Reason Foundation

Search Reason

The California High-Speed Rail Proposal: A Due Diligence Report

Policy Study 370

With the high costs of building in California and the history of cost overruns on rail projects, the final price tag for the complete high-speed rail system will actually be $65 to $81 billion, according to the Reason Foundation report.

And while the Rail Authority forecasts between 65 and 96 million intercity riders by 2030, the due diligence report finds these projections are dramatically inflated. After compiling numerous ridership studies previously conducted for California rail systems, the study demonstrates the state can expect 23 million to 31 million riders a year in 2030.

Any failure to meet the Rail Authority's lofty ridership projections would force ticket-price increases, further cutting ridership, or require taxpayer subsidies to cover the financial shortfall, adding to future budget deficits. The due diligence report finds "the San Francisco-Los Angeles line alone by 2030 would suffer annual financial losses of up to $4.17 billion."

This Study's Materials

• Study: California's High-Speed Rail System Will Cost Tens of Billions More Than Estimated, Adding to State Deficit, Press Release
  Joseph Vranich, Wendell Cox and Adrian Moore
• Full Study, PDF, 1.7 MB
  Joseph Vranich, Wendell Cox and Adrian Moore
• Brief: High-Speed Rail Plan Is A Financial Boondoggle, PDF, 151.8 KB
  Joseph Vranich, Wendell Cox and Adrian Moore
• Brief: Exaggerating Rails Effects on California Transportation, PDF, 152.3 KB
  Joseph Vranich, Wendell Cox and Adrian Moore
• Brief: Marginal Impact on Greenhouse Gas Emissions, PDF, 154.3 KB
  Joseph Vranich, Wendell Cox and Adrian Moore
• Policy Brief, PDF, 485.9 KB
  Joseph Vranich, Wendell Cox and Adrian Moore




Related Articles

• California High-Speed Rail Findings at a Glance


Print This