SACRAMENTO, Calif. - After months of scraping for money, the project to link California's major urban areas with trains traveling at more than 200 mph may be headed back on track, despite a worsening state budget.

During the 2001 energy crisis, Gov. Gray Davis cut the project's budget to only $1 million, barely enough to pay for the state's high-speed rail board and its small staff. But there was no money for environmental impact statements needed before the state could consider laying tracks, and legislators failed to find more money.

This year, however, after the Sept. 11 terrorist attacks disrupted the state's airline system, Davis has sought the full $8.46 million requested by the board. Project supporters are hopeful that lawmakers will agree, despite a projected $10.5 billion revenue shortfall in the coming fiscal year.

"All of a sudden the governor loves us," said Mehdi Morshed, the board's executive director.

Morshed said the $8.46 million would let the board complete at least a draft environmental impact report by June 2003. Then would come more detailed planning to pinpoint potential routes and clear the way for construction, probably in segments, Morshed said.

"When you get to the project level then you actually have to do engineering work and figure out exactly where it is within an inch. How many feet from (existing) railroad tracks it is? What kind of sound wall do you need?"

The 700-mile, $25 billion system would link California's major urban areas with trains traveling at top speeds of more than 200 mph. Supporters see it as a much-needed alternative to highways and airlines as the state's population grows an estimated 65 percent by 2040.

Until this year, Davis' support had been lukewarm at best. Shortly after taking office in 1999 he referred to the project as a space-age "Buck Rogers" system and said he'd prefer to improve commuter trains.

In 2000 he approved $5 million to begin environmental studies although rail planners initially sought $10 million.

Last year planners requested $14 million to continue the studies but initially got only the $1 million from the state to pay for board expenses.

The planners eventually managed to scrape together about $4 million for environmental work by scrounging state and federal money. They also cut costs by dropping dozens of potential routes from consideration and settling on electric- and diesel-powered trains instead of the futuristic magnetic levitation system.

Sandy Harrison, a spokesman for the state Department of Finance, said in the past the administration has questioned how much the board actually needed for its work in a particular fiscal year. But Davis decided to support the $8.46 million for the fiscal year beginning July 1 to let the board finish its impact statement, Harrison said.

Spokeswoman Hilary McLean said Davis has always supported high-speed rail.

"If you look at his budgets over the last several years he has clearly demonstrated a commitment to providing California commuters with options," she said.

She said the Buck Rogers comment was just an "off-the-cuff remark" apparently generated by the overall cost of the project.

The real test for the project will come after Davis unveils revised revenue projections in May and lawmakers focus on exactly how much they'll have to cut. But Davis' support makes the project "much more viable," Morshed said.