Think tank: Anti-outsourcing law costing taxpayers a fortune

July 9, 2015 - 1 minute read

Boston Business Journal – By Eric Convey on July 8, 2015

A libertarian-leaning Boston think tank says in a new report that a state law preventing agencies from outsourcing work has cost taxpayers nearly half a billion dollars over the past 18 years in MBTA bus-related costs alone.

The Pioneer Institute states in its analysis of the the measure commonly referred to as the Pacheco Law that the MBTA could have realized $450 million in savings related to bus maintenance since 1997 if officials had let the agency outsource work.

“Since rejection of the bus contracts and another contract that would have provided free bus shelter maintenance, the T has understandably never tried to contract out any more services,”Pioneer Institute Research Director and former Massachusetts Inspector General Greg Sullivan said in a prepared statement.

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