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The California High-Speed Rail Authority (CHSRA) this week released its response to a state audit largely aimed at questioning how the authority would fund California’s high-speed rail project if anticipated funding is reduced or delayed.  

In April, the Bureau of State Audit released the findings of its review, in which the state outlined 10 recommendations regarding the project. Among them was a recommendation that the authority develop alternative funding sources “to ensure it can adequately respond to funding levels that may vary from its business plan. ... These scenarios should detail the implications of variations in the level or timing of funding on the program and its schedule.”

After noting the funding commitments CHSRA has already received — $9 billion from the Proposition 1A bond measure passed by California voters in 2008 and $2.25 billion in American Recovery and Reinvestment funds — and the funding still available from the federal government, board members agreed that “it is important to be aware of and plan for funding scenarios that differ from the funding plan presented in our December 2009 business plan,” according to the audit response.

The board currently is working with the authority’s financial analysis consultant on the development of funding scenarios, including best — and worst — case scenarios, and staging and phasing of the project based on varying funding levels, according to the audit response.

Although board members said the alternative funding plans would not be ready in time for the 60-day audit response, they plan to report on their progress in the six-month audit response, due in late October, with a complete set of funding scenarios prepared no later than the one-year audit response.

The board also noted the difficulty of planning for the receipt of federal grant money for the project.

“We’re guessing what the federal government’s funding distribution plan will be in 10 years,” said Audit Report Review Committee Chairman Curt Pringle during the board’s June 21 meeting.

The funding plans will reflect “our very best determination as to what we think,” he added.

The board will discuss the state audit further during the July 8 meeting.