Austin, Texas’ Cap Metro to privatize bus routes

Posted on June 29, 2011

AUSTIN, Texas — Capital Metropolitan Transportation Authority board members voted unanimously to outsource all bus routes to a private company, statesman.com reported. A Texas Transportation Institute analysis found that the agency could save $71 million by 2020 and almost $230 million by 2032 by outsourcing all of its service, a study that assumed lower pay by private contractors.

The decision will affect about 810 union workers and could spark official complaints to federal regulators that could threaten $50 million in federal grants. For the full story, click here.

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