Newsom vetoes bill expanding high-speed rail inspector general's powers

Right · 2California Gov. Gavin Newsom, a Democrat, vetoed Assembly Bill 1608, a bill that would have strengthened oversight of the state's high-speed rail project by giving its inspector general more hiring and purchasing flexibility. 1 2 Right · 2The New York Post reports the veto came on Wednesday; the Washington Examiner says only that it came "this week". 2 1 Right · 2The bill would have let the High-Speed Rail Office of Inspector General hire more experienced auditors, by exempting it from a lengthy job reclassification process, and enter contracts of up to $1 million without extra approval from other state agencies. 1 2

Right · 1In his veto message, Newsom wrote that the office "should continue working with the appropriate state agencies to address its operational needs through existing processes rather than receive broad, permanent exemptions from generally applicable statewide administrative safeguards." He said his administration already planned to increase the office's information technology project delegation authority, among other support. 2 Right · 2Inspector General Benjamin Belnap, whom Newsom appointed, has said the existing processes are the problem: the office cannot recruit experienced auditors under the low-level job classifications it can use, and getting its own classifications or purchasing delegation would take years. 1 2 Right · 2The Examiner, citing CalMatters, says three of the office's eight full-time audit and review positions were vacant last month, and that the shortage has delayed an examination of the rail authority's change-order process, including a settlement worth more than $500 million. The Post says the office is half-staffed. 1 2

Right · 1On purchasing, the Examiner reports Belnap said the office spent roughly $1.15 million navigating state procurement for software expected to cost about $300,000, and that CBS's California Investigates reported the total could exceed $2.5 million. 1 Right · 2The veto follows an inspector general audit of travel reimbursements. The Examiner says the office reviewed $1.15 million submitted by four consulting firms and found the authority approved at least $685,000 without first approving the trips, including first-class airfare, luxury transportation and trips to a nightclub and other entertainment venues. The Post puts the figure at more than $680,000, also citing premium tickets and rideshares to gyms, nightclubs and an "escape room". 1 2 Right · 1The rail authority disagreed with some findings, including the need to justify individual consultant trips, and the inspector general called its interpretation "fundamentally incorrect". 1

Right · 2Parts of the bill were already enacted through the state budget, including provisions on the inspector general's reporting and confidentiality powers, which let the office shield reports from the public if deemed necessary; the Post says Republicans have criticised these as "anti-transparency". Bill author Assemblymember Lori Wilson said a significant portion went into the budget, including a procurement increase, and that the classification piece was vetoed; she said she looks forward to working with the next governor. 1 2 Right · 1The inspector general's office told the Post it was "disappointed" but committed to overcoming the administrative hurdles and encouraged by the governor's message of continued support. 2 Right · 2Voters approved the project in 2008 with a plan to link Los Angeles and San Francisco by 2020 at about $33 billion. The Post says one projection puts the cost at $231 billion with completion around 2039, while the rail authority pegs it at $126.3 billion after a reassessment this year, and that the project could run out of money by the end of 2027 without new financing. 1 2

Right · 1The Examiner adds that the timing puts scrutiny on Newsom, who is term-limited and is reported to be eyeing a 2028 presidential run. 1