Mark Snyder said a couple of things that I think may not be correct.

He doesn't like the idea of transit being privatized.  The idea of
competitive contracting is an alternative, where MT would set standards
and let private companies do the work, subsidizing to a lesser degree
than for regular MT operations.  MT already contracts out some routes.

He talked about how MT won the bidding against private companies for
operating the lrt.  He thinks that it's because they weren't willing
to accept a profit margin low enough to compete with MT.  That's
probably true because they owe a duty to their shareholders to make a
profit, while MT can lose money.  MT can also divide up their overhead
costs between all of their operations so as to favor lrt.  I also
wonder whether the private companies had an option to cut back on service
if the ridership wasn't up to predictions, while I seem to remember that
the news article talking about the results of the bidding said that MT
coould always reduce service, as they do with buses.  But I didn't
see the details of the RFP or the bids.

He also says that the government-run Minnesotacare has administrative
costs of 2% while he says that the non-profit HMOs get more than 10%.
I don't remember reading such high figures for the HMOs in the news
reports on their annual filings.  Of course, some people claim that
costs are being hidden.  In addition, isn't MinnesotaCare actually
administered by HMOs such as HealthPartners ?

The question of high cost consultants is a good one.  Look to the portion
of the lrt budget that went to consultants.


Visit www.EffectiveTransit.org

The Independent Unsubsidized Voice of
Citizens for Effective Transit in the Twin Cities  (no lrt)

* lrt isn't a potato chip, you can stop at just one *

Bruce Gaarder
Highland Park  Saint Paul  MN
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