In 1996, the California High-Speed Rail Authority (CHSRA) was established to begin formal planning in preparation for a ballot measure in 1998 or 2000. The CHSRA, a state agency run by a board of governors, is required by law to operate without a subsidy, and to connect the state's major cities in the Bay Area, Central Valley, and Los Angeles Basin. Phase 2 (which has no timetable yet) would extend the system northward through the Central Valley to the Sacramento Valley Station in Sacramento and southward through the Inland Empire to the San Diego International Airport in San Diego.