California High Speed Rail: Political Event Risk Alert
Smith’s Infrastructure Grade: 70/0/-1
The municipal infrastructure funding crisis seems to be helping define Steve Hilton’s California campaign. He is running for Governor of California and his campaign focus is to make the high-speed train from Los Angeles to San Francisco a major issue. To be clear, Smith’s Research & Gradings is not endorsing any candidates in California’s Governor Race. And, to be crystal clear, the nearly $10 bln. of California High Speed Rail bonds issued in 2008 are backed by the State’s G.O. Pledge. However, the campaign has created attention and a potential political event risk for funding the project.