Minnesota legislators are not only considering shutting down the Northstar commuter train, they are raging at the Metropolitan Council, which is the Twin Cities’ regional planning agency which also runs its transit agency, for its light-rail cost overruns. At issue is the Southwest light-rail line, which when Metro first asked the federal government for funding was supposed to cost $1.25 billion but now, according to a state legislative audit, is costing $2.86 billion.
Twin Cities light rail: overbudget and underperforming. Photo by Central Corridor.
Even after adjusting for inflation, that’s roughly a 100 percent cost overrun. By the time the federal government agreed to share half the costs, the projected cost had risen to $2 billion. From that point on, the state or local government is responsible for all cost overruns, so what they thought was going to cost state and local taxpayers $1 billion is ending up costing them almost $2 billion. Continue reading
