Indiana newspaper reflects on toll road lease
Editorial from The Indianapolis Star citing Pennsylvania's consideration of leasing the Turnpike. Here's the last five paragraphs with some of [OUR COMMENTARY] included:
Indiana's lease has enabled the state to jump start long-delayed road and bridge projects. It also had an unexpected benefit this year: Standard & Poor's, citing the state's improved financial outlook, upgraded Indiana's credit rating to triple-A, a development that will carry substantial savings for taxpayers. [AS AN FYI, THE TURNPIKE COMMISSION'S CREDIT RATING WAS DOWNGRADED BY TWO COMPANIES, FITCH AND STANDARD & POOR'S.]
As noted, the Pennsylvania deal has run into strong opposition. Rendell calls the proposal a "decided underdog'' in the legislature. Similarly, critics in Indiana, especially Democratic partisans, continue to attack the Toll Road lease. [REPUBLICAN PARTISANS ARE ALSO ATTACKING THE LEASE BECAUSE THEY DON'T WANT TO GIVE UP THEIR GRAVY TRAIN OF PTC JOBS AND BOND COUNSEL BENEFITS EITHER. THIS ISN'T A PARTISAN ISSUE, ITS A POWER ISSUE.]
But opponents neither there nor here have been able to credibly explain how to pay for road improvements without benefit of the lease revenue. Leaders in both states long lacked the political will to raise either taxes or tolls to the level necessary to adequately maintain the highways, let alone fund other projects. [NOR SHOULD THEY. TAXES AND TOLLS ON CURRENTLY "FREE" HIGHWAYS ARE NOT THE SOLUTION TO OUR TRANSPORATION PROBLEM. THEY WILL ONLY BE STOP-GAP MEASURES AND WILL SERVE TO EXACERBATE THE PROBLEM, NOT SOLVE IT.]
Indiana's lease also carried the benefit of an upfront payment. The state not only pocketed $3.8 billion immediately, right away earning substantial interest, but it also was able to start work on road projects earlier than otherwise would have been possible. The accelerated roadwork pays off in reduced construction costs. [THIS COULD BE TRUE IN PA AS WELL. THE KEY IS TO SPEND THIS MONEY PROPERLY, NARROWLY, AND STRATEGICALLY. WE KNOW SOME WILL SAY THAT SIMPLY CAN'T BE DONE IN HARRISBURG. AND WE DON'T DISAGREE. HOWEVER, WHAT OTHER CHOICES DO WE HAVE? THE OPTIONS REGULARLY PROPOSED BY FOLKS USUALLY ON OUR SIDE ARE SIMPLY UNVIABLE OR NOT PART OF ANY SERIOUS DISCUSSION. THE ONLY CHOICE BEFORE US IS MAKING OUR TRANSPORATION FUNDING DEPENDENT ON THE TURNPIKE COMMISSION'S BONDED DEBT OR ON A LEASE OF THE TURNPIKE TO A PRIVATE OPERATOR. PERIOD.]
Two years later, the Toll Road lease continues to look like one of the smarter moves Indiana has made in a long time. So smart, in fact, leaders from other states want to travel the same path. [WE'LL HAVE TO WAIT AND SEE WHETHER WE CAN CHALK UP A "SMARTER MOVE" IN PA OR NOT.]
4 comments:
Sorry but Indiana has almost spent all of its money. It is a bad deal and so is the lease of the PA Turnpike. The Commonmwealth foundation will keep taking the money from Albertis and the Penn Partners as a way to fund your campaign for the Turnpike lease.
Indiana is the only state with a fully funded transportation plan. The fact it "has almost spent all of its money" was by design to take care of the pressing transportation infrastructure needs. It was part of the plan to spend the money up front--a policy decison that may or may not be a good one for Pennsylvania.
As for funding our educational efforts about leasing the Turnpike, we'll take your voluntary contribution too. That's all we can depend on because we don't have toll booths or compulsory unionism to force anyone to underwrite our efforts.
I agree with anonymous, if the lease deal in Indiana was so good for the state, why does a running governor think the opposite? I mean come, if the state is doing so well why are lawmakers no so happy about the deal (not all, because there are some in the state who think the deal is working, but some)? It is so obvious here that this group is being paid by Abertis, and the funny thing is the defense (for the lease) has strayed away from the actual infrastructure issue. What a shame...
You can’t think of any reason why a candidate for governor criticizes the policies of the governor she is running against (and according to polls, getting trounced by)? Really, no reason?
Congratulations, Anonymous #2 (if in fact you are a different person from anonymous #1, I have no way of knowing), you win the dumbest comment award.
I welcome you to debate us on the issues, you can even do so as a anonymous commenter, so you don’t have to admit it if you work for the Turnpike Commission. Since we first proposed leasing the Turnpike (before Governor Rendell got on board, and long before Abertis appeared on the scene):
-We have compared the financial benefits to the state under Act 44 and the Turnpike Lease (and, you will note, been critical of the suggested rate of return put out by Governor Rendell and Abertis; so much for being “on the take”).
-We have analyzed the debt Pennsylvania will retain under Act 44.
-We have been critical of corruption at the Turnpike Commission (for most of our 20 years).
-We have presented the facts about the Turnpike lease agreement and testified about the concerns lease opponents have.
-We have analyzed the impact of Act 44 and tolling I-80 on our infrastructure, and assessed where I-80 tolls will go.
-We researched public private partnerships in the US and across the globe.
Your attacks on us must be based on several factual errors you found in our research and analysis. Instead of trying to slander us, please elaborate on these errors, I am curious to learn what they are.
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