Outgoing Wisconsin governor Jim Doyle (D) and Obama Transportation Secretary Ray LaHood have teamed to poison the fiscal health of Wisconsin for incoming governor Scott Walker (R) with last-minute contracts on Oct. 27 and Oct. 31 worth $758 million.
Walker wants to use that money, plus a previously committed $52 million, for roads instead of high-speed rail. LaHood said that the $810 million in high-speed-rail funds cannot be used for roads, but would instead go to high-speed-rail projects in other states. Doyle says the cancellation could cost the state $98 million and lead to halt the creation of 412 jobs.
In addition to the short-term cost, however, Walker is concerned about the operating subsidies needed for the planned rail line.
Even with federal stimulus funds picking up the full construction cost of the line, Walker has said he doesn’t want the state to pay $7.5 million a year in operating costs. A state transportation official has said federal aid could cover as much as 90% of that amount, as it does with the Hiawatha. But grant agreements with the federal government would bind the state to run the Milwaukee-to-Madison leg for at least 20 years or face financial penalties.
