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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (40537)	1/21/2010 8:50:39 PM
From: tejek	Read Replies (2) \| Respond to of 71588

Back in 2005, then-Transportation Secretary Mary Peters stunned the transit world when she adopted a “cost-effictiveness” rule for federal transit grants to new rail projects. In order to qualify, transit agencies had to receive a “medium” cost-effectiveness rating from the FTA, meaning they had to cost less than about $24 for every hour they would save transportation users (either by providing faster service to transit riders or by reducing congestion to auto drivers). This wasn’t much of a requirement: a true cost-efficiency calculation would rank projects, but under Peters’ a project that cost $0.50 per hour saved would be ranked the same as one that cost $23.50 per hour. But any projects that went over the $24 threshold (which was indexed to inflation — by 2009 it was up to $24.50) were ruled out. Assumging that this approach is worth looking at.....which I doubt, tell me how you know $24 is a reasonable number?