tcmaroc
01-26-2008, 09:03 PM
http://www.usatoday.com/news/nation/2008-01-26-njtollroads_N.htm
Instead of selling our highways to foreign corporations, Corzine has proposed creating a non-profit corporation to manage toll roads and issue bonds paid back by increasing tolls on some of the nation's busiest highways.
Corzine concedes it would have been easier to seek a highway lease, as other states have done, but said he rejected that approach so the state could continue to own its toll roads and keep all profits earned by them.
That's different from what other states have done:
• An Australian-Spanish partnership paid $3.8 billion to lease the Indiana Toll Road and $1.83 billion to lease the eight-mile Chicago Skyway.
• An Australian company bought a 99-year lease on Virginia's Pocahontas Parkway.
• Texas officials decided to let a Spanish-American partnership build and run a toll road from Austin to Seguin for 50 years.
Robert Poole, the transportation studies director for the Reason Foundation, said such agreements have been common in Europe and has argued private investors can do a better job.
"The private sector is leaner and more efficient than the government," he said.
But Patrick Bauer, the Indiana House's Democratic leader, has decried such deals. He contends Macquarie-Cintra — the Australian-Spanish consortium — can make $133 billion over the 75-year Indiana Toll Road lease, compared to the $3.8 billion Indiana received.
"This is really the point that is different about our model," Corzine said. "Any future payments above and beyond operating costs and capital needs of the roadway will be reinvested in transportation improvements across the state."
The non-profit would be different from the typical agencies states use to run toll roads because it would have an independent, non-political board of directors. Once the agency is up and running, governors and legislators would have no say in its operation.
Richard Raphael, an analyst for Fitch Ratings, hailed parts of Corzine's plans, including keeping the toll roads under state control without a lease.
Instead of selling our highways to foreign corporations, Corzine has proposed creating a non-profit corporation to manage toll roads and issue bonds paid back by increasing tolls on some of the nation's busiest highways.
Corzine concedes it would have been easier to seek a highway lease, as other states have done, but said he rejected that approach so the state could continue to own its toll roads and keep all profits earned by them.
That's different from what other states have done:
• An Australian-Spanish partnership paid $3.8 billion to lease the Indiana Toll Road and $1.83 billion to lease the eight-mile Chicago Skyway.
• An Australian company bought a 99-year lease on Virginia's Pocahontas Parkway.
• Texas officials decided to let a Spanish-American partnership build and run a toll road from Austin to Seguin for 50 years.
Robert Poole, the transportation studies director for the Reason Foundation, said such agreements have been common in Europe and has argued private investors can do a better job.
"The private sector is leaner and more efficient than the government," he said.
But Patrick Bauer, the Indiana House's Democratic leader, has decried such deals. He contends Macquarie-Cintra — the Australian-Spanish consortium — can make $133 billion over the 75-year Indiana Toll Road lease, compared to the $3.8 billion Indiana received.
"This is really the point that is different about our model," Corzine said. "Any future payments above and beyond operating costs and capital needs of the roadway will be reinvested in transportation improvements across the state."
The non-profit would be different from the typical agencies states use to run toll roads because it would have an independent, non-political board of directors. Once the agency is up and running, governors and legislators would have no say in its operation.
Richard Raphael, an analyst for Fitch Ratings, hailed parts of Corzine's plans, including keeping the toll roads under state control without a lease.