Governor Gavin Newsom vetoed Assembly Bill 1608, which sought to enhance oversight of California’s High-Speed Rail Authority. The bill, authored by Assembly Transportation Committee Chair Lori Wilson, a Democrat from Suisun City, would have allowed the Office of the Inspector General to hire more skilled workers and grant the agency the power to sign contracts under $1 million.
The veto came two weeks after the investigative office released a scathing report revealing that the high-speed rail authority approved nearly $600,000 in unallowable travel expenses for its consultants. The report found that consultants flew first class, took luxury rides, and visited a nightclub on taxpayer dollars.
The auditing agency, created in 2022 to conduct independent reviews of the long-delayed bullet train project, has never been fully staffed due to a lack of authority to hire expert staff, according to Inspector General Ben Belnap. As of last month, three of the agency’s eight full-time positions tasked with audits and reviews remained vacant.
Belnap said his office planned to examine how the high-speed rail authority approves change orders – contract adjustments that often come with hefty price tags – in the spring but had to delay the work until the fall due to limited staff. He emphasized the need for timely oversight.
Belnap also expressed frustration with the lengthy process required to purchase software or other services without first clearing requests with other state agencies. He cited an example where his office wanted to spend $300,000 on software to allow tipsters to submit complaints confidentially, but the state’s contracting process cost an additional $1 million and took over a year.
In his veto message, Newsom urged the inspector general’s office to work with what it has, noting that his administration had supported the agency through targeted actions and approved a measure earlier this year to protect sensitive records and whistleblower information from public disclosure.
Belnap expressed disappointment over the veto but said his governor’s staff offered to help clear some of the hurdles. He plans to take them up on it, stating, “If it’s just more of the same, then I’ll have to think outside the box. I’m just not going to allow the veto of AB 1608 to affect this office any longer.”
