Florida Gov. Abandons High Speed Rail Project

TALLAHASSEE, Fla. -- Gov. Rick Scott is canceling a proposed high-speed train line between Orlando and Tampa promoted by President Barack Obama, saying Wednesday it would cost Florida too much even with $2.4 billion in federal help.

Cost overruns could put Florida on the hook for another $3 billion and once completed, there's a good chance ridership won't pay for the operating cost, meaning the state would have to pump even more money into the line each year, Scott said.

"The truth is that this project would be far too costly to taxpayers and I believe the risk far outweighs the benefits," the Republican governor, who took office last month, said in a press release.

He also said if the project failed, the state would have to return the money to the federal government. Scott said he informed U.S. Transportation Secretary Ray LaHood of his decision earlier Wednesday.

"My background is in business, not politics. But you don't have to be an economics expert to understand that if you spend more money than you take in, your business will fail," Scott said.

The project was important enough for lawmakers to call a special session in December 2009 solely to approve money for an Orlando-area commuter rail system that would connect with the high-speed rail. They acted with urgency because the project was needed to attract stimulus money for the high-speed rail.

High-speed rail is one of Obama's priorities, and his latest budget proposal calls for $53 billion over the next six years for projects across the country. Florida also stood to benefit when Republican governors in Ohio and Wisconsin rejected high-speed rail projects. The Obama administration committed another $342 million to Florida from the money that would have gone to those states.

Scott criticized Obama's spending plans when he announced Florida would reject the money, saying the president's most recent budget proposal would increase the country's debt.

"Higher taxes and more government spending is a recipe for disaster. Government has become addicted to spending beyond its means and we cannot continue this flawed policy," Scott said.