The California High Speed Rail Authority has hit a snag in its funding for the project that will link Northern and Southern California through Silicon Valley. However, a local board member is not panicking.
According to the Palo Alto Weekly, the project has more than $4 million in unpaid bills. Rod Diridon says delays will result in major cost increases, perhaps as much as $2 billion a year.
The authority is hoping for a state loan to keep engineering work on track. Some contractors have stopped engineering work because of the shortfall, while others continue working on the promise to paid when financing is in place.
In addition to the loan, the rail authority is hoping to receive a piece of the Federal Stimulus package that was recently passed.
