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By Daniel Baxter |
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February 17, 2011 - U.S. Transportation Secretary Ray
LaHood on Wednesday made the following statement
regarding Florida Governor Rick Scott’s decision to
decline high-speed rail dollars ($2.4 Billions). U.S. Transportation
Secretary Ray LaHood: “We are extremely disappointed by
Governor Rick Scott’s decision to walk away from the job
creating and economic development benefits of high speed
rail in
“We worked with the governor to make sure we eliminated
all financial risk for the state, instead requiring
private businesses competing for the project to assume
cost overruns and operating expenses.
“It is projects like these that will help
“Nevertheless, there is overwhelming demand for high
speed rail in other states that are enthusiastic to
receive |
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The
Governors office was called for a comment. However their
response was “see our press release.” When questioned on
specifics the office staff stated “wait a minute” she then began
reading the press release. When questioned again for specifics,
the office staff hung the phone up.
Richard
Lynn "Rick" Scott (born December 1, 1952) is a politician who is
the 45th and current Governor of the
He was
forced to resign as Chief Executive of Columbia/HCA in 1997 amid
a scandal over the company's business and Medicare billing
practices. The federal government fined Columbia/HCA $1.7
Billion for Medicare and Medicaid fraud that took place under
Rick Scott's watch as CEO. That sum, which ultimately led to
Scott's ouster, set a record for the largest fine of its kind in
history. |
It was reported
last July, Scott spent $5 million of his own money to start
Conservatives for Patients' Rights, an organization aimed at defeating
Democrats' health care reform legislation. Ads put out by Scott's group
warned viewers that the new healthcare legislation "could put a
bureaucrat in charge of your medical decisions, not you."
Governor Scott
states in his press release he wants to grow
Scott has proposed
eliminating 1,690 jobs from the Department of Corrections ($82 million)
when crime has reached an all time high for the state of
The Miami Herald
notes that despite these drastic reductions, Scott has budgeted for
increased personnel and salaries in his own executive office. Scott has
also sought a federal waiver to transfer
Below is the
Governors press release. After a carful review of the governor’s press
release there are no clear nor sound reasoning for rejecting the feds
offer to build high speed rail in Florida. The press release sounds more like
something Donald Rumsfeld would have said. You know:
“There are known
knowns; there are things we know we know. We also know there are known
unknowns; that is to say we know there are some things we do not know.
But there are also unknown unknowns – the ones we don't know we don't
know.” Maybe the governor will amend his press release into something
that is more coherent.
“After thoughtful
consideration, Governor Rick Scott informed U.S. Transportation
Secretary Ray LaHood of the state’s decision to reject President Obama’s
As you know, I was
elected to get Floridians back to work and to change the way government
does business in our state. I am committed to making good on those
promises.
“Recently, I sent
a budget proposal to the legislature that reduces the size and scope of
government; reduces the costs of that government and passes those cost
savings on to taxpayers so that we can create new jobs and turn
“I believe when
you reduce government’s reach and hold that government accountable, you
create an environment where the economy can flourish. When you reduce
taxes and put that money back in the hands of hardworking Floridians and
“As you know, 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.
Unfortunately, politicians haven’t always seemed to grasp that same
principle.
“In fact, the
Obama administration just announced a $3.73 trillion budget that
includes the largest budget deficit in our nation’s history ($1.65
trillion). The president’s budget includes $1.6 trillion in higher
taxes. Those higher taxes will impact Floridians and our competitiveness
worldwide. We cannot expect individuals to build businesses in
“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.
“Let us never
forget, whether it is
“Moments ago I
spoke with U.S. Transportation Secretary Ray LaHood to inform him of my
decision. I appreciate the Secretary’s efforts to work with us and I
look forward to working with him in the future. My decision to reject
the project comes down to three main economic realities:
Capital cost
overruns from the project could put
“If the project
becomes too costly for taxpayers and is shut down, the state would have
to return the $2.4 billion in federal funds to D.C. The truth is that
this project would be far too costly to taxpayers and I believe the risk
far outweighs the benefits.
Historical data
shows capital cost overruns are pervasive in 9 out of 10 high speed rail
projects and that 2/3 of those projects inflated ridership projections
by an average of 65 percent of actual patronage.
“It is projected
that 3.07 million people will use the train annually.
Keep in mind that Amtrak’s Acela train in
“President Obama’s
high-speed rail program is not the answer to
“Rather than
investing in a high-risk rail project, we should be focusing on
improving our ports, rail and highway infrastructure to be in a position
to attract the increased shipping that will result when the Panama Canal
is expanded when the free trade agreements with Colombia and Panama are
ratified and with the expansion of the economies of Central and South
America. |
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