Stunning high-speed rail proponents, Gov. Rick Scott turned down federal funding for a proposed Tampa-Orlando train project that he called a rolling "boondoggle."
Speaking to U.S. Transportation Secretary Ray LaHood on Wednesday morning, Scott rejected the rail venture as fiscally untenable. He cited questionable ridership projections and the likelihood that cost overruns would dwarf the $2.4 billion Washington earmarked for the 84-mile line.
"Historical data show capital cost overruns are pervasive in nine out of 10 high-speed rail projects and that two-thirds of those projects inflated ridership projections by an average of 65 percent of actual patronage," Scott said.
Skeptical of projections that 3.07 million people would ride the Tampa-Orlando train annually, the governorcompared that number to ridership on the Northeast Corridor's high-speed Amtrak line.
"Keep in mind that Amtraks Acela train in Washington, D.C., Boston, Philadelphia, New York and Baltimore only had 3.2 million riders in 2010.That markets population is eight times the size of the Tampa/Orlando market," Scott said.
Estimating that ongoing state subsidies could run $300 million to $575 million over 10 years, Scott said Florida could not afford to take the financial risk.
If the HSR venture became too costly and was shut down, Tallahassee would have to return the $2.4 billion in federal funding.
High-speed rail advocates -- ranging from liberal political groups to House Transportation Chairman John Mica, R-Fla. -- immediately assailed the governor.
Progress Florida said Scott's decision was driven by a desire "to make President Obama look bad."
Mica called it "a huge setback for the state of Florida."
"Im appalled by Gov. Scotts shortsighted thinking and his decision to choose politics and ideology over job creation for Florida," said Democratic state Rep. Hazelle Rogers of Lauderdale Lakes.
But Scott called the train's job-generating claims, like its ridership projections, over-hyped. Skeptics have even questioned the viability of the Tampa-Orlando run as a high-speed corridor. With four planned stops along the way, one pundit dismissed it as a "glorified Disney shuttle."
Scott said his decision was based on business, not politics.
"President Obamas high-speed rail program is not the answer to Floridas economic recovery.We must make investments in areas where we will get a return for the shareholders -- Floridas taxpayers," the governor said.
"Rather than investing in a high-risk rail project, we should be focusing on improving our ports, rail and highway infrastructure to be in a position to attract the increased shipping that will result when the Panama Canal is expanded, when the free-trade agreements with Colombia and Panama are ratified, and with the expansion of the economies of Central and South America," he said.
Quoting from a recent Chamber of Commerce study, Scott estimated that garnering a larger share of containerized cargo and expanding Florida's presence as a global hub for trade and investment would create 143,000 jobs.
"It is absolutely critical that we make smart investments with taxpayer dollars, and I believe our state will be better served by spending these funds on projects that will benefit Florida and not turn into a spending boondoggle," said Scott, who has pledged to facilitate the creation of700,000 jobs over the next seven years.
Republican governors in Ohio and Wisconsin previously turned down federal funding for high-speed rail projects in those states. And opposition to the costly projects is mounting across the country, even as the Obama administration has pledged to spend $53 billion more on HSR projects.
Questioning overall federal spending, Scott drew a stark contrast between his budget-cutting agenda and the Keynesian expansionism at the White House.
"As you know, my background is in business, not politics. But you dont have to be an economics expert to understand that if you spend more money than you take in, your business will fail," he said.
Tea groups around Florida hailed Scott's decision to halt the train.
"This was the right call for the future of our state and for our children," said Robin Stublen, a tea party activist in Punta Gorda.
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Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.
