from the Infrastructurist:
Ray LaHood’s HSR Smackdown
Urban Nation | Willy Staley | Dec 17th, 2010
Just last week, the Ray LaHood’s Department of Transportation pulled high-speed rail funding from Ohio and Wisconsin, the two states with incoming Republican governors, John Kasich of Ohio and Scott Walker of Wisconsin, who both swore to oppose the projects. They got their wish, and the $1.2 billion they had been promised is now being redistributed among the 13 other states with rail projects in the works.
LaHood’s decision was smart. If the new Republican governors are opposed to receiving the money mostly on an anti-Washington-spending basis, which was the central narrative of the midterm elections, then they have only shown that they can hurt their state in the long-run by turning it down, in two ways.
First, and most obvious, the money didn’t stay in federal coffers—it’s just being redistributed to states that are willing to cooperate with Washington, and invest in their own infrastructure. They have not removed any tax burden from their state, for now—this was grant money, not loan money, so the burden would be spread all across the land—though they cited fears that the high-speed rail projects would require subsidies later on.
The second reason this is unwise is that these states will leave themselves less competitive in the long-run. The high-speed rail network is designed to connect large quantities of human capital together in a more efficient, sustainable fashion. Should petroleum become more expensive, as many suspect it will within our lifetime, then these regions that have not invested in rail will be hurting even worse than they are now. Further, as Richard Florida would point out, rounding up a bunch of people into these hubs, you can find new efficiencies and even new industries, and there is shared economic growth. .........(more)
The complete piece is at:
http://americancity.org/columns/entry/2799/