Florida Gov. Rick Scott canceled plans for a high-speed train line between Orlando and Tampa promoted by President Barack Obama, saying Wednesday it would cost the state too much even with $2.4 billion in federal help.

High-speed rail is one of Obama's priorities, and his latest budget proposal calls for $53 billion over the next six years for projects across the country. Florida also stood to benefit when Republican governors in Ohio and Wisconsin rejected high-speed rail projects. The Obama administration committed another $342 million to Florida from the money that would have gone to those states.

Cost overruns could put Florida on the hook for another $3 billion and once completed, there's a good chance ridership won't pay for the operating cost, meaning the state would have to pump more money into the line each year, Scott said in a press release issued after he informed U.S. Transportation Secretary Ray LaHood of his decision.

LaHood later released a statement contradicting Scott's assessment of the risk.

"We worked with the governor to make sure we eliminated all financial risk for the state, instead requiring private businesses competing for the project to assume cost overruns and operating expenses," he said.

The move comes a week after Scott, a former CEO who took office in January, proposed state spending cuts of $4.6 billion in the next budget and tax and fee cuts totaling close to $2 billion as Florida grapples with the effects of the recession and continued high unemployment.

Scott said if the rail project failed, the state would have to return the money to the federal government.

"My background is in business, not politics. But you don't have to be an economics expert to understand that if you spend more money than you take in, your business will fail," Scott said.

But a senior official for the federal Department of Transportation said Scott never raised that concern during discussions and the federal department never intended to put the state on the hook for the cost for years to come. It was an issue that could have been negotiated, said the official, who spoke on condition of anonymity because LaHood is still talking with lawmakers about how to respond to Scott's decision.

LaHood said he was disappointed, but said other states would be happy to get Florida's money.

LaHood met with members of Florida congressional delegation Wednesday and was encouraged to find a way to go ahead with the project without Scott's support, the transportation official said. The committed federal money covers 90 percent of the project's estimated cost. LaHood said he would look at that possibility and meet with the delegation again on Friday.

Scott's decision was immediately criticized by politicians from both major parties who support the project.

Scott criticized Obama's spending plans when he announced Florida would reject the money, saying the president's most recent budget proposal would increase the country's debt.