High-Speed Rail Free Money - Fox 2 News Headlines

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

    Jesus Paces Himself With Wishes For Loving Parents

    Jesus Paces Himself With Wishes For Loving Parents

    Thursday, September 11 2014 1:00 AM EDT2014-09-11 05:00:09 GMT
    Llamas, and roosters and boars! Oh, my! This week on Wednesday's Child meet a sweet little boy named Jesus (2008) as he encounters the tamer side of the animal kingdom during a day at the Gentle Barn in Santa Clarita, California.
    Llamas, and roosters and boars! Oh, my! This week on Wednesday's Child meet a sweet little boy named Jesus (2008) as he encounters the tamer side of the animal kingdom during a day at the Gentle Barn in Santa Clarita, California.
  • Wednesday's Child

    Marqual Styles It Up For A Hopeful, Loving Family

    Marqual Styles It Up For A Hopeful, Loving Family

    Thursday, September 4 2014 1:00 AM EDT2014-09-04 05:00:13 GMT
    Meet Marqual (2000) – a well-mannered youth with an infectious smile – as we take a sneak peek at how he worked the room at Doris Bergman's 5th Annual Pre-Emmy Style Lounge Party at Fig Olive in West Hollywood.
    Meet Marqual (2000) – a well-mannered youth with an infectious smile – as we take a sneak peek at how he worked the room at Doris Bergman's 5th Annual Pre-Emmy Style Lounge Party at Fig Olive in West Hollywood.
  • Midday Sunday

    LA City Council Member Tom LaBonge

    LA City Council Member Tom LaBonge

    Sunday, August 31 2014 12:00 PM EDT2014-08-31 16:00:21 GMT
    Today's guest is Tom LaBonge, the Los Angeles City Council member representing Council District 4.  Mr. LaBonge is a native Angeleno, born and raised in the Silver Lake District. 
    Today's guest is Tom LaBonge, the Los Angeles City Council member representing Council District 4.  Mr. LaBonge is a native Angeleno, born and raised in the Silver Lake District. 
  • 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

WJBK-TV | Fox 2
16550 West Nine Mile Rd.
Southfield, MI 48075

Main Station: (248) 557-2000
Newsroom: (248) 552-5103

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