Please ensure Javascript is enabled for purposes of website accessibility

A First Look at Fresno State’s Quarterback Battle

2 days ago

Israeli Columnist Alleges Ethnic Cleansing Plan in Gaza

2 days ago

Tesla to Roll out Bay Area Robotaxis With Safety Drivers, Report Says

2 days ago

Thailand and Cambodia Exchange Heavy Artillery Fire as Border Battle Expands

2 days ago

California Cannot Require Background Checks to Buy Ammunition, US Appeals Court Rules

3 days ago

TikTok Will Go Dark in US Without Chinese Approval of Sale Deal, Lutnick Says

3 days ago

Fresno County Authorities Still Searching for Missing Mother and Infant

3 days ago
HSR Audit: Cost Overruns, Poor Management, Slow Trains
By admin
Published 7 years ago on
November 15, 2018

Share

California’s under-construction high-speed rail system is mismanaged, faces budget shortfalls, and will operate slower than promised.

Those are some of the conclusions reached by the state auditor in a report released Thursday (Nov. 15) morning. The report is the latest saga in the state’s effort to build a bullet train connecting San Francisco to Los Angeles.

Fresno serves as the system’s construction point of origin, with land purchased, infrastructure built, and businesses relocated.

Auditor Highlights

Elaine Howe

The title of the 93-page report conducted by state Auditor Elaine Howe leaves no confusion on her conclusions: “California High‑Speed Rail Authority: Its Flawed Decision Making and Poor Contract  Management Have Contributed to Billions in Cost Overruns and Delays in the System’s Construction.”

The report’s summary states:

— The High-Speed Rail Authority secured $28 billion for the initial phases; however, it may cost more than $77 billion to complete the Madera to Bakersfield and San Francisco to Gilroy lines. And, those two segments will not be connected.

— Modified plans mean that HSR will share some of its track with other train systems, which will lower speeds.

— The authority “exhausted all feasible options to use existing infrastructure” which could raise future costs.

— There is a high risk of additional increased costs because the authority moved ahead with the project before completely securing land. Costs of contract changes led to an additional $600 million in costs.

— The authority needs to reign in contract management.  “It currently has 56 contract managers throughout its organization, but these individuals generally do not serve in contract management roles full time. Moreover, it has placed portions of its oversight of large contracts into the hands of outside consultants.”

Patterson Livid

Jim Patterson

“This is a damning audit. The days of happy talk are over.” — Assemblyman Jim Patterson

Assemblyman Jim Patterson (R-Fresno) long ago sounded the horn on troubles with HSR. His efforts led to the state audit.

“This is a damning audit. The days of happy talk are over,” Patterson said. “The most authoritative, well-regarded, trusted, bipartisan, nonpartisan audit authority in California has just told us the truth.”

He says it is now up to Gov.-elect Gavin Newsom and the incoming Legislature to make the next move.

“(They) better wake up to the reality of it and do their responsibility,” he said. “It is a project in collapse.”

Patterson isn’t optimistic that the HSR Authority will listen.

“The High-Speed Rail Authority made it clear. They are going to empty the cash box. They are going to spend every penny they have,” Patterson said.

Patterson said that voters permitted spending on the rail and they will need to vote to end it. He also warned of a pending federal audit. By the authority spending federal money on the project when it didn’t secure the land, Patterson said the HSR Authority engaged in “fraudulent behavior.”

Auditor’s Recommendations

The auditor’s report recommends that the authority establish benchmarks for property purchases, utility agreements, and other contracts.

The authority should also provide quarterly updates to the Legislature about meeting the federally mandated 2022 deadline.

The report calls for tighter accountability in contracting and management systems.

Authority’s Response

Coincidentally, the HSR Authority’s board of directors held a regularly scheduled meeting in Burbank on Thursday. Prior to the meeting, board member Mike Rossi issued a statement saying that the authority is already implementing cost controls, even though it doesn’t agree with all of the auditor’s conclusions.

“Many of the recommendations are similar to steps we have previously identified through our own internal reviews.  The Authority will promptly implement all of the Auditor’s recommendations, as we did following the last audit that was conducted in 2012.  We will report our progress to the Auditor, the Legislature and the public as we do so,” Rossi said.

“Our challenge has been to evolve our organization and improve program management processes while concurrently delivering this complex program of megaprojects,” Rossi continued. “Since 2010, we have faced many constraints, from certain restrictions in the original bond act, to deadlines for the expenditure of federal funds, to litigation that halted construction progress for about a year.”

Arambula Still Believes

Assemblyman Joaquin Arambula (D-Fresno) sits on the HSR board as an ex officio member. He also supported the state auditor investigation, and believes the board is already implementing the recommendations.

“I encourage the HSR authority continuing to review and implement the auditor’s recommendations so we can improve transportation options for the people of California and create jobs in the Central Valley,” Arambula said in a statement.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

California School Board Resigns After Audit Reveals $180M in Improper Funding

DON'T MISS

NASA Says 20% of Workforce to Depart Space Agency

DON'T MISS

Frustration, Gaza Alarm Drove Macron to Go It Alone on Palestine Recognition

DON'T MISS

Trump Golfs in Scotland as Epstein Questions Persist

DON'T MISS

Visalia Police Arrest Armed Robbery Suspect at Long John Silver’s

DON'T MISS

Grand Rising Brings Sober Day Party Vibes to Fresno

DON'T MISS

Jack McAuliffe, Who Started a Craft Beer Revolution, Dies at 80

DON'T MISS

Fresno Crash Leaves One Dead After Car Submerges in Canal

DON'T MISS

Lemoore Farmers Fed Up With Lack of Representation on Groundwater Agency

DON'T MISS

‘Jenny from the Block’ Rescued After Camping Out by Calwa ATM

UP NEXT

NASA Says 20% of Workforce to Depart Space Agency

UP NEXT

Grand Rising Brings Sober Day Party Vibes to Fresno

UP NEXT

Jack McAuliffe, Who Started a Craft Beer Revolution, Dies at 80

UP NEXT

Fresno Crash Leaves One Dead After Car Submerges in Canal

UP NEXT

Lemoore Farmers Fed Up With Lack of Representation on Groundwater Agency

UP NEXT

‘Jenny from the Block’ Rescued After Camping Out by Calwa ATM

UP NEXT

Tulare Officer Injured in Crash While Trying to Save Unresponsive Infant. Child Dies at Hospital

UP NEXT

Fresno Council Candidate Rassamni Says City Is Investigating Him Amid Allegations by Arias

UP NEXT

Fresno First Responders Talk Person Down off Parking Garage Ledge

UP NEXT

Kern County Fire Issues Evacuation Warnings for Pearl Fire Near Lake Isabella

Trump Golfs in Scotland as Epstein Questions Persist

17 hours ago

Visalia Police Arrest Armed Robbery Suspect at Long John Silver’s

18 hours ago

Grand Rising Brings Sober Day Party Vibes to Fresno

18 hours ago

Jack McAuliffe, Who Started a Craft Beer Revolution, Dies at 80

18 hours ago

Fresno Crash Leaves One Dead After Car Submerges in Canal

18 hours ago

Lemoore Farmers Fed Up With Lack of Representation on Groundwater Agency

19 hours ago

‘Jenny from the Block’ Rescued After Camping Out by Calwa ATM

19 hours ago

Tulare Officer Injured in Crash While Trying to Save Unresponsive Infant. Child Dies at Hospital

1 day ago

PBS Has a Future by Leaving the Past Behind: Opinion

1 day ago

Fresno Council Candidate Rassamni Says City Is Investigating Him Amid Allegations by Arias

1 day ago

California School Board Resigns After Audit Reveals $180M in Improper Funding

The entire board of directors overseeing Highlands Community Charter and Technical Schools in Sacramento has either resigned or been removed...

15 hours ago

The entire board of Highlands Community Charter in Sacramento stepped down after a state audit found the school improperly received over $180 million and engaged in questionable spending. (Shutter
15 hours ago

California School Board Resigns After Audit Reveals $180M in Improper Funding

The NASA logo is seen at Kennedy Space Center in Cape Canaveral, Florida, U.S., April 16, 2021. (Reuters File)
17 hours ago

NASA Says 20% of Workforce to Depart Space Agency

Egypt's President Abdel Fattah al-Sisi and French President Emmanuel Macron visit a ward for Palestinian patients at El Arish Hospital, close to the border with the Gaza Strip, in Arish, Egypt April 8, 2025. Ludovic Marin/Pool via REUTERS
17 hours ago

Frustration, Gaza Alarm Drove Macron to Go It Alone on Palestine Recognition

U.S. President Donald Trump golfs at Trump Turnberry resort in Turnberry, Scotland, Britain, July 26, 2025. (Reuters/Phil Noble)
17 hours ago

Trump Golfs in Scotland as Epstein Questions Persist

Noah Robinson, 38, was arrested after allegedly robbing a Visalia Long John Silver’s at knifepoint and attempting to flee through nearby backyards with $110 in stolen cash on Friday, July 25, 2025. (Visalia PD)
18 hours ago

Visalia Police Arrest Armed Robbery Suspect at Long John Silver’s

18 hours ago

Grand Rising Brings Sober Day Party Vibes to Fresno

Craft Brewer Jack McAuliffe With Jim Koch of Samuel Adams
18 hours ago

Jack McAuliffe, Who Started a Craft Beer Revolution, Dies at 80

fresno
18 hours ago

Fresno Crash Leaves One Dead After Car Submerges in Canal

Help continue the work that gets you the news that matters most.

Search

Send this to a friend