Politicians will try about anything to remain in office and to get marginal projects approved so they can proceed. Chicago or New York style is not just a pizza and it is not limited to these two cities. One of the favorite ploys of the politician is to understate the costs on proposed projects. Another ploy is to overstate the income expected from the project. As soon as they state an amount they are tarnishing the reputation of estimating professionals and setting them up for the blame when costs differ!
Entertainment venues are a favorite of this method of funding. It includes professional sports facilities in the major leagues, minor league ball parks, arenas, convention centers and a host of other projects.
It happens for roads, bridges and highways too. Light rail transit systems are currently in vogue. City after city has proposals to spend taxpayer money for systems that are not financially viable. Completed costs are known for several cities yet the politicians continue to quote costs lower than what have been incurred. They quote ridership levels and fees that cannot be met. All of this will burden taxpayers with future liabilities to make up the income difference.
Intentionally understating costs and overstating revenue is nothing new. It happens at the federal, state, county and city levels of government. The next time a project or a budget is proposed, ask the politicians who was responsible for the cost estimates. Was it a firm with true estimating credentials or a consulting firm with a vested interest? Was it the politicians stating the revenues or an independent firm?
Oh, By the Way… Once the project is approved and the project costs roll in, the politicians then act surprised that the costs are exceeding the budget. Imagine that, it is like hearing a 4 year old say “I didn’t do it.”, when asked about a broken toy.
