The financial underpinning for Governor Brown’s California Water Fix seems to be unraveling.
The governor was hoping the Westlands Water District would be a major financial backer for his $15 billion project. But the SEC’s recent fine of Westlands for misleading bond investors has brought a wave of editorials questioning whether they can be trusted and whether their water users can afford a $15 billion boondoggle. The Contra Costa Times, San Jose Mercury and Modesto Bee have all editorialized against the project. These editorials, plus scrutiny of the project and its financing in the New York Times, Los Angeles Times, Wall Street Journal and other news outlets raises serious questions about the future of the project.
Can the governor and his delusional band of promoters deflect these criticisms and charge ahead with the project? They’ll try, but once people start looking at the actual financial basis for this boondoggle and compare it to the alternatives, I predict the twin tunnels will crumble.