…Aaand that’s the good news.  It appears to some observers that the California High Speed Rail Authority (CHSRA) may have wanted to obscure that fact from the public.  The San Francisco based engineering firm URS corp. was tasked with preparing a revised cost estimate, and complained that they had been “instructed” by the CHSRA to hold estimates to a baseline established in 2012.  URS said in their March report that the new estimate of $7.13 billion, an increase of $.94 billion was accurate and that “in their professional opinion” CHSRA was incorrectly assigning cost increases to a contingency account.  In response, the Rail Authority sent a letter to the firm asking it to revise it’s report, stating that the estimates were “misleading and not accurate”.  That settles it then.

“The  ultimate cost of the Central Valley segment will be determined by many factors not yet known, …which may explain why URS produced a higher estimate”...”It is noteworthy that over the life of a project, as design progresses, there will be several estimates,” the authority said. “A change in one estimate does not necessarily result in a change to our budget.” – CHSRA Statement

Ahh…the “Living Breathing Budget” theory.  The California taxpayer may now rest easy.