The Northwest Indiana News reports that the Citizen’s Action Coalition is considering a legal challenge to the toll road deal. They are trying to raise $30,000 for legal fees before the April 13 challenge deadline.
According to a CAC release reported by Taking Down Words:
A legal analysis of HB 1008 by an Indianapolis law firm indicates the Major Moves legislation, which authorizes the lease of the Indiana Toll Road, and the Lease Agreement together violate the Indiana Constitution.
Key provisions of the legislation and Agreement provide that the ‘net annual income’ derived from the Indiana Toll Road, a public works belonging to the State, shall be retained by the private entity, and that a significant portion of the lump-sum payment shall go to fund transportation projects rather than being placed in the State General Fund to be applied to reducing the public debt.
Article 10, § 2 of the Indiana Constitution prohibits such an arrangement and mandates that net annual income from public works to be used to pay down public debt. This analysis is born out by a textual and historical review of the constitutional provision as well as a review of Court cases interpreting the provision.
Article 10, Section 2 of the Indiana Constitution cited above states:
Section 2. All the revenues derived from the sale of any of the public works belonging to the State, and from the net annual income thereof, and any surplus that may, at any time, remain in the Treasury, derived from taxation for general State purposes, after the payment of the ordinary expenses of the government, and of the interest on bonds of the State, other than Bank bonds; shall be annually applied, under the direction of the General Assembly, to the payment of the principal of the Public Debt.
That would seem to cast some doubt on some of the pork larded onto HB 1008 to get the toll road privatization bill through the legislature.
Doug,
I read in the Washington Times Herald the State signed the toll road lease agreement. This was done before the 15 day period that was set aside for any challenges to the toll road agreement expired. The state budget director stated this was like filing taxes early. How can this be? This is typical of the way this Governor does business and he needs to be stopped.
Daniels is most likely counting on the idea that he leased the toll road and did not sell the toll road. Typical of the way the guy functions!