The independent, nonpartisan, federal watchdog agency, the U.S. Government Accountability Office (GAO), gave the California high-speed rail project passing marks in an audit released last Friday. The report found that the California High-Speed Rail Authority has produced "reasonable" ridership and revenue forecasts in its Revised 2012 Business Plan, while also pointing out that the project's cost estimates could be improved and that future funding for the project remains uncertain. Jeff Morales, CEO of the Authority, called the GAO's report, "an important validation from a highly respected government watchdog." "This is a very good, very strong, report card." Dan Richard, board chairman of the Authority said. "It's not straight A's, but we will aspire to improve in the areas where the GAO tells us we can do much better."
The Authority's business plan forecast that annual ridership will grow to between 16 million and 27 million by 2030, depending on various future conditions, such as the price of fuel. The plan's high ridership scenario assumes a fuel price of $6.11 and the low scenario assumes a price of $2.60 in 2030. Fares for high-speed rail are assumed to be 83% of San Francisco-Los Angeles airfare in 2009. The plan also projected that the high-speed rail system would generate annual revenues of between $1 billion and $1.8 billion in 2030 and proved that no public operating subsidies will be required under any scenario.