$68 Billion State Project Amid $16 Billion Deficit

The plans for the high-speed railway to be built through Central Valley, California has been one of the most controversial business solutions in the state to date. The project is planned to absorb $68 billion in State taxpayer funds with an expected operational date 8 years from now. The railway is to extend from Los Angeles, run up through Palm Spring and Bakersfield, then fork one way to San Francisco and another to Sacramento just as it exits Northern Central Valley.

This comes at a time when California is already facing serious economic times with a $16 billion state deficit where financial analysts claim Governor Jerry Brown's endorsed proposition 30 greatly helps this reduction by increasing state taxes. California is known to have the worst business climate in the United States because of its high cost-of-living, which can be largely attributed to the amount of taxes.

Judge Timothy Frawley denied an injunction filed by farmers of Central Valley this passed week "without ruling on the merits of the case." The farmers claimed that the California High-Speed Rail Authority (CHSRA) "did not thoroughly weigh the damages this project would cause." The judge claimed that the CHSRA clearly outlines their planned efforts to maintain standards in order to comply with the "rigorous environment law."

This is not the end of this legal battle as the case is scheduled for a hearing concerning the merits of the concern in Spring 2013.