High-Speed Rail Free Money - KMSP-TV

Point Of View

High-Speed Rail Free Money

Posted: Updated:

If you are one of the five construction contractors bidding on California's High-Speed Rail project, you won the lottery.

And you didn't even have to buy a ticket.

Two million dollars will be granted to each losing company, simply for bidding.

That's $8 million dollars from the taxpayers, on a project which is short billions.

I'd like to hear your Point of View. Send me an email at POV@fox11.com

The High-Speed Rail Authority says this type of payout, they call it a stipend, is not unusual for large-scale projects. And they say it encourages competitive bidding.

In reality, it's an uncommon practice and this is one of the highest loser payouts on record.

A new toll road for the 91 freeway in Southern California, also has a loser-stipend attached to it costs, but it's not even a third of what the rail authority is offering.

And in its own defense, the rail authority said California and several other states pay stipends too. But even the largest amount we could find other states paying out was half of what The Rail Authority is providing.

So why would the rail authority give $8 million dollars to the losing bidders?

Were they worried they wouldn't get anyone to bid? Are they that insecure about their plan?

The chance of winning hundreds of millions should be enough to encourage proper bidding.

This kind of reckless spending raises questions about the management of the entire project.

If they're subsidizing the losing bidders with millions then they may already be in violation of the spirit of the original law's intent, which clearly states the project must function without subsidies.

This bidding fiasco not only looks bad, but it raises a red flag that says: Stop!

Stop this project.

It's unpopular, it's underfunded and as this bidding process reveals, they're already wasting money before picking up the first shovel.

Thanks for listening.

I'd like to hear your Point of View.

What do you think? We want to hear from you on this P.O.V. segment. Share your thoughts in the comments section below or email me directly at POV@fox11.com.

Kevin Hale,

Vice President and General Manager
KTTV-TV, FOX 11 News

The views expressed are not necessarily those of the station or its employees.



  • FeaturesMore>>

  • Wednesday's Child

    Samajai Holds A Strong Spirit For A New, Loving Family

    Samajai Holds A Strong Spirit For A New, Loving Family

    Thursday, August 21 2014 1:00 AM EDT2014-08-21 05:00:09 GMT
    This week's Wednesday's Child is another sample of just how strong the human spirit is even in the earliest stages. Samajai (2012) has been negotiating many medical issues since his beginning, including Intrauterine Growth Restriction, Microcephaly, Goldenhar Syndrome, an ear anomaly, hypospadius, a ventricular septal defect, a cleft palate and a rib/sternum anomaly.
    This week's Wednesday's Child is another sample of just how strong the human spirit is even in the earliest stages. Samajai (2012) has been negotiating many medical issues since his beginning, including Intrauterine Growth Restriction, Microcephaly, Goldenhar Syndrome, an ear anomaly, hypospadius, a ventricular septal defect, a cleft palate and a rib/sternum anomaly.
  • Wednesday's Child

    Joseph Aims High In Hopes Of A Forever Home

    Joseph Aims High In Hopes Of A Forever Home

    Thursday, August 14 2014 1:00 AM EDT2014-08-14 05:00:16 GMT
    This week we want to make a federal case for Joseph (1998) finding a forever family, so we obtained the necessary clearances to accompany Joseph to the Los Angeles Division of the Federal Bureau of Investigation (FBI). And during our friendly investigation, we found Joseph to be a dynamic teen with a good bit of focus and determination for someone his age.
    This week we want to make a federal case for Joseph (1998) finding a forever family, so we obtained the necessary clearances to accompany Joseph to the Los Angeles Division of the Federal Bureau of Investigation (FBI). And during our friendly investigation, we found Joseph to be a dynamic teen with a good bit of focus and determination for someone his age.
  • Mexican American Boxing In LA

    Mexican American Boxing In LA

    Mexican American Boxing In LA

    Sunday, August 10 2014 6:00 AM EDT2014-08-10 10:00:16 GMT
    Los Angeles used to be a major venue for championship boxing. From the 1930s through the 1970s, there were prize fights nearly every night in metropolitan Los Angeles, primarily at the Olympic Auditorium in Downtown Los Angeles.
    Los Angeles used to be a major venue for championship boxing. From the 1930s through the 1970s, there were prize fights nearly every night in metropolitan Los Angeles, primarily at the Olympic Auditorium in Downtown Los Angeles.
  • FOX 11 News Editorial VideoPoint Of ViewMore>>

  • Point of View

    California Has Highest Gas Tax In The Nation

    California Has Highest Gas Tax In The Nation

    Friday, August 8 2014 7:31 PM EDT2014-08-08 23:31:51 GMT
    California motorists are burdened with the highest gas tax in the nation: 71 cents for every gallon of gas purchased. If that was not enough, along comes AB-32 that mandates that vehicle fuel production will be, in effect, taxed beginning in 2015.
    California motorists are burdened with the highest gas tax in the nation: 71 cents for every gallon of gas purchased. If that was not enough, along comes AB-32 that mandates that vehicle fuel production will be, in effect, taxed beginning in 2015.

  • Point of View

    Teacher Tenure Statutes

    Teacher Tenure Statutes

    Sunday, July 13 2014 5:02 PM EDT2014-07-13 21:02:19 GMT
    Recently, Los Angeles Superior Court Judge Rolf M. Treu ruled that teacher tenure statutes -- violate the California state constitution. In the landmark case "Vergara v. California," Judge Treu held that tenure makes it almost impossible to fire incompetent teachers.
    Recently, Los Angeles Superior Court Judge Rolf M. Treu ruled that teacher tenure statutes -- violate the California state constitution. In the landmark case "Vergara v. California," Judge Treu held that tenure makes it almost impossible to fire incompetent teachers.

  • Point of View

    Keeping Our Movie Industry In California

    Keeping Our Movie Industry In California

    Friday, June 6 2014 2:13 PM EDT2014-06-06 18:13:38 GMT
    Runaway movie production is out of control. KTTV Vice President and General Manager Kevin Hale looks at what needs to be done bring the movie industry back to Los Angeles, in this POV.

    Runaway movie production is out of control. KTTV Vice President and General Manager Kevin Hale looks at what needs to be done bring the movie industry back to Los Angeles, in this POV.


Powered by WorldNow

KMSP-TV
11358 Viking Drive
Eden Prairie, MN 55344

Phone: (952) 944-9999
Fax: (952) 942-0455

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices