http://www.latimes.c...,0,725258.story
(Judge) Kenny ruled that the state does not have a valid financing plan, which was required under the 2008 bond measure, Proposition 1A. The measure included provisions intended to ensure the state did not start the project if it did not have all of the necessary funds to complete a self-supporting, initial operating segment. The state rail agency created a funding plan, but it was an estimated $25 billion short of the amount needed to complete a first working section of the line. Kenny ruled that the state must rescind the plan and create a new one, a difficult task because the state High-Speed Rail Authority hasn't identified sources of additional revenue to allocate to the project.
Separately, in an action brought by the state to support its actions, Kenny found officials made critical errors in approving the sale of the bonds and declined to legally “validate” the sale. California Treasurer Bill Lockyer has said he will not sell bullet-train bonds without a court validation. It appears to be the first time in state history that a judge refused to validate a bond sale.