Report 2009-106 Recommendation 5 Responses
Report 2009-106: High-Speed Rail Authority: It Risks Delays or an Incomplete System Because of Inadequate Planning, Weak Oversight, and Lax Contract Management (Release Date: April 2010)
Recommendation #5 To: High-Speed Rail Authority, California
In order to plan adequately for private investment, the Authority should further specify the potential costs of planned revenue guarantees and who would pay for them.
Annual Follow-Up Agency Response From November 2011
In our AB 115 report to the Joint Legislative Budget Committee dated October 13, 2011, we presented our current funding approach which includes a projection that does not result in a need for an operating subsidy to private operators. Additionally, in our planned business model we indicate that each phase of the implementation of the system would involve private sector investment only at the point that revenue risk could be transferred and we will be able to proceed without providing a revenue guarantee or other similar mechanism to reduce the risk of the private operator(s). We believe our current approach adequately addresses the State Auditorís recommendation. (See 2011-041, p. 138)
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Agency responses received after June 2013 are posted verbatim.