California high speed rail CEO stripped of contracting power as spending scandal grows

The vote to strip the CEO of contracting power came after the authority's inspector general documented widespread failures in overseeing consultant travel spending, and after whistleblowers produced expense records that raised further questions about how money is moving through the project. The chief executive dodged reporters' questions after the vote.

The high speed rail project, first approved by voters in 2008, has become a case study in how megaprojects consume money without producing results: billions spent, billions more committed, and no operational track carrying passengers. Now the authority faces a budget shortfall severe enough that the project could run out of money by the end of next year.

The scandal adds fuel to the long running argument over whether the state should keep funding the rail line or cut its losses. Critics call it a boondoggle that has enriched consultants while riders wait. Supporters say the money spent is sunk and the state needs the infrastructure. Either way, the man at the top just lost the power to sign the contracts.