From California Post · · 2m
California's high-speed rail paid for tiki bars and escape rooms
Consultants billed the state for gyms, nightclubs, and premium flights while the $231 billion project faces a cash crisis.
In brief
Consultants billed the state for gyms, nightclubs, and premium flights while the $231 billion project faces a cash crisis. California's high-speed rail project paid $680,000 in questionable consultant expenses, including trips to gyms and bars, while facing potential bankruptcy by 2027. Originally reported by…
Consultants billed for tiki bars
California's high-speed rail paid over $680,000 in dubious travel expenses to consultants, including rideshare trips to gyms, nightclubs, and an escape room.
Little explanation for travel needs
An inspector general audit found $2 million in travel payments to four consulting firms. Most expenses had little or no justification for why consultants needed to travel.
“We often found little or no explanation of the need for consultants to travel”
Project running out of money
The rail project faces a critical cash bottleneck and could run out of funds by the end of 2027. The estimated cost has ballooned to $231 billion with completion delayed until 2039.
Sloppy approval process revealed
The rail authority approved expenses assuming executives requested the travel, without any explanation of need or cost consideration. About 60% of expenses had no advance approval.
Uber rides to Planet Fitness
One consultant was repeatedly reimbursed for premium Uber rides to Planet Fitness gyms in Sacramento. The audit also found rides to a tiki bar, nightclub, and various restaurants.
Out-of-state sushi and cigars
Consultants expensed trips to a Denver sushi restaurant and a Washington, D.C. cigar lounge. These trips clearly appeared to be for personal enjoyment rather than state benefit.
“These trips clearly appear to be for personal enjoyment rather than for the benefit of the State”
Escape room on the state's dime
Premium and first-class flights were taken without justification. The rail authority also paid over $118,000 for international travel despite contractual bans.
Republicans demand accountability
GOP leaders blasted the findings as evidence the project should be shut down. Assembly GOP Leader Alexandra Macedo said Californians shouldn't subsidize consultant lifestyles.
“Californians are already paying some of the highest costs in the country”
Rail authority promises reforms
The authority said it will strengthen internal controls, implement more rigorous documentation requirements, and recover any improper costs identified in the audit.
Still no track laid down
Workers broke ground in 2015, but only this year did the project enter the track-laying phase. About 119 miles are under construction with completion now targeted for 2032.
In short
California's high-speed rail project paid $680,000 in questionable consultant expenses, including trips to gyms and bars, while facing potential bankruptcy by 2027.
