While I'm typically fine with infrastructure spending by the government, in this case I'm thrilled to see this already over-budget project killed.
http://www.reuters.com/article/idUSN2723788020101027
UPDATE 3-New Jersey governor kills big rail tunnel project
Wed Oct 27, 2010 3:17pm EDT
* Republican Christie says decision is final
* Debate illustrates U.S. quandary: stimulus or cutbacks?
* U.S. transportation secretary "extremely disappointed" (Adds reaction from transportation secretary)
By Jon Hurdle
TRENTON, New Jersey, Oct 27 (Reuters) - New Jersey Governor Chris Christie pulled state funding from a $8.7 billion rail tunnel between New Jersey and Manhattan on Wednesday, killing the largest U.S. public works project under construction.
In withdrawing funding for the project, which would have created construction 6,000 jobs, Christie came down firmly on the side of deficit cutting over economic stimulus, an issue dividing politicians before Tuesday's congressional elections.
Christie, a Republican, originally withdrew funding for the tunnel on Oct. 7, saying his state lacked the money to cover cost overruns that could reach as high as $4.8 billion, but he had been reconsidering the decision at the request of U.S. Transportation Secretary Ray LaHood.
"I cannot place upon the citizens of New Jersey an open-ended letter of credit," Christie told reporters. "This decision is final."
The project has been backed by Democratic politicians and commentators who argue the tunnel was badly needed to complement the single, century-old passenger rail tunnel linking New Jersey and Manhattan. Christie also endorsed the project after taking office in January.
"I am extremely disappointed in Governor Christie's decision to abandon the ... tunnel project, which is a devastating blow to thousands of workers, millions of commuters and the state's economic future," LaHood, who had offered Christie financing options, said in a statement.
The tunnel controversy elevated Christie's national profile. The fiscal conservative has been campaigning for Republicans across the country before next week's congressional and gubernatorial elections and earlier this month won a Virginia Tea Party straw poll, topping Sarah Palin.
"I don't think there will be any benefit to me politically," Christie said.
"This is a dollars and cents issue. It's not a philosophical issue," he said.
NEW FEDERAL INCENTIVES
Christie said he met on Sunday with LaHood, who offered $378 million in increased federal funding plus two loan options: a $2.3 billion loan from a federal railroad fund and the possibility of $1.85 billion in financing from a public-private partnership.
The additional $378 million "didn't come close to turning my head," Christie said, rejecting the loan offers because they would have to be repaid.
NO..NO..NO..NO...would be all you would hear.
