The 2010 elections saw Tea Party craziness and misdirected rage produce some loony campaign positions. One position I've been watching lately is Wisconsin governor-elect Scott Walker's promise to kill the plan for upgrading track between Milwaukee and Madison. Walker promised to reject the use of $810 million of stimulus money toward HSR (high speed rail) improvements and instead apply those funds toward road and highway construction.
It seems that Scott Walker will not have the luxury of waiting until January 3rd when he assumes office to make the final decision. Walker is being pressed for a final decision. Now!
Will Walker stay obstinate and watch the funds and jobs move elsewhere? Will he concede and keep the jobs and infrastructure improvements in Wisconsin? Is he going to have egg on his face? Or will he weasel his way out of this by finding some way to blame the federal government even as he flip flops by taking the funds for their intended use?
Ray LaHood, US Transportation Secretary has made it plain that he intends to make sure these funds are used for the purpose they were intended. In LaHood's own words:
"I respect the power of governors to make decisions for their states," Mr. LaHood wrote to Mr. Walker. "There seems to be some confusion, however, about how these high-speed rail dollars can be spent. For this reason, I would like to set the record straight: None of the money provided to Wisconsin may be used for road or highway projects, or anything other than high-speed rail. Consequently, unless you change your position, we plan to engage in an orderly transition to wind down Wisconsin's project so that we do not waste taxpayers' money."
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UPDATE #2: This needs to be near the top. Scott Walker wrote a reply to Ray LaHood that basically kills HSR in Wisconsin. He has decided he will stick to his position and it rather looks like he will try to deflect criticism by complaining about the billions of dollars he wants to expand highways.
Another important angle: BruceMcF has the link showing that if Wisconsin cancels at this stage, they owe the federal government about $100 million. Compare that to the exaggerated $7.5 million per year in operating costs that Walker is complaining about. This would be subject to considerable legal maneuvering of course.
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But this is just the latest in an amazing story of how this HSR project is already unwinding. Immediately after the election on Nov. 2nd the outgoing Democratic governor Jim Doyle instructed through his Department of Transportation that current contract work related to this project be suspended.
The immediate consequences are people losing their jobs. The bigger picture for Wisconsin is quite bad. There are 55 permanent jobs projected for after the track improvements and at a peak in 2012 4,732 temporary jobs related to the construction. Unless Walker changes his mind these are gone. Gone also of course is any stimulation the nearly 5,000 jobs would have on the Wisconsin economy.
The move has also given the train company Talgo reason to rethink whether it wants to stay based in Milwaukee. That amounts to 40 jobs currently but possibly up to 125 in the near future. Walker is trying to convince Talgo to stay, but with a solid record against public transportation why should Talgo take him seriously? With conflicting statements like the ones highlighted below, it's clear Walker is trapped. He's telling Talgo one thing while his spokesperson says the opposite.
Talgo spokeswoman Nora Friend said the company hopes that Walker can be convinced of the value of the project.
"He was very kind to explain that the decision is not final. He's just trying to understand the implications of the big project. He needs time, and we think that's fair," Friend said.
But Bader [Walker spokeswoman Jill Bader] said Walker hadn't changed his mind.
"Scott remains opposed to the train. He reached out this afternoon to encourage Talgo to remain in Wisconsin," Bader said. "He needs time to have discussions next week with the Doyle administration on their intentions when it comes to this project, and will continue to examine all legal options to stop the train."
How on earth did this guy get elected? By playing loose with the facts. Walker consistently told voters that the funds could be diverted into road and highway construction. He also repeated that Wisconsin would have to pay $7.5 million per year in operational expenses, but since Amtrak is usually subsidized many claim $750,000 is more realistic. Much of Walker's criticism has been that Wisconsin doesn't need another Milwaukee-Madison transportation option but the bigger picture of regional HSR and the need to improve some abysmal track that reduces speed below 20 mph in places is conveniently overlooked. In short the benefits of the project are far wider than Walker wants to acknowledge.
Meanwhile Illinois and New York have their eyes on this $810 million and are asking to have it redirected to HSR projects in those states. Those states are looking beyond the initial phases of the HSR funding. Gov. Quinn of Illinois has asked for $8 million to begin the work on a 220 mph train between Chicago and St. Louis thus reducing travel time to 2 hours.
NOTE: I feel a little presumptuous writing this since I don't live in Wisconsin, but it is also a regional issue. If service like this was available now I would be using it since I travel between Minnesota and Illinois frequently. But I gladly welcome more insight from Wisconsin friends.
UPDATE: greendem also has a diary on this today and I'm glad someone else also thought the comments by LaHood were big news.
The many events of the timeline on this is just jaw dropping, mouth open, head shaking OMG. I thought it was worth working up a summary timeline style. The same links are used as above. The format might help follow the progression better. Click the dates for the full story of each development:
Nov. 1: Walker talks tough against HSR. Blames Obama.
Walker said he would do everything in his power to end the project. And he vowed to make the rail line an issue in President Barack Obama's 2012 re-election campaign "if he tries to force this down the throats of the taxpayers."
Nov. 2: Scott Walker elected Governor.
Nov. 3-4: Gov. Doyle halts work on HSR project.
"At the governor's request, I have asked contractors and consultants working on the high speed rail project to temporarily interrupt their work for a few days," Busalacchi said in a written statement, referring to outgoing Democratic Gov. Jim Doyle.
"In light of the election results, our agency will be taking a few days to assess the real-world consequences, including the immediate impacts to people and their livelihoods, if this project were to be stopped."
Nov. 5: News about the job losses because of Walker's decision come out. Gov-elect Walker says he hasn't made final decision AND says his decision is final. Hmmmm. Which will it be?
Friend emphasized that Talgo has work to keep its employees busy through 2012 and would not make any layoffs immediately. The company has already hired about 40 people for its current contracts and plans to have a total of 125 on board by next year. If it gets contracts to build trains for the Milwaukee-to-Madison line and for other states, it could keep the plant in operation beyond 2012 and expand it.
"This is a very challenging process, and we're in the hiring stage and we want to attract good employees from the area," Friend said.
Construction employment on the line itself was projected to peak at 4,732 jobs in 2012, with 55 permanent jobs to operate and maintain trains, stations and tracks.
Talgo spokeswoman Nora Friend said the company hopes that Walker can be convinced of the value of the project.
"He was very kind to explain that the decision is not final. He's just trying to understand the implications of the big project. He needs time, and we think that's fair," Friend said.
But Bader said Walker hadn't changed his mind.
"Scott remains opposed to the train. He reached out this afternoon to encourage Talgo to remain in Wisconsin," Bader said. "He needs time to have discussions next week with the Doyle administration on their intentions when it comes to this project, and will continue to examine all legal options to stop the train."
Nov. 8: Ray LaHood lays it down for Walker.
"I respect the power of governors to make decisions for their states," Mr. LaHood wrote to Mr. Walker. "There seems to be some confusion, however, about how these high-speed rail dollars can be spent. For this reason, I would like to set the record straight: None of the money provided to Wisconsin may be used for road or highway projects, or anything other than high-speed rail. Consequently, unless you change your position, we plan to engage in an orderly transition to wind down Wisconsin's project so that we do not waste taxpayers' money."
Nov. 9: Other states would love to have the funds and Wisconsin gets to watch jobs and infrastructure move to other states.
Illinois wants the $810 million in federal high-speed rail money that Wisconsin Governor-elect Scott Walker has promised to reject.
Scott Walker writes Ray LaHood back in a tone that says basically HSR is dead as long as he is Governor.