The Taxpayers Legaue of Minnesota

A non-partisan, non-profit grassroots taxpayer advocacy organization for Minnesota

DM&E Decision a Victory for Taxpayers PDF Print E-mail
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FOR IMMEDIATE RELEASE

February 26, 2007

Contact: Phil Krinkie

Ph: (651) 294-3590 ext 202

DM&E Decision a Victory for Taxpayers

St Paul—Taxpayers got a well-deserved break today when the Federal Railroad Administration denied a loan application by the Dakota, Minnesota and Eastern Railroad (DM&E).

The proposed loan of $2.3 billion appeared to be sure thing just a few months ago, but after a concerted campaign by taxpayer watchdog organizations, the Mayo Clinic, the railroad union, and cities along the route the loan was accorded greater scrutiny by the public and politicians.

“This was a great victory for taxpayers,” said David Strom, a spokesman for the Taxpayers League of Minnesota. “Even the most vigorous rail boosters had to admit that this loan was a dicey proposition; the Federal Railroad Administration saw that DM&E was an unacceptable financial risk, and scrapped the loan.”

“This whole process of loaning out billions of taxpayer dollars without Congressional approval is a bad idea. If it weren’t for the ruckus caused by opponents of this project, I have no doubt that DM&E would have gotten the largest federal loan in American history with hardly a whisper spoken about it.

“That has got to change,” Strom concluded.

The Taxpayers League has opposed and worked against the DM&E expansion for several months, and has participated in forums with such luminaries as former Vice President Walter Mondale to gin up opposition to the loan.

The Taxpayers League is Minnesota’s largest taxpayer advocacy organization.