The Pacheco Law has cost the MBTA more than $450 million – here’s the evidence.
The report has three major findings—each of which demonstrates that the Pacheco Law has cost the MBTA more than $450 million since it blocked the MBTA from signing two contracts in 1997 to purchase 38.0 percent of its bus and bus maintenance service from private companies. A comparison of the financial terms of the two five-year contracts that were barred by the Pacheco Law with the actual cost incurred by the MBTA over the five year term demonstrates conclusively that the MBTA spent $80.4 million more from 1998 to 2002 than it would have had it been allowed to execute the contracts as approved by the MBTA Board of Directors. National trends and data provide further conclusive evidence that the Pacheco Law has cost the MBTA hundreds of millions of dollars. The state’s own Regional Transit Authorities (RTAs) illustrate the financial advantage of competitively procured bus service.
Download Report: The Pacheco Law has cost the MBTA more than $450 million - here’s the evidence.