Public, private sources could fund Calif. high-speed trains

Funding for the construction of California's high-speed train system will likely come from a combination of private and public funding sources, according to a preliminary analysis presented to the California High-Speed Rail Authority Board at its monthly public meeting. The initial evaluation was prepared jointly by the Infrastructure Management Group Inc. and Lehman Brothers. Private sector opportunities include revenue bonds, equity investments, joint-development of multi-modal stations, vendor financing and operations, as well as design-build contracts. As for state funding, the analysis concluded that the state's approval of the $9.95 billion High-Speed Rail Bond does not exceed Gov. Schwarzenegger’s administration's targeted debt service to General Fund ratio of 6.5%. The bond is currently scheduled for voter consideration on the November 2008 ballot. New strategies introduced in the analysis included utilizing regional strategic partnerships for urban station development and operations, and utilizing the project's environmental benefits for funding, such as a carbon credit cap and trade system.