Civil Beat Discovers $227 Million Error in State Consultant's Work
12/15/2010
Honolulu Rail Transit Division
Editor's Note: After three months of work, a state consultant in early December released a report reviewing Honolulu's financial plan for its proposed $5.5 billion rail project. Civil Beat is taking a closer look at the two analyses and will evaluate the key areas in which they differ: construction revenue, construction costs, operating revenue and operating costs.
When it comes to long-range financial projections, there's only one thing we can be sure of: They're all wrong. But finding out who's closest requires a look at the methodology and assumptions each employed in coming to their conclusions.
We've already explored the city's optimistic projections for tax revenue to pay for construction. This story, the second in our series, explores a $227 million discrepancy in projected construction costs.
Other stories — including Civil Beat's conclusion on the financial future of rail in Honolulu — will follow. A discussion of the topic has already begun.
