Florida Gov. Rick Scott decided on Wednesday to reject over $2 billion in federal money that would have paid for a highly anticipated high-speed rail line between Tampa and Orlando — and the 12,000 to 24,000 jobs that were projected to be created by it. It’s a controversial move inspired by Scott’s devotion to “tea party” ideology, but one that has everyone from the White House to fellow Florida Republicans piling on him.
The project had been in the works for years, gaining support of a bipartisan group of politicians and officials, and had been near the top of the list of projects prioritized as part of the Obama administration’s nationwide push for passenger rail expansion.
Gov. Scott had been publicly lukewarm to the high-speed project and the idea of accepting funding from an administration he campaign vigorously against in his narrowly successful bid for governor. On Wednesday Scott explained his decision as the result of not being “comfortable” and that he questioned whether “this is a project we should be doing.”
Florida Gov. Rick Scott announced Wednesday that he’s rejecting $2.4 billion in federal funding for high-speed rail.
“I’m not comfortable this is a project we should be doing,” Scott said at a hastily called news conference in Tallahassee after a phone conversation with U.S. Transportation Secretary Ray LaHood.
Scott said he was not sure high-speed rail would bring taxpayers a return on their investment and he felt money would be better spent on state highway and seaport improvements.
The rail was intended to connect Tampa, Lakeland and Orlando.
That the decision was influenced by the tea party and its allies in the conservative base of the Republican Party is without question.
After running on a strong anti-government/anti-spending “tea party” platform last fall, Scott met with representatives of the movement for 30 minutes in his office before announcing that he would not accept the federal money. Scott also released his official state budget last week at a tea party event in central Florida.
Scott’s decision represents a major victory for the tea party movement after members met with Scott in his office for 30 minutes to discuss the issue and urged him to reject the rail money.
Scott said his decision was based on “three main economic realities.” First, he said, cost overruns for the project could put Florida taxpayers on the hook for an additional $3 billion.
Second, ridership and revenue projections are historically overly optimistic, he said, and would likely result in ongoing subsidies from state taxpayers.
And 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 funding.
In his letter to LaHood, Scott said, “I believe that the dollars being made available for proposed high-speed rail projects are better invested in higher-yield projects like those we have discussed in past few weeks.”
Prominent Republicans in the Florida legislature slammed Gov. Scott for walking away from the funding and noted that he may not have the authority to do so since the state has already appropriated its own funding to assist in the Tamp-to-Orlando rail project.
State Senate budget chairman J.D. Alexander said he was told of the governor’s announcement via a text message but warned that the governor doesn’t have the authority to unilaterally cancel the project.
“The Constitution doesn’t allow the governor to not-spend appropriations funds” and there is $300 million appropriated in the budget to put into development of the rail line between Orlando and Tampa, Alexander said.
Alexander said that if the Legislature puts it in the transportation budget, he expects Scott to veto it and “I don’t believe there would be the support to override a veto.” The question now is, “where do we go from here” and if the governor wants to cancel it, he will need the approval of the Legislative Budget Commission. “We’ll certainly encourage him to pay more attention to the Constitution and budgeting rules,” Alexander said.
State Sen. Jack Latvala, chairman of the Senate Transportation Committee, blasted Scott for what he said was a premature decision.
“Making this decision, at this point, on a project that could mean 12,000 to 14,000 jobs is very premature,’’ said Latvala, R-St. Petersburg. “I have been consistent in saying we ought to at least let the private companies go to bid and let it play out.
“It’s in his court and I’m very disappointed he made this decision without consulting the Legislative branch. I visited with him yesterday and I had no inkling that they were heading in this direction. It shows kind of a lack of understanding and respect for the legislative process. It’s supposed to be a collaborative process — where the governor and Legislature work together — and this is not an example of working together.”
The Legislature authorized the state to pursue federal funding for a high-speed rail project between Orlando and Tampa during a 2009 special session. Since Scott took office in January, Latvala said the signals coming from his office have been “very mixed” but there had been no warning that he was prepared to announce its rejection.
“We’ve cut off our nose to spite our face,’’ Latvala said. “To think that this money is going to go back into the federal treasury is ridiculous. The money will be going straight to California” and its proposed rail project.
Congressman John Mica, chairman of the House Transportation and Infrastructure Committe, also criticized Gov. Scott.
U.S. Rep. John Mica, R-Winter Park, chairs the House Transportation and Infrastructure Committee. In a statement he said, “I have urged the governor to reconsider going forward and allow the private sector to assume the risk and any future costs for the project. I made this appeal to the governor this morning.”
Responding to Scott’s move, the White House said it was “an unfortunate decision” and that it would simply send the $2.4 billion earmarked for Florida to other states for use on other high-speed rail projects.
In a bit of political hardball, the Obama administration on Wednesday said it would send $2.4 billion in stimulus money to other states should Florida Gov. Rick Scott not back down on his rejection of the federal government’s national high-speed rail project.
Speaking just hours after Scott announced he was abandoning the project due to cost concerns for the state, White House Press Secretary Jay Carney relayed the president’s preparedness to simply send the allocated money to other locales rather than, say, use it to lower the federal deficit.
“We think that is an unfortunate decision,” Carney said. “This goes right to the essence of what we have been talking about here. There has been a lot of bipartisan support for the need to create the kind of modern infrastructure in this country that will enable us to compete. High speed rail is very much a part of that and we will make sure that that money is used elsewhere to advance the infrastructure and innovation agenda that is essential for economic growth.
“We believe that the money that is allocated for high-speed rail as part of the Recovery Act is essential to the infrastructure agenda that this president has,” Carney added later. “Again, it is part of the president’s priority and it is essential to us to build an infrastructure that allows us to compete in the 21st Century.”
And on cue, other states are already jumping at the chance to appropriate the billions that Florida turned down. New York’s two U.S. senators have already contacted the Obasma administration seeking to redirect the federal money to the Empire State.
Its amazing that the Republicans are so opposed to anything that will help put Americans back to work. They clearly do not care about the people. Why dont the citizens of Florida recall this guy in a special election?
They don’t call it Floriduh for nothing
but I am sooo happy that a blue state like California will make out due to Republican stupidity. Is there any other federal money Scott can turn down? We can use it here in Massachusetts!!
Well, wouldn’t this project put a whole lot of people to work??? These republicans are not interested in creating jobs, they hope jobs are not created so they can stand a better chance of winning the white house. Republicans are a poor excuse for patriotism and even a poorer excuse for an American!
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Please tally the votes for recall before this guy does any more damage.
Voted for him and I will support a recall fully
let’s start it
After reading this article and the replies after it It’s not scott that needs to pull his head out it is his constituents and the Obama administration. People we are broke, I know of no other way to put but that ‘ OUR COUNTRY IS BROKE’. Most of our states are broke or running very deeply in the red. I think that Gov. Scott is the only one that is using his head and caring about his state and it’s people. Can you afford to pay the overtures of 2 to 3 billion we all know it will cost to build it? Sure there will be jobs for a while until it is built then most of those jobs are gone then what? Oh I know we hope the government comes up with more ways ato throw away money that we don’t have. Open your eyes I was raised if you don’t have it you don’t buy it.