The California High-Speed Rail Authority business plan released at year's end is inconsistent, unrealistic and potentially illegal, according to a Legislative Analyst's Office (LAO) report to the Assembly Transportation Committee.

These days, the California High-Speed Rail Authority might as well be called the Political Traction Company. After winning voter approval of a $9.9 billion bond in November, the authority seemed to become a favorite of the Obama administration, which is eager to fund high-speed rail construction. In addition, some Central Valley communities � such as Fresno and Bakersfield, where stations are set to be built � are eager to see the project advance. Nevertheless, cities along the Peninsula of San Mateo and Santa Clara counties are asking questions about the project.

The California High-Speed Rail Authority finds itself living something of a double life these days. The authority has received great interest since the September 11 terrorist attacks, yet the authoirty is going broke and could close down in 2002.