4.3. SR 06-16-2003 - Laserfiche WebLink

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Philip Krinkie State Representative District 53A Ramsey and Anoka Counties May 8, 2003 Minnesota House of Representatives HAND DELIVERED The Honorable Governor Tim Pawlenty 130 State Capitol St. Paul, MN 55155 Dear Governor Pawlenty: Just as former Governor Carlson was misled on the true cost of the Hiawatha LRT, we the undersigned are gravely concerned that you are being intentionally misled on the benefits and costs of the proposed Northstar commuter rail line. Quite simply, we believe the proposed line has no economic justification. We are convinced that a fair, impartial analysis would demonstrate that fact. One such recent analysis we have shows a benefit cost ratio of.47, meaning the public would get only 47 cents of benefit for every dollar invested. This is a vastly different result than the analysis proponents of the project produced. An analysis that was done by an economist who is a proponent of $2 billion in higher state taxes, as is reported in the Star Tribune today. An analysis done using a discount rate much lower than the one the Federal Transit Administration (FTA) requires, which - to nobody's surprise - has the effect of overstating the benefit/cost ratio. This is why the FTA said the following when they rated the Northstar project as "Not Recommended" in their most recent New Starts Report: "However, FTA has serious concerns about the information submitted for this measure; the underlying assumptions used by the project sponsor may have produced an inaccurate representation of the benefits of the project." Were you told at your meeting with the paid proponents of Northstar (and other rail systems) that the FTA had these concerns and that the project was "Not Recommended"? If you were not, it certainly would raise questions about whether or not you are receiving complete and accurate information. You have a vast array of resources at your disposal. We have highly competent state employees who have training in economics and benefit/cost analysis. The University has enormous talent at the Center for Transportation Studies. There are numerous others who would advise you on the true costs of the Northstar project. We urge you in the strongest way possible to withhold support of the Northstar commuter rail line until you have a professional, impartial analysis of the project. Sincerely, tke Beach Drive, Shoreview, Minnesota 55126 ~fice Building, 100 Constitution Ave., St. Paul, Minnesota 55155-1298 FAX (651) 296-3869 TTY (651) 296-9896 Email: rep.phil.krinkie @ house.leq.state.rnn.us (651) 481-8355 (651) 296-2907