Sacramento, CA — California’s state treasurer is on track to sell about $1.25 billion in high-speed rail bonds despite an ongoing legal challenge to derail the project.
On Wednesday, Deputy Treasurer Tim Schaefer indicated that even though a lawsuit is not resolved the bonds will be issued on Thursday. A hearing on opponent’s latest attempt to halt the $64 billon bullet train was pushed to next week by a Sacramento County Superior Court judge. The lawsuit argues that legislation signed into law last year goes beyond what California voters allowed and hope to put the brakes on any bond funds being used toward the project. Their attorney, Stuart Flashman, points out that the selling of the bonds will not matter because the lawsuit aims to block the state from spending whatever money is raised from the nearly $10 billion in bonds that voters approved in 2008.
The California High Speed Rail Authority counters that it was merely clarifying legislation.