal year. If the loan isn't received some projects will have to be postponed until the next fiscal year, at least.

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