WSBT reported that the Citizens Action Coalition filed a lawsuit challenging the Toll Road privatization. I’m away from my normal resources, so I’ll keep it brief. Basically they challenge its Constitutionality. There is an Indiana Constitutional provision stemming from the days of the canal debacle that makes it illegal to use proceeds from the sale of infrastructure on anything other than paying down the “public debt.” A lot of privatization proceeds were used as pork to grease the skids on the deal.
Specifically, Article 10 section 2 of Indiana’s Constitution says:
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.
So, the State will presumably argue that Toll Road privatization wasn’t a “sale,” notwithstanding the fact that the agreement refers to the deal as a sale for federal tax purposes and the reality that the State will have sold a portion of their rights in the property — specifically the property rights to charge and collect tolls for the next 75 years.
Good!
Even though I stand to benefit from the Toll Road sale, I hope to see them win. Does this CAC group have deep pockets to go toe to toe with the State?
If it is a sale as far as the IRS in concerned, I can’t see why it would not be a sale as far as our constitution is concerned…
How typical. When caught red-handed they (Daniels and his cronies) feel that it’s time to play word games.
Like I have been saying if gas prices go above $3.00 and stay there while natural Gas prices also remain near all time highs as air conditioning season begins, the idea of building more interstates and widening arterial roads to primarily support suburban sprawl and real estate speculation will look as pretty stupid ways of growing the Hoosier economy. Meanwhile GM and Ford head towards bankruptcy as sales of SUVs and Trucks plummet throwing more Hoosiers out of work, and just about everyone has to look forward to another winter of record natural gas heating bills. Suddenly those 3000+ square foot homes with cathedral ceilings popping up all other the sprawling Indy metro area will look like the horrible “investments” they are.
Lock up the tollway deal in the courts for a year or more and Daniel’s supposed rational for the sale will soon disappear. A bad showing at the polls this fall will have the Republicans in revolt against their man Mitch.
Oh yeah, lets not forget this summer’s Indianapolis Power and Light trial.
Again I have nothing against selling the toll road. I strongly believe Federal, State and Local governments will have to rapidly stop spending more on road construction as Peak Oil arrives and oil prices continue their march above $100 a barrel. Selling off a likely falling in value public asset could be genius. After all that is what, the depised by the Right-wing, French are doing with their remaining tollroad investments. If Indiana used the $3.8 billion to invest in wind, nuclear or “clean coal” energy, light rail, hybrid/compressed air vehicles or bio-fuel technology like the French and attract 21st century industry to the state I would declare Daniels a bold F’ing genius. But because Daniels is just a unimaginative corrupt BushCo hack and idealogue who wants to use the proceeds to build out his out Rethuglican political machine by rewarding largely Republican construction and real estate interests, I have no illusion of this happening.
The problem with the lawsuit, however if successful, is that it would prevent the state from using the sale of the tollroad to make wise investments in Post-Peak Oil technologies as well. I just hope it delays things long enough for the public to become informed about Peak-Oil and discover the wisdom of making alternative energy investments as a means to attract new jobs to the state.
I thought it might be worthwhile to post the following taken from the complaint filed in St. Joseph County listing the asserted constitutional defects of the “Major Moves” legislation:
“The constitutional violations include the following: The Act contains multiple unconstitutional special laws, in violation of Article 4 §§ 22 and 23 of the Indiana Constitution, including a provision protecting Perry Township, in Marion County from a road construction project (Interstate 69) that was otherwise scheduled to go through it and that would have benefited the remainder of the State, and protecting that portion of Interstate 69 running from Indianapolis to Martinsville from becoming a Toll Road. In addition, the Act and the Lease purport to exempt the interest of Defendants Statewide Mobility Partners and ITR Concession Company from ad valorem taxation, in violation of Article 10 § 1 of the Indiana Constitution. The Act also directs the proceeds of the State’s transfer of the Toll Road into special highway funds, in violation of Article 10, § 2 of the Indiana Constitution and Article 8, § 2 of the Indiana Constitution, which require such proceeds to be used to pay the public debt, to be deposited in the General Fund, or to be deposited in the Common School Fund. The Act and Lease also amount to the grant of an exclusive franchise to a private company to operate a public work, coupled with provisions lending the State’s credit to such private company, in violation of Article 1 § 23 of the Indiana Constitution and Article 11 § 12 of the Indiana Constitution, and the core values that animated the adoption of the Indiana Constitution. The Act also violates both Article 1, §§ 12 and 23, and Article 4 §§ 22 and 23 of the Indiana Constitution because it contains an unreasonably short, special statute of limitations for challenges to the Lease, which does not apply to any other legal action. Finally, the Act violates the Separation of Powers clause of Article 3, § 1 by permitting the Governor and other executive branch agencies to turn any road in this State into a toll road, except for that portion of Interstate 69 running from Indianapolis to Martinsville.”