California High-Speed Rail Bond Sale Rejected by Judge
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The California High-Speed Rail Authority was barred from issuing more than $8 billion in bonds to help finance a high-speed rail line from San Francisco to Los Angeles after a judge said the agency failed to provide sufficient justification for approving the sales.
California state Judge Michael Kenny in Sacramento ruled yesterday that the authority’s finance committee didn’t adequately disclose its reasons for authorizing the bonds. The committee said it was “necessary and desirable” to approve the bond sales, a rationale that echoed the position of public officials on the rail authority while not complying with California’s bond law, Kenny said.