California’s High-Speed Rail plan is finally helping people get from one place to another. Just not exactly how intended.
An investigation reveals the group running point on the project violated state rules and contracts with millions of dollars in travel expenses. The California High-Speed Rail Authority reportedly paid more than $2 million in travel expenses for outside consultants over two fiscal years.
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Investigators reviewed around half of the authority’s consultant travel expenses from the last two fiscal years. Roughly 60%, or $680,500, had not been approved before the travel occurred.
The report said the authority often lacked proper documentation explaining why consultants needed to travel or why they couldn’t just do it remotely.
They also gave several examples, including one where a consultant traveled from Denver to California 20 times to meet with the authority’s executive team. It’s unclear if they had the technology for a Zoom call.
California on average is around 1,000 miles from Denver, which makes this roughly 20,000 miles of travel. That’s about 25,000% more milage than what’s built on the high-speed rail so far.
The investigation also identified $81,000 in consultant travel expenses that are not allowed under state travel regulations. Those include upgraded flights and rideshare trips to destinations including gyms like Planet Fitness, an escape room and a nightclub.
Another expense involved nearly $40 for an Uber Black ride covering less than one mile in downtown Sacramento. It’s unclear if scooters or walking were an option.
The CHSRA also reportedly paid about $118,000 in international travel despite contract provisions prohibiting it.
The inspector general said state rules require agencies to determine that consultant travel is necessary and cost-effective. Beginning in October 2024, agencies were also required to consider remote technology when making those determinations.
In their response, the authority said it takes the findings seriously and plans to strengthen controls over consultant travel, require more documentation and approvals, and recover improper costs identified by the investigation.
The authority agreed to adopt or partially adopt several recommendations, with some changes expected by early 2027.
The inspector general said it plans to conduct another evaluation after March 2027.
It’s the latest in a long line of issues for the project, including potential legal violations, running out of money and more.
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