The Toll Road goes into private ownership today.
“There’s been a lot of talk and a lot of controversy about this,” said Sen. Thomas J. Wyss, R-Fort Wayne. “But I think history is going to prove, 10 years from now, that this was all a good idea.”
It’s not 10 years from now I’m worried about. If this were a 10 year deal, it would probably be a good one. It’s 20 and 30 and 40 and 50 and 60 and 70 and 75 years from now as the tolls increase a likely 2 to 4% per year that concern me.
The Indianapolis Star has an editorial on the subject where they make the somewhat ridiculous assertion:
Critics of the plan ultimately lost, however, because they lacked any rational arguments against the deal.
Well, no, critics of the plan ultimately lost because the deal came with enough pork for the Governor to spread around to get the deal passed; barely. There are plenty of rational arguments. Here are two: 1) It’s unfair for the motorists of northern Indiana to be the main source of taxes to build roads in other parts of the state; and 2) Toll Roads are not as conducive to economic development as are free roads.
The Star makes another argument:
Revenue from the lease will be used to substantially improve highways and bridges all over Indiana. And, as Honda Motor Co.’s announcement out of Greensburg on Wednesday illustrates, good roads are a prime resource in helping communities attract good jobs.
Does anyone believe Honda would be creating 2,000 jobs and investing $550 million in Greensburg if the city didn’t sit near I-74?
Here is the better question. Does anyone believe Honda would be locating in Greensburg if I-74 were a toll road? Maybe I’m wrong, but I seriously doubt that major manufacturers find toll highways as desirable as they do free highways. So, while we may have helped the rest of the state, we’ve condemned northern Indiana to an inferior economic development tool for the next 3 generations for the benefit of the rest of the state.
This is a great deal for folks who don’t drive the Toll Road like, presumably, the editors of the Indianapolis Star, but it’s a sacrifice we shouldn’t request of the folks who do.
Doug, you only hint at the real point here: the vast majority of people in Indianapolis – and of course the editors of the Star are included in this – believe that there are two sets of state boundaries. The first set is the TAXING boundaries – those are the same as “Indiana” boundaries if you look at a typical map. The second set of boundaries is the area where money should be spent. That coincides largely with Marion County and, when they feel like they need the votes, occasionally with portions of Lake County. So really the toll deal is a SUPER project, once you understand where money is SUPPOSED to be spent.
Doug,
You are so right. President Eisenhower may have be forgiven placing so much of America’s future on interstates and non renewable fossil fuels.
I commented about this on Tuesday’s post
https://www.masson.us/blog/?p=1543#comments
But Ike knew that true leadership did not mean proposing a hidden tax one segment of the population for benefit of another.
Like I have said before the first part of Tollway debate may be over. Yes, it looks like a public assest serving the more Democratic Northern third of the state is being sold for the planned benefit of staunchly Republican central and far Southwest portions of the state. Like I said I think that stinks. However, personally I have no real problem selling what I strongly believe will be a far less vital and productive public asset in 5 years, highways, shifting the potential assest depreciation risk on to private parties in return for investment capital today. The real issue is how the Tollway money is spent. On more soon to be worthless interstates or next generation energy and transporation technology?
Like I have said before seasonal average gas prices are going up about 25-40 cents each year simply based on lack of world wide swing/reserve oil production capacity. That is not going to change and in fact will only get worse. However, one major crisis, an act of nature or political turmoil and we could be looking at $3.50 – $4.00 a gallon gas overnight.
One major temporary oil disruption and the debate over using the Tollway money to build more interstates will be front page news. Lets say we experience $4.00 a gallon gas for three or four months before the price falls back to around $3. Will lots of Hoosiers then think Major Moves is a really stupid idea? I think so.
NAFTA highway my ass, that is such Reagan era wishful thinking. Right now, what manufacturing jobs are going to Mexico are only as a rest stop before heading to China. Even if that trend reversed itself it will still be far cheaper to ship goods long distances to and from Mexico by rail.
A more realistic vision of what Mitch has planned for the Tollway money was a couple of weeks ago when the Indianapolis Star had a article about runaway real estate speculation and proposed developments in Northern Morgan county. Ah yes more PGA quality golf courses and gated communities. Great idea Mitch, lets blow the Tollway money on making sure Martinsville is another luxury bed room suburb of Indy. Meanwhile next door Johnson county leads the nation in home forclosures due to excessisve suburban sprawl and housing bubble insanity.
Gee how many well connected Hoosier Republicans stand to make a fortune turning Waverly Indiana into the next Carmel/Noblesville. Where is the Indianapolis Star reporting that story???
I was just house hunting in the Indianapoilis area so I know first hand what Noblesville and Carmel are and may we include Brownsburg? What is so striking is that there are indeed are HUGE houses being built ( and many not selling).It gives impression of one segment of population having considerable wealth with the influence that goes along with that.Many other areas of Indianapolis are very modest in comparison,and there are many areas that can be best termed ‘poor’.
Im more familiar with Chicago and suburban areas and there seems to be more a gradual shift economically with less obvious wide differences. Just like Indiana with Indianapoils, people in Illinois are always complaining about Chicago’s Influence.But a BIG difference is Chicago is set in the NE corner of Illinois and Indianapolis is dead center in Indiana.
Perhaps that’s one reason issues seem so polarized in Indiana ( if they are)It’s virtually impossible to ignore what time it is in Indianapolis,and people are forced to conform,even while kicking and screaming. Indy sets the tone for the state in all issues.Many other areas of the state seem ill-defined and lacking influence.Theres no such thing as ‘downstate’ in Indiana as there is in Illinois. The other huge population is in NW Indiana and that is more chicago suburban than outstate Indiana. Its hard even to define how far east Chicago influence extends because we have Detroit,Cincinnati, Louisville all with substantial influences in areas of the state.
The time zone /DST disputes seem more rational and justifiable now. In the context of all of Indiana it’s just one more issue.
This blog has been very helpful in all my so called ‘insights’,and hopefully my comments arent taken as judgmental…better they be ignored..