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According to a recent article in the New York Times, the proponents of the CHSRP are pushing on in spite of significant headwinds.  Amongst them is a revised estimated cost of the project, which now stands at $98 billion before financing charges. This is up from an original estimate of $38 billion, according to a Government Accountability Office report. The estimated completion date for the total project, which will consist of approximately 520 miles of rail line, is 2033.  Assuming the project is financed for 30 years at an average rate of 4%, compounded monthly, which will be difficult to attain, the project will cost approximately $167 billion.  Given California's low bond rating (A- on GO Bonds and BBB+ on the state's appropriation-backed lease revenue bonds), the project sponsors will be lucky to obtain financing at 4%, unless they can attract a significant amount of private capital, which they have been unsuccessful in doing.  In fact, outside of the initial commitment from the California voters for $9 billion in state bonds, as well as approximately $3 billion in ARRA funds, the sources for the monies required to complete the project is unclear.  The latest estimates claim that the running time between LAX and SFO, presumably for the fastest trains, will be 2 hours and 38 minutes.  This assumes relatively high speed running in the congested suburbs of LAX and SFO.  The current average flying time from LAX to SFO is 1 hour and 15 minutes. The project sponsors appear to be comparing the train time to the estimated driving time.  No comparison was offered between the train time and the flying time, which is on average 1 hour and 23 minutes slower than flying. The project is being challenged by some legislators, as well as county commissioners and city council persons, who believe that it will be an ongoing financial albatross.  In  a May 2011 report the proponents acknowledged that the operating deficit for the project could be as much as $1 billion per year, which is nearly equal to Amtrak's annual operating shortfall. The project is also being challenged by farmers in the Valley, where the first miles of track will be laid. Justification for the project is predicated on the premise that the CHSRP is a better alternative than expanding the highway and airway systems. The proponents also claim that the project will create more than 100,000 jobs, which certainly has a strong political appeal in the current environment.
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