Florida Governor Rick Scott derails the Obama-GE high-speed spending spree:
(NPR) In a rebuke to the Obama administration, Florida Gov. Rick Scott is rejecting $2.4 billion in federal money for a proposed high-speed train line between Orlando and Tampa — the third state to turn up its nose at government funds.
Former Gov. Charlie Crist had lobbied hard to get a share of the $8 billion that the Obama administration set aside for high-speed rail projects. The state got the second-largest piece of the pie, behind California, and its share grew to $2.4 billion after new Republican governors in Wisconsin and Ohio rejected the money.
But Scott said cost overruns could put his state on the hook for another $3 billion. Once completed, there’s also a good chance ridership won’t pay for the operating cost, meaning the state would have to pump even more money into the line each year, he said.
The truth is that this project would be far too costly to taxpayers and I believe the risk far outweighs the benefits,”‘ the Republican governor, who took office last month, said in a press release.
He also said if the project failed, the state would have to return the money to the federal government. Scott said he informed U.S. Transportation Secretary Ray LaHood of his decision earlier Wednesday.
“My background is in business, not politics. But you don’t have to be an economics expert to understand that if you spend more money than you take in, your business will fail,” Scott said.
“Higher taxes and more government spending is a recipe for disaster. Government has become addicted to spending beyond its means and we cannot continue this flawed policy,” Scott said.
Bankrupt GE to spend $30 billion as Obama administration continues to fund GE: HERE
Obama seeks $53 billion to fund ‘secretly’ bailed out GE for high-speed rail: HERE
One chart to rule them all: Obama’s 2012 ‘budget’ proposal: HERE