A report issued Tuesday by the authority's Office of the Inspector General said allegations that the CHSRA failed to comply with state regulations and contract requirements when reimbursing consultants' travel expenses were substantiated. Out of the more than $1 million of travel expenses reviewed between 2024 and 2026, the report states, 60%, or $680,500, did not comply with state regulations requiring advance approval, "indicating there was little to no upfront consideration of the need for or cost of the travel."
The report also said other questionable practices included reimbursement for rideshare cancellation fees, same-day flight booking which typically mean higher costs, and travel claims which lacked receipts or supporting documentation.
The OIG report also noted that the CHSRA only committed to implementing some of the corrective actions, and it disagreed with the need for detailed justifications for each consultant trip. The authority also disagreed with the need to explain why consultant work must be in-person versus remotely, and cited a recent executive order requiring applicable state employees to work in office four days a week, an order the OIG said does not address consultant travel or negate state travel regulations.
"We take these findings seriously. In response, the Authority will strengthen internal controls around consultant travel, implement more rigorous documentation and approval requirements, and recover any improper costs identified," the spokesperson told CBS News Bay Area in an email. "We are also working closely with the OIG to ensure corrective action that is both accurate and fair."
Macedo added that Governor Gavin Newsom "should make taxpayers whole and claw back every improper dollar." "Californians are already paying some of the highest costs in the country," Macedo said. "They should not be forced to subsidize consultant lifestyles for a rail project that still has not laid a single mile of track."
When voters approved the initial bond funding for the project in 2008, the entire system was expected to cost between $33 billion and $45 billion. The CHSRA's 2026 Business Plan showed it would take $126 billion to complete Phase 1 of the project.
In July, the OIG warned that the state's high-speed rail project could run out of money as soon as December 2027 unless the state borrows billions to keep construction on schedule. A recent CBS California Investigation also showed that the CHSRA repeatedly missed deadlines to buy the trains at the center of a federal funding fight, and dropped its lawsuit against the Trump administration weeks after missing its own revised deadline.
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