Guest MINDSETTER™ Andrew Goodrich: What’s Stalling the MBTA? Hint: The Answer Isn’t More Taxes

Monday, June 15, 2015

Guest MINDSETTER™ Andrew Goodrich

Recently the Baker Administration released its plan to put the MBTA back on a better financial, customer service and public relations footing. This plan has been popular and parts of it have received bipartisan support. Unfortunately, one of the most important parts of the Governor’s reform plan has also been the most controversial – getting rid of the Pacheco Law for the MBTA.

The Pacheco Law, enacted in 1993, is one of the major reasons that wintertime commuters were standing on train platforms wondering just how late their train would be. The law essentially prevents state agencies from hiring private contractors for certain services –such as repairing train cars. This means state agencies, such as the MBTA, are prohibited from finding the best available rates and service providers. Removing the Pacheco Law won’t be a cure-all for the MBTA, but it will be an essential step in the right direction. It will take leadership from both sides of the aisle to make this happen.

Unfortunately, some special interests and out-of-touch legislators have bought into the spin that the MBTA is suffering from chronic underfunding’ and that the system has been ‘neglected’. That’s not the case. In fact in some cases we’ve been overspending on the T, and getting little in return.

Here’s why the Pacheco Law should be repealed. In June 2013 the Pioneer Institute released a study outlining the MBTA’s out of control maintenance costs. The study revealed that MBTA bus maintenance cost per mile was the fourth highest of 379 American bus-transit systems. In 2011, the MBTA’s per-mile maintenance cost was 93 percent higher than the average of all bus-transit agencies in the country running more than 100 vehicles.

We can’t let special interest groups ask for more taxes and more money for the MBTA without substantial reforms. That’s like a business owner who is in debt, whose customers distrust the company for selling a broken product saying ‘if only I had more money, my business problems will be fixed.’ No they won’t. Don’t buy into the farce that more money will solve the root issue.

You know the law needs to changed when even former MBTA Chief Beverly Scott commented on the law in a recent CommonWealth Magazine story, “I am not aware of any a Pacheco-type law anyplace else in the country. So you start out with that fundamental question of why should we even have to have one?”

Because of the Pacheco Law, inefficiency is rewarded and innovation and competition is eliminated. With these laws in place and unions in control, there has been no statewide urgency to streamline operation. Although some minimal efforts have been made to repeal the Pacheco in the last few years, there has been no serious action taken because many on Beacon Hill are beholden to the labor unions that benefit from Pacheco.

Repealing the Pacheco Law isn’t just about saving money, though it will save a lot of tax dollars, it’s also about setting a new tone on Beacon Hill. Once our politicians are willing to standup to wealthy special interests that benefit from the Pacheco Law, we will usher in a new era of leadership. The only way to fix any organization that is failing is with a change in leadership; you can’t fix a failing organization by just throwing money at it.

We need the legislature to make sure that our tax dollars and fare dollars are being spent prudently and without favor, with a focus on maximizing the benefit for the riders. Repealing the Pacheco Law will do something that hasn’t been done in a long time – put riders first.

Once you put riders first, the rest will follow. Luckily the Baker Administration is hoping to do just that.

Andrew Goodrich is the Executive Director of Massachusetts Citizens for Jobs.