All Aboard Florida Doomed to Financial Failure
Posted on February 19, 2015
Watch CARE FL’s very own Brent Hanlon on WPBF 25 News at 6:00 as he discusses Dr. Friedman’s economic analysis of All Aboard Florida.
Click here to see the clip.
All Aboard Florida doomed to financial failure, economist says
Opponents of project say ticket cost could exceed cost of flight
Original Story: WPBF ABC 25 News
HOBE SOUND, Fla. —A study commissioned by opponents of All Aboard Florida showed that the proposed train would have to charge $242 for a one-way ticket between Miami and Orlando to pay off its projected debt.
That’s about $145 more than a one-way plane ticket between the two cities, according to former White House economist John Friedman, an associate professor of economics, international affairs and public policy at Brown University.
Friedman was hired by Citizens Against Rail Expansion, a coalition of residents, organizations and community leaders.
Friedman estimated that All Aboard Florida would generate losses of about $100 million per year.
“Imagine a family of four that wants to spend a day or two at Orlando going to Disney World. It doesn’t sound affordable at all,” Citizens Against Rail Expansion treasurer Brent Hanlon said.
All Aboard Florida has not said how much it plans to charge for tickets.
All Aboard Florida is a privately funded project, but it is partially funded by tax-exempt bonds, and Friedman said taxpayers will lose $37 million to $60 million per year by not collecting those tax monies.
Citizens Against Rail Expansion said it’s sharing the study with the U.S. undersecretary of transportation.
“We are going to take this very (seriously), and we are going to do what we need to do to protect our citizens in the corridor,” Hanlon said.