(Andrea Bernstein, Transportation Nation) When I was in Tampa before last November's election, I met a man named Sadiqa Muqaddam. Muqaddam told me he'd found his first job as an iron worker building ships in Pascagoula Mississippi. "You know," he told me, "this is what I went to school for. When I was coming up, I was taught by my people, the only way for you to have something in America, is for education."
For half a century, Muqaddam said, there was more work than he could handle. "One day I was going all over the state of Florida. I was working out of Fort Lauderdale, Orlando, everywhere, I was everywhere, you know? And now, when I look around, there’s no jobs. There’s no jobs.” In the last year, Muqaddam lost his home. “I’m renting, now I’m back renting. Before I used to own. I’m used to walking in my three bedroom house, two cars, my little Chihuahua. I don’t have that no more. Even my dog died. Lost my cars, everything.”
But there was one thing that Muqaddam was thinking about -- a bullet train from Tampa to Orlando. "That right there would give me work. I fall in that category, of messing with iron, steel, whatever." But there will be no high speed rail line in Florida.
Saying "the risk far outweighs the benefits," Florida Governor Rick Scott, a Republican elected last November, called U.S. Transportation Secretary Ray LaHood Wednesday morning. Scott said he would be rejecting $2.4 billion in federal funds for high speed rail. This makes him the third Republican Governor to do so, after Scott Walker in Wisconsin and John Kasich in Ohio. But those projects were far less significant than the Florida plan, which was to be the first fully functioning true high-speed rail anywhere in the Americas.
This was to be a marquee project for the Obama administration, so important that the President announced his high speed rail program in January 2010. It was going to stop at Disneyworld -- something that cheered planners, who figured happy tourists would ride the high speed rail, and then carry its banner back to their home districts.
The Florida project had all the land it needed along the I-4 corridor. It had almost all the funding. But it did not have the political support of Republican Governor Rick Scott, and in the end, that's what mattered. Scott said Wednesday:
- "The truth is that this project would be far too costly to taxpayers and I believe the risk far outweighs the benefits."
- "Historical data shows [sic] capital cost overruns are pervasive in nine out of 10 high speed rail projects and that two-thirds of those projects inflated ridership projections by an average of 65 percent of actual patronage.
- "It is projected that 3.07 million people will use the train annually. Keep in mind that Amtrak’s Acela train in Washington, D.C., Boston, Philadelphia, New York and Baltimore only had 3.2 million riders in 2010. And that market’s population is eight times the size of the Tampa/Orlando market.
- "President Obama’s high-speed rail program is not the answer to Florida’s economic recovery."
Scott's announcement comes just a week after Vice President Joe Biden traveled to Philadelphia to announce an Administration push for $53 billion for high speed rail funding over the next six years. President Barack Obama has made high speed rail a signature initiative of his administration. But his goal, announced with some fanfare in his State of the Union address last month, to link 80 percent of Americans to high speed rail by 2036, has suffered a significant setback with the Florida cancellation.
Neither the President's nor the Vice President's office would comment on the political ramifications of Scott's action, instead referring us to Secretary of Transportation Ray LaHood's statement:
“We are extremely disappointed by Governor Rick Scott’s decision to walk away from the job creating and economic development benefits of high speed rail in Florida. We worked with the governor to make sure we eliminated all financial risk for the state, instead requiring private businesses competing for the project to assume cost overruns and operating expenses. It is projects like these that will help America out-build our global competitors and lay the foundation needed to win the future. This project could have supported thousands of good-paying jobs for Floridians and helped grow Florida businesses, all while alleviating congestion on Florida’s highways. Nevertheless, there is overwhelming demand for high speed rail in other states that are enthusiastic to receive Florida’s funding and the economic benefits it can deliver, such as manufacturing and construction jobs, as well as private development along its corridors.”
But Petra Todorovich, the head of America 2050, and a general optimist about the future of high speed rail in the U.S., isn't so sure. "The funds will be distributed," she noted (Florida itself had been a beneficiary when newly-elected Wisconsin Governor Scott Walker sent back his state's high speed rail money), most likely to California, which already has some $12 billion in funding for its San Francisco to L.A. high speed rail.
But, she said in a phone interview, "It becomes much trickier now. The next project on line is California. It becomes much larger, much more complicated, much farther away. This could set high speed rail back years, even decades."
In a poll released earlier this week, the Rockefeller Foundation (full disclosure, they support Transportation Nation) found that 71 percent of Americans agreed that "building a high speed rail system in the U.S. will be a benefit to travelers and to the U.S. economy." Sixty-seven percent of independents, 56 percent of Republicans and 52 percent of tea party affiliates agreed.
But that doesn't mean Scott and other Republican governors haven't tapped into unease about how to pay for big programs like this, or what seems to weigh heavily on voters minds: whether the government should be spending at all on big projects just now.
New Jersey Governor Chris Christie was the first to curtail a big infrastructure project, when last October he sent three billion dollars back to the federal government that was to have been spent on a transit tunnel under the Hudson River. It would have been the largest transit project in the nation. Christie said NJ's portion of the bill -- another 2.7 billion --- could run too high, with cost overruns
Gov Christie, whose name is widely bandied about as a GOP presidential candidate, either in 2012, or 2016 is repeating his wariness of spending on big infrastructure projects like a mantra, and each time he does so, he becomes more full-throated (video) "I look at what is happening in Washington DC right now and I'm worried," Christie told the American Enterprise Institute Wednesday.
He continued "[The President] says the big things are high speed rail. The big things are high speed internet access for almost 80 percent of America, or something, by some date. A million electric cars by some date. Ladies and gentlemen, that is the candy of American politics.
"Those are not the big things, because let me guarantee you something: if we don't fix the real big things there's going to be no electric cars on the road. There's going to be no high speed internet access -- or if there is you're not going to be able to afford to get on it. We're not going to be able to care about the niceties of life, the 'investments' that Washington wants to continue to make."
"This really was a world class high speed rail system," lamented Petra Todorvich, of Building America's Future. "It defies logic why a governor would kill a project like this -- private investors were just chomping at the bit. If the concerns were overruns, those questions could have been answered," she said. "A deal could have been structured where the private sector took the risk."
Private sector firms certainly were coming forward, spending big money on lobbying campaigns. Everyone wanted to be able to build the first high-speed rail line in America.
In a sit-down interview in his headquarters in New York's Empire State Building, Mike McNally, CEO of Skanska USA told me that Skanska was dying to take over big projects like high speed rail in Florida. But he was worried about the signals some Governors are sending by canceling big projects after they began. "The private sector can't, we don't operate that way. We're here to do what the governments -- they're our customers -- we want to do what they want to do. We need to know what they want to do and these are not short term decisions, these are long term commitments. You just can't keep changing every two fears or nothing's going to happen.
Even Republicans who've expressed reservations about the Tampa to Orlando line (it' was short, it had many stops, neither Tampa nor Orlando has much of a real downtown or a transit system to shuttle passengers to high speed rail) like John Mica, the Chair of the House Transportation Committee expressed regret at Scott's decision.
"I am deeply disappointed in the decision to not move forward with the Orlando to Tampa passenger rail project," Mica said in a statement. "This is a huge setback for the state of Florida, our transportation, economic development, and important tourism industry.''
Politicians from other states are already putting their hats in the ring to collect the money Florida just turned away. U.S. Senator Charles Schumer of New York was one of them. He said, "Florida’s loss should be New York’s gain. Other states may not be ready to unlock the potential of high speed rail, but it is a top priority for upstate New York. We can put these funds to use in a way that gets the best bang for the buck. The administration should redirect these funds to New York as quickly as possible.”
But the sentiment of doubt about paying more taxes for anything remains real, and widespread. Even people like unemployed iron worker Muqaddam have hesitations. When I went to Florida last fall, I was there to investigate how voters felt about a sales tax to fund a local light rail, another big transportation project. I asked Muqaddam about that. Initially, he was pretty sure he was against it. "We don’t have -- It’s just like you’re taking, you know, we ain’t got. And then the little bit we do got, you’re taking, you know?”
A sentiment Rick Scott is speaking to.
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