Niki Kelly, writing for the Fort Wayne Journal Gazette, has a story reporting that key House and Senate Republicans have crafted a compromise on the Indiana Toll Road privatization bill they believe can win final approval in both chambers. The key seems to be giving everybody what they want and pork, lots of it.
The reported compromise commits $4.23 billion of the $3.85 billion payout. State budget director Chuck Schalliol says we’ll make up the difference through interest. He figures we can still cover the first 8 or 9 years of the state’s 10 year road plan, maybe all ten if we stretch.
Northern Indiana counties get a pile of money. The state picks up the tab on a toll freeze until the electronic tolling is enabled. After that motorists can get an electronic toll road pass that provides a 40% discount on tolls. On I-69, the Governor would have to get legislative approval only if he wanted to route I-69 through Perry Township in Marion County and if he wanted to impose tolls north of Martinsville. If the interstate routes around Perry Township and imposes tolls only between Evansville and Martinsville, he can sell a toll road concession without further approval.
So everybody wins. Except, of course, for the motorists of northern Indiana. And their Senators and Representatives in northern Indiana if they defy the will of their constituents and pass this unpopular bill at the insistence of the Governor who is basically radioactive in northern Indiana. And, pretty much all Hoosiers who live here for the last 65 years of the 75 year lease. So, almost everybody.
As an under-30 resident of Indiana who’s at least hoping he’s here most of the next 65 years, I’m OK with the idea of the lease. What irks me is the state managing to over-commit its resources by $380 million. And I’d rather the Next Generation fund be $1 billion. I figure the legislators will go after the principal in 15 years anyway, just based on the lottery money example.
The big show-stopper for me is not routing I-69 through Perry Township. It’s the most sensible solution for the state of Indiana. I hope in 2007 the issue is revisited, and it will be able to pass when not tied to the Toll Road. The NIMBY’s in Perry Township played the game well to tie I-69 to the Toll Road in order to get a temporary victory. When SR37 is upgraded in a few years to handle growth in Johnson/Morgan counties, the businesses and residents protesting will get moved anyways so the road can be built to interstate standards.
That’s politics, I guess.
I think the big losers are the kids who live in Northern Indiana and will be commuting adults in about 20 years when the tolls are high, and the money from the sale is all gone.
That’s where the Legislature is going wrong – not in the lease, but in the fact they’re spending all the money up front. I’d have more respect for the Democrats if they’d protest against the lease on the money aspect instead of the “We don’t trust them durn furriners” aspect.
Doug, did the provision prohibiting fixing up US20 stay in the compromise Major Moves bill?
You know, a forward-thinking legislature would look at the situation and would give some money to start investigating mass-transit options in the northern corridor (trains, monorails, express buses, etc). Unfortunately, this is the Indiana state legislature, so the odds of such happening are low.
The US 20 provision is part of the contract between the State and the durn furriners. If that was changed, I’m pretty sure the whole thing would have to be rebid since the company, understandably, does not want US 20 turned into a competitive alternative to paying the tolls.
The turnpike commission has to look at alternative ways to fund the project and public/private partnerships are one of many options. The Macquarie Group has built and purchased other roads throughout this country, as well as in Germany and Spain.