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Thursday, June 19, 2008

Will Markosek ask for return of taxpayer's money?

Blog readers may recall a study commissioned by House Democrats, championed by Transportation Committee Chair Joe Markosek, paid for with $75,000 of taxpayer funds. The study supposedly said Act 44 is so much better than a Turnpike Lease. The only line of reasoning - a private operator can't borrow as cheaply as the Turnpike Commission.
But Transurban's bonds for HOT lanes on the DC Capital Beltway show that a private operator can borrow as cheaply as the Turnpike Commission. In fact, given that private firms can deduct the interest on bonds from their federal taxes, their borrowing is costing much less.

In other words, the taxpayer-financed study was completely erroneous, whereas I told you so (for a lot less than $75,000. Hint, hint: donate).

The only question remaining is whether taxpayers will get a refund for a completely worthless study.

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