ER-16 bearing doesn't fit on steering shaft

I've cut my column jacket back to the firewall (originally a PS car. Now have manual box and Flaming River U-joint/extension). I bought the ER-16 bearing that is supposed to work for the lower shaft support... but it won't go on the shaft!

After cleaning up all the crud and rust, and polishing with emery paper, the shaft is 1.005" in diameter. I couldn't even drive the new bearing onto it! So I spent considerable time trying to enlarge the bearing ID with a brake cylinder hone in my drill press. I also tried wrapping emery paper around the stones and running that in and out for a while. I didn't measure the ID before I started, but it's now 1.0025 and still won't go on :realcrazy:

Sanding down the shaft instead isn't a good option because it's hard to reach the place where the bearing will sit (just inside the jacket). I really don't want to take the column apart again. And it does not have to be an interference fit because there are two set screws on the bearing to secure it to the shaft.

I'm considering taking it to a machine shop. What tool might they use to enlarge it to 1.006 for a slip fit?