California High-Speed Rail: A Textbook Case of Fiscal Failure Under Controller Malia Cohen

California’s long-troubled High-Speed Rail project stands as one of the most expensive and least accountable boondoggles in state history. What began as a 2008 voter-approved promise of an 800-mile network for roughly $33 billion has shrunk to a 171-mile Merced-to-Bakersfield stub with a current price tag of $34.76 billion for that segment alone — and broader Phase 1 costs now exceeding $125 billion.

Public records show approximately $3.68 billion in vendor payments over just 32 recent months. Yet the project remains years from revenue service, plagued by delays, massive cost overruns, and unresolved conflicts with Proposition 1A’s strict no-operating-subsidy rules.

The State Controller holds independent constitutional authority as California’s chief fiscal officer to demand evidence before taxpayer dollars flow out the door. Under Controller Malia Cohen, that authority has not been exercised with the rigor this project desperately requires.

The Controller’s Job Is Clear — Why Hasn’t It Been Done?

Government Code § 12410 grants the Controller broad powers to scrutinize claims for legality, correctness, and proper documentation prior to disbursement. A capable Controller could — and should — have required the following before signing off on billions in High-Speed Rail payments:

• Comprehensive funding sufficiency analyses proving a viable path to completion without perpetual subsidies.
• Detailed milestone registers tying every payment to verifiable, enforceable deliverables.
• Full transparency on contract amendments, change orders, and massive settlements.
• Independent verification of actual progress toward operational readiness.

There is no clear public evidence that Controller Malia Cohen’s office imposed these basic safeguards. Billions continued to flow while gaps in accountability persisted. This represents a profound failure, to use the tools the office was designed to wield.

How Proactive Oversight Could Have Saved Taxpayers Billions

Had these requirements been enforced:

• Early funding sufficiency reviews would have exposed reliance on now-terminated federal dollars and glaring operating shortfalls — projected at $110–140 million annually — that violate Proposition 1A.
• Milestone-based payments would have curtailed unchecked change orders and settlements that have ballooned costs.
• Taxpayers could have avoided deepening commitments, preserving billions in Proposition 1A bonds and Greenhouse Gas Reduction Fund money for higher-priority needs.

Instead, because of Malia Cohen’s lack of financial experience, California sits in an even deeper fiscal hole with little to show for the investment.

What I Would Have Done Differently

As State Controller, I would have acted immediately:

1. Issued formal demands for funding sufficiency studies and milestone registers before any further large disbursements.
2. Launched a public dashboard linking payments directly to verified progress.
3. Required full disclosure of all contracts, amendments, and settlements.
4. Presented clear, evidence-based options to policymakers: strengthened controls for a narrowed scope, re-scoping, or orderly wind-down that protects completed assets.

These steps would have been driven by fiscal duty alone.

Where California Would Stand Today

With real oversight in place, the state would face a far smaller financial commitment, clearer documentation of progress, reduced legal risks under Proposition 1A, and greater ability to redirect resources where they are truly needed. Californians would not be staring at a project buried in a multi-billion-dollar hole with limited operational results.

The Bottom Line

High-Speed Rail’s failures span multiple administrations, but the State Controller’s independent fiscal check has been notably absent under Malia Cohen. Taxpayers deserve better than passive approval of massive payments without rigorous evidence.

As a candidate for State Controller, I commit to using the full powers of the office to demand radical transparency, enforce accountability before disbursement, and protect California families from further waste on unproven promises.

California needs a Controller who puts verifiable results and taxpayer protection first. That change starts now.

References and detailed data available upon request. Sources include CHSRA Business Plans, Open Fi$Cal, OpenSecrets.org, California Secretary of State records, and Government Code provisions.