Taxpayers not Play Money will Pay for Florida High Speed Rail Cost Overruns

The bottom line thus comes down to three propositions.

1. It is naïve to believe that the Florida taxpayer obligation can be held to $280 million.

2. No rational private builder/operator will be prepared to guarantee the level of cost escalation that could occur on the project. Extraordinary cost escalation would be the responsibility of Florida taxpayers and Florida taxpayers alone.

3. Operating subsidies could be necessary. Again no rational private builder/operator will be prepared to continue operations for 20 years if ongoing operating losses are encountered. This would again mean that the bill must be passed to the funders of last resort, the taxpayers of Florida.

The open-ended risk that Florida taxpayers could face beyond the $280 million, is the fundamental issue Governor Rick Scott should consider as he decides the fate of this expensive project.

More at… http://reason.org/news/show/florida-taxpayers-ultimately-respon

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