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California High Speed Rail: More Cost Overruns & Delays? (Los Angeles Times)

According to Los Angeles Times reporter Ralph Vartabedian (see: Cost overruns hit California bullet train again amid a new financial crunch, October 8), the troubled California high speed rail system could face additional cost overruns. According to Vartabedian, “The California bullet train is facing at least another billion dollars of proposed cost increases from its contractors, following a history of sharp cost growth on construction work over the last eight years, The Times has learned.”

The already much delayed start of service could be delayed further: “The current plan would start train operations by 2030, but officials working on the project say privately that it appears difficult, if not impossible, to meet that timetable.” At the time of the 2008, when voters approved Proposition 1-A to authorize $10 billion in bonds, the Los Angeles (Anaheim) to San Francisco (Transbay Terminal) line was to have cost $33 billion and entire route was to have opened in 2020. Current cost estimates are in the area of $100 billion, though that is after scaling the project back significantly and sharing conventional commuter rail tracks in the Los Angeles and San Francisco metropolitan areas.

Joseph Vranich and I authored a report on the system in 2008 (see: The California High Speed Rail Project: A Due Diligence Report). In that report we projected cost overruns of 30% to 60% for the entire system, which was to have included spurs to Sacramento and San Diego. Our projections were embarrassingly low, with the much more modest system now likely to cost more than the full promised system with its Sacramento and San Diego branches, little of which appears likely to be opened even 10 years late.


Wendell Cox is principal of Demographia, an international public policy firm located in the St. Louis metropolitan area. He is a founding senior fellow at the Urban Reform Institute, Houston, a Senior Fellow with the Frontier Centre for Public Policy in Winnipeg and a member of the Advisory Board of the Center for Demographics and Policy at Chapman University in Orange, California. He has served as a visiting professor at the Conservatoire National des Arts et Metiers in Paris. His principal interests are economics, poverty alleviation, demographics, urban policy and transport. He is co-author of the annual Demographia International Housing Affordability Survey and author of Demographia World Urban Areas.

Mayor Tom Bradley appointed him to three terms on the Los Angeles County Transportation Commission (1977-1985) and Speaker of the House Newt Gingrich appointed him to the Amtrak Reform Council, to complete the unexpired term of New Jersey Governor Christine Todd Whitman (1999-2002). He is author of War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life and Toward More Prosperous Cities: A Framing Essay on Urban Areas, Transport, Planning and the Dimensions of Sustainability.

Even Elon Musk is Leaving California Behind

The announcement that Tesla is moving its headquarters to Texas may not be a surprise, but it confirms trends that California’s progressive gentry simply refuse to acknowledge. Tesla, among the diminishing number of large manufacturers based in the state, joins a growing exodus that includes such tech giants as Oracle and Hewlett Packard, financial firms like Charles Schwab, and a host of high-end engineering and business service companies.

None of this will change the “What, me worry?” crowd in Sacramento, fresh off an impressive recall win, and their media claque, who see no “exodus” despite the fact that since 2000, 2.6 million domestic migrants — a population larger than the cities of San Francisco, San Diego, and Anaheim combined — have moved from California to other parts of the United States.

Read the rest of this piece at UnHerd.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Roger Hobbs Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

PwC to Employees: Work for Us, Live Anywhere

According to the The Wall Street Journal, “The accounting and consulting giant PricewaterhouseCoopers LLP says most of its U.S. employees can now live anywhere in the country, in the latest sign that the pandemic is upending traditional working arrangements in a variety of white-collar roles. The article, by Chip Cutter cites similar development among other major companies. For example, Facebook is expanding eligibility for remote work to “all levels of the company.” Those employees not able to obtain permission to work remotely “would be expected to come into the office, at a minimum, 50% of the time.” This means that employees will be able to work remotely up to a maximum of 50% of the time, a practice virtually unheard of among major companies before the pandemic.

The article also references a Massachusetts Mutual Life Insurance Company survey finding that only 41% of pandemic remote workers “looked forward to returning to the office.” A hybrid approach, working both in the office and remotely, was favored by 29%. Ten percent of workers were not comfortable returning to the office “in any capacity.” This is similar to a research by Jose Maria Barrero, Nicholas Bloom, and Steven J. Davis to the effect that many employees will resist returning to the office, out of a “residual fear of proximity” (infection).


Wendell Cox is principal of Demographia, an international public policy firm located in the St. Louis metropolitan area. He is a founding senior fellow at the Urban Reform Institute, Houston, a Senior Fellow with the Frontier Centre for Public Policy in Winnipeg and a member of the Advisory Board of the Center for Demographics and Policy at Chapman University in Orange, California. He has served as a visiting professor at the Conservatoire National des Arts et Metiers in Paris. His principal interests are economics, poverty alleviation, demographics, urban policy and transport. He is co-author of the annual Demographia International Housing Affordability Survey and author of Demographia World Urban Areas.

Mayor Tom Bradley appointed him to three terms on the Los Angeles County Transportation Commission (1977-1985) and Speaker of the House Newt Gingrich appointed him to the Amtrak Reform Council, to complete the unexpired term of New Jersey Governor Christine Todd Whitman (1999-2002). He is author of War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life and Toward More Prosperous Cities: A Framing Essay on Urban Areas, Transport, Planning and the Dimensions of Sustainability.

The Poor Side of Town

The city of Indianapolis is building a new jail and criminal justice center on the southeast side of the city. This means many of the current users of the City-County Building, namely the courts, will be vacating the property. There’s a lot of discussion locally about the future of that building and whether it should be redeveloped. The Indianapolis Business Journal asked me to contribute my thoughts, and I revisited my old idea to demolish the building entirely and redevelop the site.

Monday I was in Washington to participate in a book discussion of Howard Husock’s new work The Poor Side of Town: And Why We Need It. Obviously we talk about the intersection of zoning and housing affordability, but the conversation ranges well beyond that. Here’s a replay of the event:

Read the rest of this piece at Heartland Intelligence.


Aaron M. Renn is an opinion-leading urban analyst, consultant, speaker and writer on a mission to help America’s cities and people thrive and find real success in the 21st century. He focuses on urban, economic development and infrastructure policy in the greater American Midwest. He also regularly contributes to and is cited by national and global media outlets, and his work has appeared in many publications, including the The Guardian, The New York Times and The Washington Post.

High-speed rail advocates tout a 0.008% reduction in pollution

A recent op-ed in The Seattle Times written by transit activists claims a high-speed railroad from Portland to Vancouver B.C. would reduce air pollution. Although the piece doesn’t provide a source, it claims the project would “prevent 960 metric tons of harmful pollutants such as particulate matter and carbon monoxide from entering our atmosphere over the first 40 years of operation.”

Although that sounds like a lot, it is an absolutely minuscule amount. It shows how high-speed rail advocates must grasp at arguments to justify the tens of billions of dollars the project would cost to build.

The authors didn’t cite a study, but mentioned two particular pollutants: particulate matter and carbon monoxide (not carbon dioxide which is a greenhouse gas). They claim a reduction of 960 metric tons of pollutants over 40 years, which amounts to 24 metric tons a year.

How much is that? About 0.0008% of the state’s annual particulate matter and carbon monoxide emissions.

Rail-based transit yields infinitesimal environmental benefits despite the massive cost. Advocates throw in the numbers, and multiply them by 40 years, in the hopes that people won’t check to see if they are meaningful.

This is a consistent pattern from transit activists.

In 2015, members of Sound Transit’s board justified spending billions on extending light rail to Lynwood saying it would reduce CO2 emissions. As we noted at the time, the same amount of emissions could be reduced for about $1 million a year - far less than the cost of constructing, let alone operating, the light rail extension.

The following year transit activist Shefali Ranganathan and the Transportation Choices Coalition implied the third phase of Sound Transit (ST3) would reduce 793,000 metric tons of CO2 annually. The real number was much smaller - only about 130,000 MT. After initially denying it, they were forced to add a footnote to an e-mail (an odd way to correct the record) acknowledging they were misleading.

Transit and environmental activists like to claim their projects will help reduce pollution. A look at the data shows that environmental benefits are little more than marketing afterthoughts, rather than sincere efforts at environmental policy.

This piece first appeared at Washington Policy Center.


Todd Myers is the Director of the Center for the Environment at Washington Policy Center. He is one of the nation's leading experts on free-market environmental policy. Todd is the author of the landmark 2011 book Eco-Fads: How the Rise of Trendy Environmentalism Is Harming the Environment and was a Wall Street Journal Expert Panelist for energy and the environment.