California OKs funding for high-speed rail line

July 9, 2012

(AP) SACRAMENTO, Calif. – California lawmakers approved billions of dollars Friday in construction financing for the initial segment of the nation’s first dedicated high-speed rail line connecting Los Angeles and San Francisco.

The move marked a major political victory for Democratic Gov. Jerry Brown and the Obama administration. Both have promoted bullet trains as job generators and clean transportation alternatives.

“No economy can grow faster than its transportation network allows,” U.S. Transportation Secretary Ray LaHood said in a statement applauding the legislative vote. “With highways between California cities congested and airspace at a premium, Californians desperately need an alternative.”

The bill authorizes the state to begin selling $4.5 billion in voter-approved bonds that includes $2.6 billion to build an initial 130-mile stretch of the high-speed rail line in the Central Valley. That will allow the state to collect another $3.2 billion in federal funding that could have been rescinded if lawmakers failed to act Friday.

Brown pushed for the massive infrastructure project to accommodate expected growth in the nation’s most populous state, which now has 37 million people. He said the project is sorely needed to create jobs in a region with higher-than-average unemployment.

Read more:  http://www.cbsnews.com/8301-201_162-57467999/california-oks-funding-for-high-speed-rail-line/