There are several stories out today about the Democrats alternate proposal to Gov. Daniels’ proposed sale of the Indiana Toll Road to a foreign consortium. (Evansville Courier Press, Fort Wayne Journal Gazette, Indy Star). The Democrats propose doubling the tolls (something that would happen anyway under the sale to the foreign consortium) and using the revenues to take out 20 year bonds, generating $1.6 billion for the state to use for major highway and bridge projects. The State would retain control of its highway.
Is the Democratic proposal good or better than the Republican proposal? I don’t know. But more disturbing is the administration’s snap judgment on the plan. ” State Budget Director Chuck Schalliol immediately dismissed the Democrat[ic] plan.”
I think Rep. Van Haaften makes an excellent point:
One local House Democrat said the administration’s attitude wasn’t helping sway his vote.
“I’m interested in any piece of legislation that is openly debated,” said Rep. Trent Van Haaften, D-Mount Vernon. “But I have serious concerns about the governor’s ‘take it or leave it’ attitude on this.”
The Governor’s hardsell tactics should be raising red flags everywhere. Either way you go, it’s a transaction worth billions of dollars which will affect Indiana for generations to come. You don’t rush to make a decision on such a thing in a couple of weeks. I used a farming metaphor last time, “you don’t eat your seed corn.” Today, I’ll use a carpentry metaphor, “measure twice, cut once.”
On the bright side, maybe Rep. Thompson will slow this thing down by proposing an amendment prohibiting gays from driving on the Toll Road.
Speaking strictly about the Toll Road: obviously, since the Toll Road has lost money the past couple of years, tolls need to be raised. The positive to leasing the toll road for $3.8 billion is that the bonds currently connected to the toll road would be paid off. So no more toll road associated debt to deal with. With the Democrats plan, we increase our debt plus we still have to raise enough money to maintain the toll road. My biggest issue with the lease is the “no compete” clause that would make it difficult for the state to improve state roads that run parallel to the Toll Road.
I don’t normally side with the gov, but I still lean towards his plan. This sort of thing happens in Europe and Australia all the time.
Of course, Northern Indiana won’t be happy about it. I don’t think Northern Indiana will be pleased with anything that involves using the Toll Road paying for road projects further down in the state or increased tolls.
Now the gov’s tactics, that’s a different story. His “do or die” mentality sucks. And I must admit, it makes me laugh. The Republicans courted him hard. They desperately wanted him in office. Now that they have him, they can’t control him. I think the Democratic governors had better luck with the legislature than Mitch. The gov and the legislators aren’t seeing eye to eye (no that’s not a short person joke!). I don’t see Mitch getting re-elected, not with the way he’s going.
Yep.. democraty… isn\’t da right freedom)).
Two things to note.
First, Mitch knows that this probably has to be a my way or the highway thing. If it is put up for discussion it will get screwed up by the legislature. That’s what they do.
Second, Bauer looked like an ass throwing that “plan” out there. Mitch hasn’t been planning this in secret, and having Bauer throw out some very rounded figures, while leaving out many expenses, is just plain dumb. He had plenty of time to put together some figures.
The idea that Bauer can or even wants the toll road to operate at a profit is ludicrous. Sure, you can raise the tolls and float some bonds, but to really get money out of it you need to eliminate the beauracracy that runs it. Being that it is located in his backyard, I doubt Bauer has any intention of doing that. Imagine the headline – minority leader to raise tolls, eliminate jobs.
Northern Indiana’s arguement that the entire state shouldn’t get money for the toll road doesn’t make sense either. The entire state payed for its construction. The entire state has to poney up when the thing doesn’t make money. The rest of the state should be pissed that they are essentially funding a jobs program up there.
A completely workable idea would be to raise the tolls, float some bonds, and privatize the management and operation of the toll road. Me likey.
Democracy is hard.
If Mitch gets it passed his way it is still democracy, albeit with a lot of strategery.
Personally, I think the idea is asinine.
Just a note Doug. The entire last name is Van Haaften. Even though I am from the south, I do not use numerous middle names.
William Trent Van Haaften
Here I am bloviating about “measuring twice, cutting once,” and I can’t even get your name right. I went ahead and corrected the omission of “Van” from your last name in the post. Thanks for the correction.