Gov. Scott Turns Down Tampa-Orlando High-Speed Rail Funding

Gov. Rick Scott on Wednesday told U.S. Transportation Secretary Ray LaHood that Florida is rejecting the $2.4 billion in federal funding for the Tampa-Orlando high-speed rail project.

Scott wrote that his decision to reject the project came down to "three main economic realities":

"First -- capital cost overruns from the project could put Florida taxpayers on the hook for an additional $3 billion.

"Second -- ridership and revenue projections are historically overly optimistic and would likely result in ongoing subsidies that state taxpayers would have to incur (from $300 million to $575 million over 10 years). Note: The state subsidizes Tri-Rail $34.6 million a year while passenger revenues cover only $10.4 million of the $64 million annual operating budget.

"Finally -- if the project becomes too costly for taxpayers and is shut down, the state would have to return the $2.4 billion in federal funds to D.C."

Full story upcoming.