Plan Expected to Reduce $24.5 Million a Year in Waste and Inefficiencies
Saint Paul, MN — Wednesday, Transportation Chair Jon Koznick (R-Lakeville) will have a Bill Hearing on HF4111, a major public transportation reorganization that will achieve taxpayer savings of approximately $50 million every budget cycle by consolidating four suburban bus operations under the umbrella of Metro Transit.
Current routes to these areas will remain intact, unless deemed "High-Subsidy." Underused High-Subsidy routes were identified as having triple the subsidy of peer routes, some of which were funded at the cost of $207 per passenger, per ride. The average High-Subsidy ride in a February Legislative report is $85 per ride. Those routes are unaffordable and will be eliminated.
Other popular busing routes to these areas will remain intact. An annual report will ensure Metro Transit provides better services at a lower cost.
Chair Koznick gave the following statement about the bill:
"When you combine the administrative overhead for the four opt-out providers, it adds up to 52% of their budgets. Maintaining four separate administrative bodies for carriers that together provide only 4.5% of regional rides is not fiscally responsible, even if they were highly efficient. The High-Subsidy Report brought to light the horrendous waste of millions of tax dollars. Minnesotans deserve better stewardship of their tax dollars, and in this case with better service as well.
The bottom line is that it does not matter what color bus or bus provider people ride on, as long as it can pick them up and get them to where they want to go, while still respecting taxpayer resources."
The bipartisan bill will have a hearing in the Transportation Committee tomorrow, March 11th at 1pm.