California's fast train to...

Imagine you see an ad in the newspaper for a very fast, shiny new sports car at a low, low price. Tempted, you grab your checkbook and rush to the dealership, where you agree to buy this dream car. As soon as you sign the contract, the sales manager locks the doors and tells you the cost is three times higher than the advertised price, and you will not be allowed to leave until you agree to pay. Not only would you feel cheated, you would also be the victim of fraud, robbery, false imprisonment and probably a few more felonies. Well, this is exactly what is happening to California taxpayers, who are being forced to buy a fast train. In 2008, voters narrowly approved a $10 billion down payment on the construction of a high-speed rail network between the Bay Area and Anaheim that promoters said would cost $33.6 billion. A year later, the High Speed Rail Authority, overseeing the project, said the train would cost $42.6 billion. Now, they're estimating it will cost $98.5 billion, nearly three times the original estimate. What's worse is they're saying, because we agreed to buy the train at $33.6 billion, we're obligated to pay the entire $98.5 billion. To put this in perspective, California's entire 2010-11 General Fund budget was about $91.5 billion, $7 billion cheaper than the train...more