California Superior Court Judge Michael Kenny ruled against the California High Speed Rail Authority in two decisions announced on November 25. In the first, Judge Kenny ruled that the Business Plan failed to meet the requirements of the voter approved referendum under California Assembly Bill 3034 (2008), in not identifying sufficient capital funding for the first segment. As a result, the Business Plan needs to be redrafted. In the second decision, Judge Kenny declined to issue a conformity ruling that would have paved the way for $8 billion in bonds that had been approved by voters, which were also subject to same Assembly Bill 3034.
Judge Kenny declined to stop construction of the project, which is scheduled to start in the Spring. However, the Authority only has federal funds for that segment, and which would require, in the longer run, matching state funds (which were to have been from the bonds).
According to the San Francisco Chronicle , Kenny's found that the California High Speed Rail Authority "abused its discretion by approving a funding plan that did not comply with the requirements of law."