Rail study shows profits

High-speed rail may have been killed in Florida by Gov. Rick Scott on March 4, but a new report by the Florida Department of Transportation shows that the system would have made money in its first year of full operation.

The study, released March 9, combined with research from two consulting firms to show that the projected Orlando-Tampa system would profit $10.24 million in its first year, nearly tripling that figure within 10 years.

Scott had called White House Transportation Secretary Ray LaHood March 4 to reject $2.4 billion in federal funding for the system.

Following that announcement, U.S. House of Representatives Transportation Committee Chairman Rep. John Mica issued a conciliatory statement.

“While I am disappointed that a plan to transfer the project to local governments and allow the private sector to at least offer proposals was not possible, I respect Gov. Scott’s decision and will continue to work with him and others to find cost-effective alternatives that keep Florida and our nation moving forward with 21st century transportation and infrastructure systems,” Mica wrote in a released statement.

Two state senators had sued Scott after the governor rejected the funding, arguing that he overstepped his authority.

In their suit, Sens. Thad Altman, R-Melbourne, and Arthenia Joyner, D-Tampa, challenged Scott’s authority to reject the money and impose an injunction preventing Scott from rejecting the money while the case was pending. That case was rejected by the Florida Supreme Court, which stated that Scott had not overstepped his bounds.

Lawmakers on both sides of the political aisle had been scrambling to come up with a funding plan for the $2.7 billion system in the meantime after LaHood announced that Scott had requested additional info on the system.

“He asked me for additional information about the state’s role in this project, the responsibilities of the Florida Department of Transportation, as well as how the state would be protected from liability,” LaHood said in a statement.

Last week, Scott had told Mica that he would not consider any alternative plans for a high-speed rail system.

Mica had as recently as Feb. 24 seemingly been prepared to accept Scott’s decision, acting conciliatory in the wake of news that day that Scott wouldn’t accept any rail deals, regardless of financing or economic outlook.

“I have done all that I can to salvage the project to this point and present what I consider to be a viable alternative plan that places the risk with the private sector and protects the taxpayers,” Mica said in a released statement.