High-Speed Rail Proposal Raises Concerns for County Revenues and Local Control

CSAC and other local government groups have submitted a comment letter noting concerns with the High-Speed Rail Authority’s Draft 2026 Business Plan, which would have negative impacts on county revenues. In the letter, CSAC noted concerns with a specific proposal in the Authority’s Draft 2026 Business Plan:  

Authority to Create Enhanced Infrastructure Financing Districts  
The Authority argues that it should be granted the ability to establish land value capture districts that rely on Tax Increment Financing (TIF) in its 2026 Business Plan. This would be a precedent-setting role for the state and would require constitutional amendments to provide the Authority with legal taxing and land use authority. Specifically, we are concerned that the effort to give the Authority this power would:  

• Undermine constitutionally provided land‑use authority afforded to cities and counties, which would allow the Authority to enact its own General Plans and zoning regulations that would provide the Authority with exclusive decisional responsibility for development decisions in these areas.    
• Allow the Authority to redirect property-tax increment and other value‑capture revenues away from counties, cities, and special districts—entities responsible for public safety, social services, public utilities, and transportation.  
• Create conflicts with existing enhanced tax increment financing districts that are within half a mile of the Authority’s existing planned stations.   

CSAC will continue to update members on this issue as it evolves.