Pioneer report: T lost $500M due to Pacheco Law

July 8, 2015 - 1 minute read

Boston Herald – By Matt Stout on July 7, 2015

The controversial anti-privatization law known as the Pacheco Law — which has swirled at the center of the MBTA reform debate — has been a “black hole” that’s cost the beleaguered transit agency nearly $500 million in savings since the late 1990s, according to a new report.

The findings, detailed in a Pioneer Institute report to be released tomorrow morning, provide what author and former state inspector general Gregory W. Sullivan said is among the first looks of the Pacheco Law’s impact on the MBTA.

“This amount of lost savings would have gone a long way to reducing the MBTA costs and allowing it to replace older equipment. Instead the money just went into the black hole of the Pacheco Law,” said Sullivan, who studied two contracts the T approved in 1997 to outsource bus services but were later rejected by the state auditor’s office under the anti-privatization statute.

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