The California Supreme Court’s denial lets stand a lower appeals court ruling that allows the state to issue $8.6 billion in bonds. The High Speed Rail Authority also will not have to develop a new funding plan.
The Pacific Legal Foundation represented the plaintiffs suing to stop the bonds from being issued. The Foundation’s Harold Johnson called the refusal to hear the case bad news for California taxpayers.
“It’s such an expensive gambit that the court has sanctioned today," says Johnson. "I think it’s not just really bad public policy, I think it’s wrong as matter of constitutional law.”
But Lisa Marie Alley with the High Speed Rail Authority called it a big victory.
“It once again reaffirms that we’re building a modern high speed rail system that connects the state, creates jobs and complies with the law,” she says.
The project still faces other lawsuits. But Alley says these two were the most challenging to date.