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org Advocate for the Heavy Construction Industry

November 29, 2011

The Honorable Bonnie Lowenthal, Chair; and Members of Assembly Committee on Transportation California State Assembly State Capitol, Room 5158 Sacramento, CA 95814 Re: California High-Speed Rail SUPPORT Dear Assemblymember Lowenthal, The California Alliance for Jobs strongly supports moving forward with high-speed rail in California. While we understand there are legitimate questions with the Draft 2012 Business Plan that deserve debate, discussion, and response in the coming months, we are heartened it outlines a much more realistic roadmap to completion of high speed rail in California over the next 20 years. As we all have witnessed, the debate over the details of the business plan has been spirited. There have been questions about cost, funding, whether starting construction in the Central Valley makes sense and whether the High Speed Rail Authority is being responsive to local concerns. But there is a more fundamental issue that must be addressed first: Does California really need high-speed rail? As the one who oversaw the high-speed rail bond measure campaign in 2008, I firmly believe that high-speed rail isnt a luxury, but a necessity for California. It isnt a pipe dream that should be shelved until such time in the distant future when California hopefully finds itself with loads of discretionary cash. Plain and simple, high-speed rail is the most cost effective, environmentally responsible way to help transport the additional 20 million people that will be living in California three decades from now. Construction of the project will create jobs and boost our economy at a time when California needs it most. If we dont invest in high-speed rail, California will need to find a way to build more than 2,000 additional lane miles. Well also have to determine how to build new airport terminals and runways and how to cram more flights into an air corridor that is already the busiest in the nation.

Associated General Contractors of California

Operating Engineers Local Union #3

Engineering and Utility Contractors Association

No. California District Council of Laborers

Assoc. of Engineering Construction Employers

Northern California Carpenters Regional Council

That infrastructure will cost a lot of money a lot more than high-speed rail. And as a member of the California Transportation Commission, I can say unequivocally, it is money the state doesnt have nor do we know where it will come from. And most importantly, there is no plan in place to build all those additional roads and airport runways. Unless we decide to implement a massive toll-road system, improvements to Californias roadways will continue to be subsidized primarily by a gas tax that has not kept pace with construction costs and local sales tax measures. Once the initial operating segment of highspeed rail is constructed, even the most conservative business model shows that high-speed rail will become self-sustaining generating enough revenue through private investments and passenger ticket sales to cover its own operating costs. Building a high-speed rail network will be good even for those who choose not to use it. California motorists currently lose $18.7 billion annually due to lost time and fuel costs because of our congested roads and highways. High-speed rail will also eliminate 3.2 million tons of environmentally damaging CO2 emissions each year. So, does California need high-speed rail? The answer is, yes. The state is unquestionably facing budgetary challenges. But we shouldnt forget a similar time, 80 years ago, when California and the rest of the nation was gripped in the Great Depression. How did our visionary leaders respond? They built the Golden Gate Bridge, the Bay Bridge, Shasta Dam and the beginnings of the Central Valley water project. Those pieces of infrastructure, envisioned and built in the crucible of adversity, continue to serve millions of Californians every day. They created thousands of jobs at the time of construction and laid the foundation for California becoming the eighth largest economy in the world. High Speed Rail must be part of that vision. We need to have a spirited discussion about the best way to accomplish this critical transportation project. Lets hold the High-Speed Rail Authority to the highest standards of accountability and performance. But lets do it with a commitment to roll up our shirt-sleeves and build something that will serve California for generations to come. Sincerely,

Jim Earp, Executive Director California Alliance for Jobs Cc: Members of the Assembly Transportation Committee Governor Jerry Brown

Associated General Contractors of California

Operating Engineers Local Union #3

Engineering and Utility Contractors Association

No. California District Council of Laborers

Assoc. of Engineering Construction Employers

Northern California Carpenters Regional Council