https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
    • Latest videos
    • Product Guides
  • Resources & Events
    • Back
    • Resources
    • Webinars
    • White Papers
    • IWCE 2022
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
    • Latest videos
    • Product Guides
  • Resources/Events
    • Back
    • Webinars
    • White Papers/eBooks
    • IWCE 2022
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
  • Magazine
acc.com

Public Works & Utilities


Toll Roads Hit Speed Bumps

Toll Roads Hit Speed Bumps

By Eric Kelderman In 2006, Indiana Gov. Mitch Daniels (R) triggered a toll-way mania when he signed a whopping $3.8 billion deal to lease the 157-mile
  • Written by American City & County Administrator
  • 5th April 2007

By Eric Kelderman

In 2006, Indiana Gov. Mitch Daniels (R) triggered a toll-way mania when he signed a whopping $3.8 billion deal to lease the 157-mile Indiana Toll Road to a private investment firm for 75 years.

But this year, public and political opposition forced Daniels to shelve two smaller proposals for privately built and managed toll roads in the Hoosier State.

Daniels is not the only governor whose transportation funding plans are being detoured. As states increasingly look to toll roads and public-private partnerships for quick road-funding fixes, the public, consumer advocates and motorist and trucking associations are putting up barriers to pay-as-you-drive proposals.

Grassroots activists and state legislators are trying to put the brakes on plans by Texas Gov. Rick Perry (R) for a 4,000-mile network of toll roads. Democratic Gov. Ed Rendell’s initiative to lease the Pennsylvania Turnpike was instantly panned by the state Turnpike Authority and union workers who operate toll booths on that road. A majority of New Jersey residents oppose Democratic Gov. Jon Corzine’s idea to lease the Garden State Parkway to cut the state’s debt or lower property taxes, according to a January poll .

In 2006, Colorado residents persuaded lawmakers to bar private companies from using eminent domain to claim land for road projects – a measure aimed at killing a 210-mile toll road across the state’s eastern plains.

Adding tolls to an existing road is just a way of hitting up taxpayers a second time for a stretch of highway, argues Clayton Boyce, a spokesman for the American Trucking Associations (ATA). Moreover, private companies may compromise on road maintenance to boost profits in these ventures, said Boyce, whose organization has joined forces with five other groups to discourage privatization of roads nationally.

The growing opposition to tolling and privately leased roads is part of a bigger dilemma for states: How to pay for fixing the nation’s aging and overcrowded highways and Interstates.

The federal gas tax of 18.4 cents per gallon, which pays for more than 45 percent of the nation’s transportation infrastructure, has not been raised since 1993 and will fall $11 billion short of planned road projects by 2009, according to a new report by the American Association of State Highway and Transportation Officials (AASHTO). At the same time, the cost of building and repairing roads is skyrocketing: Between the last gas-tax hike in 1993 and 2015, construction costs will have increased by more than 70 percent, the report stated.

To bridge some of the road-funding gap, states are fast turning to toll roads and considering leasing those roadways to private companies in exchange for cash up-front to build more infrastructure.

In 2005, tolling earned $7.7 billion, which was 5 percent of highway revenues nationally, AASHTO reported. Tolling could increase to 9 percent of highway funds over the next decade, according to the organization’s estimates.

Robert Poole, of libertarian Reason Foundation , favors leases over raising the gas tax to fund road projects. He says there’s a greater value to leasing deals because public-private partnerships provide big lump sums of money that can pay for other large state projects. By comparison, gas taxes trickle back to the states in smaller amounts.

Daniels’ 2006 deal to lease the Indiana Toll Road is earning about $6 in interest every second to pay for a host of future highway projects. The governor’s scuttled proposal to allow a private firm to build and operate a $1 billion bypass around Indianapolis would have helped pay for a new 142-mile Interstate linking the state capital and Evansville, Ind.

But the Indiana Toll Road agreement was unpopular with residents and only narrowly was approved by a Republican-controlled Legislature last year. The controversy helped Democrats win a majority in the state House of Representatives in the 2006 elections.

Rendell has said that leasing the Pennsylvania Turnpike could be worth as much as $30 billion, giving the state $1.7 billion immediately and as much as $965 million annually for transportation.

However, the Pennsylvania Turnpike Authority , a state agency that operates the state’s 67-year old toll road, has launched a campaign to counter Rendell’s plan and recommends greater borrowing and a new tolling scheme to boost revenues. AAA Mid-Atlantic also opposes leasing the toll road and released a March poll that showed 70 percent of drivers agreed.

A Quinnipiac University poll , however, found 49 percent approved of leasing the turnpike if the state has control over toll prices and maintenance, with 41 percent opposed.

“The governor has said he will not make any deal that is not in the best interest of the state. He’s not giving up control of the roads or the workers,” said Rendell spokesman Barry Ciccocioppo.

In Texas, the state Senate is considering several bills to scuttle public-private partnerships for toll roads. The most recent action is a measure, attached to the chamber’s version of a must-pass state budget, that would give the state’s five-member Budget Board oversight of any public-private road partnerships in an attempt to block Perry’s plans.

Source: www.stateline.org.

Tags: ar mag Public Works & Utilities

Most Recent


  • sustainability
    With adequate data, a local government’s sustainability goals are within reach
    To reach ambitious green environmental goals, cities and counties need good data, says Jennifer Robinson, global government strategic advisor at analytics provider SAS. “Sustainability requires comprehensive knowledge of what has happened, what is happening, and what may happen. Collecting data and sharing it between departments and with other organizations is one of the key elements […]
  • metal building
    Metal buildings can be a lifesaver for local governments needing to expand
    In 2023, cities and counties are relying on metal buildings to help them meet their infrastructure needs and requirements, says Harlem, N.Y.-based architect and educator Victor Body-Lawson FAIA, founding principal of Body Lawson Associates Architects & Planners. “Yes, metal building systems are ideal for needs and uses like infrastructure, storage, recreation facilities, industrial warehouses and […]
  • Transportation department to invest $94M into projects promoting innovation, safety
    As transportation technology evolves at a breakneck pace—from self-driving cars to electric vehicles—the infrastructure and innovation that supports it must evolve faster. From the American Rescue Plan Act to the Bipartisan Infrastructure Law Act, the federal government has proven itself to be a reliable partner for local governments. Most recently, a $94 million grant opportunity […]
  • cybersecurity
    How state and local CIOs can prioritize security, cloud and legacy systems
    NASCIO recently released the annual State CIO Top Ten Policy and Technology Priorities for 2023—and cybersecurity and risk management, legacy modernization and cloud services rank near the top. With rising cybersecurity concerns, a growing emphasis on upgrading legacy systems, and a desire for more flexible, cloud-based technology, CIOs are focused on solutions that efficiently and […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • NLC releases State of Cities 2021 report
  • How local governments can get ahead of the infrastructure wave: Strategies to mitigate risk
  • Prioritizing rapid restore leads to stronger ransomware attack recovery
  • Ultrafast electric vehicle charging will propel local governments into the future

White papers


Digital Government Service Delivery – A Guide for Buyers

23rd February 2023

Modernizing government services for today’s resident expectations

24th January 2023

Preparing Your Community Now for the Next Generation of Older Adults

18th October 2022
view all

Webinars


Future-proof Your State and Local Government Finance: 5 Key Trends for 2023

6th February 2023

How To: Evaluate Digital Government Service Delivery Technologies

23rd January 2023

Using Technology to Enhance Communications

29th November 2022
view all

PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

GALLERIES


Gallery: America’s top 10 bicycle-friendly cities

20th March 2023

Gallery: Top 10 hardest working American cities

8th March 2023

Gallery: Top 10 least expensive American metro areas

24th February 2023
view all

Twitter


AmerCityCounty

IWCE 2023: Enhanced bandwidth and cybersecurity in the face of natural disasters dlvr.it/SldY7W

28th March 2023
AmerCityCounty

With adequate data, a local government’s sustainability goals are within reach dlvr.it/SldTc9

28th March 2023
AmerCityCounty

Overcoming worker shortages in public sector amidst growing demand dlvr.it/SlYssG

27th March 2023
AmerCityCounty

Report: Renters living at or below the poverty line face a ‘severe shortage of housing’ dlvr.it/SlR6rb

24th March 2023
AmerCityCounty

Report: Technology is encouraging unprecedented collaboration in local government organizations dlvr.it/SlNYqx

23rd March 2023
AmerCityCounty

Metal buildings can be a lifesaver for local governments needing to expand dlvr.it/SlMCV1

23rd March 2023
AmerCityCounty

Transportation department to invest $94M into projects promoting innovation, safety dlvr.it/SlKRf7

22nd March 2023
AmerCityCounty

How state and local CIOs can prioritize security, cloud and legacy systems dlvr.it/SlK7H1

22nd March 2023

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.