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Politics

High-Speed Rail Dispute Chugs Toward Tallahassee

February 17, 2011 - 6:00pm

Local efforts to circumvent Gov. Rick Scott's rejection of high-speed rail funds will likely lead to a dead end, but debate over the project is creating fissures in the state's Republican Party.

Spurred on by Democratic Sen. Bill Nelson and a handful of sympathetic GOP lawmakers, the Tampa Bay Partnership and Central Florida Partnership are exploring the idea of taking the federal stimulus dollars and pushing ahead with the HSR project.

"We respect the governors commitment to fiscal responsibility ... but we can't afford to allow this opportunity to pass us by," the partnerships' two chief executives said in a joint statement this week.

"Congress will be voting to extend transportation appropriations on March 4. High-speed rail falls under this umbrella so all funding must be allocated to specific projects at that time in order for that extension to be approved," said Tampa Bay Partnership chief Stuart Rogel and Central Florida Partnership president Jacob Stuart.

Nelson, after meeting with U.S. Transportation Secretary Ray LaHood this week, suggested that a local or regional approach could allow Florida to hold onto the $2.4 billion in federal stimulus funds even without Gov. Scott's approval.

But there's a problem with that end-run. The state owns more than 90 percent of the land along the proposed high-speed corridor, according to the Florida Department of Transportation. Without state approval, neither federal nor local agencies can proceed on that property -- most of it running along Interstate 4.

Any land dispute would have to be settled in Tallahassee, where Republicans have splintered on the high-speed rail issue. The outcome will say as much about the direction of the state's GOP as the fate of high-speed rail.

"It's ultimately the governor's decision," said Scott spokesman Brian Hughes. "It's absolutely within his authority to do everything he can to protect the taxpayers."

A DEAD LETTER FROM DOCKERY

House Speaker Dean Cannon and Senate President Mike Haridopolos support Scott's rejection of federal funding, but 26 state senators -- half of them Republicans -- signed a letter this week asking LaHood to give Florida a second chance.

"In December of 2009, members of the Florida Legislature voted to create the Florida Rail Enterprise and the Florida Statewide Passenger Rail Commission," the letter stated. "The enterprise could have the ability to independently move forward with Florida's plans for high-speed rail. Please give us the time necessary."

The letter was instigated by state Sen. Paula Dockery, R-Lakeland, a longtime advocate of the high-speed rail project. Her husband, C.C. "Doc" Dockery, chaired the now-defunct Florida High-Speed Rail Commission and was a member of the state's High-Speed Rail Authority.

Other Republican senators signing on included Mike Bennett, Andy Gardiner, Mike Fasano, Dennis Jones, Jack Latvala, Stephen Wise, Greg Evers, Nancy Detert, Thad Altman, Ellyn Bogdanoff and Lizbeth Benacquisto. All but four are from Central Florida.

Dockery's role is intriguing, if not surprising, since she campaigned for Scott against fellow Republican Bill McCollum and was a leader on Scott's transition team. At one point, Dockery was considered a contender to be his lieutenant governor.

Hughes said the governor still considers Dockery "an ally and a friend."

"He welcomes her advice and looks forward to working with her on issues in the future," Hughes said. But he added that Dockery's letter would "not be a factor in the governor's absolute commitment to protect Florida's taxpayers from the potential $3 billion burden [the HSR line] represents."

Dockery did not return a call from Sunshine State News.

Like Scott, Dockery does not always adhere to conventional party lines. While she favors high-speed rail, she has been an outspoken opponent of the proposed SunRail commuter train system in Central Florida -- a venture favored by virtually every Orlando-area lawmaker.

Haridopolos declined to comment on Dockery's letter or impact on the Senate. "It's a member-driven process," Haridopolos spokesman Brian Burgess said.

But Haridopolos and Cannon have made it clear that they firmly oppose President Barack Obama's failed stimulus agenda.

"We are far better off reducing the $1.5 trillion in proposed [federal] deficit spending by this $2.4 billion than we are to build a rail project that has a questionable-at-best economic viability," Haridopolos said in a statement Friday.

RINOS IN CONGRESSIONAL DELEGATION

To complicate matters, Florida's GOP congressional delegation has also split on the high-speed rail issue.

Two Central Florida congressmen -- Dan Webster and John Mica -- favor taking federal funds for the 84-mile line that would connect Tampa and Orlando.

Webster told WDBO radio, "It's money we have. It wouldn't cost the state anything. They ought to keep at least the door open until they've seen the proposals."

Mica, who chairs the House Transportation Committee, called Scott's decision "very shortsighted." Echoing Nelson, he said he would explore involving the four affected Central Florida counties in reaching their own deal with the feds.

But Mica has sent mixed signals on the issue. Before he was for the HSR project he appeared to be against it.

"I was surprised by Rep. Mica's reaction to Scott's decision. Two days earlier at a transportation conference, he told me he saw 'eye-to-eye' with the governor," said Ken Orski a Maryland-based transportation writer.

Mica was not available to corroborate Orski's account, but the congressman had earlier criticized the Obama administration's proposal to spend an additional $53 billion on high-speed rail projects. Mica likened that proposal to doubling down on an investment with convicted ponzi schemer Bernie Madoff.

U.S. Rep. Richard Nugent wasn't so conflicted. The Brooksville Republican stated:

The fact of the matter is that the federal government is spending money it doesnt have.The presidents goal of spending $53 billion on a national high-speed rail network is the epitome of it would be nice to have spending. Were running a $1.7 trillion deficit.When we cant afford our basic obligations, we certainly dont have tens of billions in extra money for nice to have projects.

Viewed in this context, Governor Scotts decision to decline $2.4 billion in federal money for high-speed rail is clearly a necessary and responsible choice."

U.S. Rep. Dennis Ross, R-Lakeland, wants to find a middle ground in the debate.

"With federal money, comes federal strings. I do not believe in high-speed rail, paid for by the taxpayer," Ross said. As an alternative, the freshman congressman wants the governor and the Legislature to issue revenue bonds.

"Private investors, individuals, etc., would purchase the bonds and that money would finance the construction of the rail," Ross explained. "Once it was built, train operators would operate routes and charge market price, and concessions operators would operate concessions at the terminals."

Under this plan, Ross said, "The state would have no liability for damages or negligence of rail operators, the state would have no financial stake in the operation of the train sets, and would have no stake in the concessions and who sold what."

Orski discounts Ross' scenario. Saying there have beenonly "rareinstances" where transit projects were fully financed by private investors -- he cited the high-speed 'Chunnel' linking France and England as an exception -- Orskisaid:

"It is extremely doubtful that private investors would be willing to purchase suchbonds unless they were backed by thefull faith and credit of the state of Florida (i.e., guaranteed by the state in case of default).And it is equally unlikelythat Governor Scott would agree to assumesuch a risk given his opposition to assuming amuch smaller risk of operating losses.

"Atotally privately financed Tampa-to-Orlando line is a pie-in-the-sky. The only segment that could conceivably be fullyfinanced byprivate investors is the Orlando Airport to Disney World segment, where there exists a historically documented ridership demand and possibly financial participation by the Disney people," Orski said.

Meantime, tea party groups are steaming over what they perceive as backsliding by Republicans who profess to be fiscal conservatives but second-guess Scott's refusal to take Obama stimulus money.

In an ironic twist, Everett Wilkinson, who vociferously supported McCollum in the GOP gubernatorial primary against Scott, issued a "Tea Party Patriot Action Alert" calling on members to "stand with Rick."

"Please take this opportunity to support the governor and reject politics-as-usual," Wilkinson wrote.

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Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.

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