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Monday, April 17, 2006

Northstar costs rise

The total price tag of the Northstar commuter rail line has increased to $307 million. The corresponding increase in the size of Rep. Phil Krinkie's head is as yet unknown, but it's assumed that it might be close to the exploding point.

Seriously, it does sound like the previous cost estimates were unrealistic. Inflation may be closer to 4 percent than 2.7 percent, but I hope not. The amount set aside as a cushion was too low; 8 percent is a lot more realistic than 3 percent for unforseen overruns. I'm not sure about the other budget adjustments, but they probably aren't all that off.

Let's get this thing done before the costs go up any more. I am convinced that like the Hiawatha line, this thing will be much more popular than expected when it opens. Let's get the chance to see that.

2 Comments:

At 1:52 AM, April 19, 2006, Blogger Time said...

As the war continues, prices will continue to rise. I paid $2.80 for a gallon of gas today.
Add 10% to that overrun cost. In fact my gwess is that by the time they finish the line it will cost 425m.

 
At 7:14 PM, April 19, 2006, Blogger Douglas Hester said...

Think about how much money we'll save if we don't build it at all!

 

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