In January 2006, the Governor omitted the initial funds for the project from his $222.6 billion Public Works Bond for the next 10 years.

The Governor did include $14.3 million in the 2006-07 budget for the California High-Speed Rail Authority, enough for it to begin some preliminary engineering and detailed study.

Of that sum, $9 billion will be used to construct the core segments of the rail line from San Francisco to the Los Angeles area and the rest will be spent on improvements to local railroad systems that will connect locations away from the high-speed rail mainline to the high-speed system.

Prop 1A required the California High-Speed Rail Authority to "seek private and other public funds to cover the remaining costs.

"[3] The project also requires federal matching funds, since the $9.95 billion bond covers only part of the estimated cost of the initial core segment.