Report: Taxpayers face $3.6 billion cost overrun for high-speed rail’s Valley section

Costs for the high-speed rail project through the central San Joaquin Valley could be up to $3.6 billion more than estimated, according to an analysis by a federal agency that has been a supporter of California’s bullet train initiative.

The Los Angeles Times reported it had obtained a confidential report by the Federal Railroad Administration that said the 118-mile section from Shafter to Merced could cost taxpayers $9.5 billion to $10 billion, well over the original budget of $6.4 billion.

The federal agency cites delays in environmental planning and in processing invoices for grants, along with setbacks in efforts to acquire property.

The report was presented to California High-Speed Rail Authority Chairman Dan Richard in Washington, D.C., on Dec. 1, according to the Times.

The Federal Railroad Administration has financially supported the high-speed rail project, providing $3.5 billion in two grants for the Valley segment.

Construction of portions of the Valley stretch began in 2014. The federal analysis estimates the track won’t be ready until 2024.

This story was originally published January 13, 2017 at 2:37 PM with the headline "Report: Taxpayers face $3.6 billion cost overrun for high-speed rail’s Valley section."