Private takeover might drive up road tolls

[seafan]

Source: Miami Herald

Florida drivers, already paying higher tolls on most pay-roads in the state, may be hit with new hikes, and not just by the government: The Legislature is considering letting private companies build roads and charge drivers tolls to recoup their investment.
The measure, which could be approved by the state House as soon as today, would also require automatic hikes at all existing toll roads in the state, including Florida's Turnpike, the Sawgrass Expressway in Broward County and the five highways maintained by the Miami-Dade Expressway Authority, including the Don Shula Expressway and the Dolphin Expressway.


House leaders call the measure an innovative way to help Florida pay for future roads, citing estimates that the state lacks the billions it needs to build new highways and expand existing roads over the next two decades.
''I don't think anyone relishes paying more for anything,'' said House Speaker Marco Rubio, who added the bill ``puts the state in a position of great flexibility and ingenuity in dealing with the significant transportation needs we are going to face going forward.''


But Democratic lawmakers, skeptical of the plan, pointed to shortcomings they say could allow private vendors to reap profits from the roads. For example, the proposal says any ''excess revenue'' from the privatized toll roads would go to the state, but doesn't define ''excess.'' House Republicans say that would be decided on each individual road project.

''Privatizing our public roads without having adequate controls in place seems irresponsible,'' said Rep. Jack Seiler, a Wilton Manors Democrat.

Read more: http://www.miamiherald.com/569/story/48925.html

---

Not surprising that the Republican FL House leadership, led by Speaker Marco Rubio, quickly pushes for privatization of Florida's roadways. This will deliberately lead to foreign companies controlling our infrastructure, and extracting heavy profits, which will leave our state.


This has not received adequate public attention that this is happening, yet Republican Marco Rubio hopes he can push it past the Legislature today.

Something to remember about Mr. Rubio is that he is Jeb Bush's star apprentice.

[no_hypocrisy]

1. New Jersey and Pennsylvania are considering the sale of their

respective turnpikes.

[youngdem]

2. Dems should ban this federally

This is nothing but a sale of public property for private gain. The roads will be poorly maintained, the companies will increase tolls constantly and the public gets SHAFTED. The money these companies are paying for the assets they are purchasing is WAY too low. This is a boondoggle. Stop it while we still can.

If a private company wants to build a toll road and can get public approval for the right of way purchases, go for it, but I want a BAN on the sale of public works.

[Gloria]

3. "Globalization" comes home to roost here in the US.....

This is exactly the sort of thing that goes on with public utilities.....and then costs go UP!

[Ghost Dog]

12. Just begging for it, somehow?

http://deniskitchen.com/Merchant2/merchant.mvc?Screen=PROD&Product_Code=SP_RC.shorthist&Category_Code=SP

[madfloridian]

4. Crist may not go along. Who's a big player? Katherine Harris's cousin...

J. D. Alexander. He is due to get millions from one toll road coming up the center of the rural areas of Central Florida.

Yay, Charlie Crist. He is "Unenthusiastic About Major New Toll Roads"

[wordpix]

24. I'm guessing Jebbie has his hand in the pie, too

[ThomCat]

5. Of course it will drive up costs.

They turning over roads to corporations, and specifically giving them permission to raise tolls so they can make a profit from our public infrastructure.
x(

[high density]

6. Libertarian Florida?

Why not just hand these companies the eminent domain rights as well? "We want to build a road here and make money off it. Say goodbye to your neighborhood!"

I don't see how this is good for taxpayers. How many private bridges over the years have required intervention by the state governments across this nation?

[ixion]

7. gee, ya think?

yeah... go figure that. :eyes:

[kath]

8. yeah, what an absolute SHOCKER!

[KansDem]

9. Bank on it! It's the "Attack of the Middle Men!"

That's what this administration is all about: letting connected investors "get in while the gettin's good." They don't do a damn thing but just get in between the government and the citizen to skim their's off the top.

For example: look at what Halliburton's done for(to) the US military on behalf of the US citizen.

edited for spelling

[w4rma]

18. I wish I could recommend your post. This will have to do. (nt)

[fasttense]

10. Not only will tolls go up but new roads

will not be built and old roads will be poorly maintained because they would compete with the privatized roads. By reducing the number of non-toll roads and cutting back on maintenance of existing non-privatized roads, it will force more people to use the privatized roads. Then citizens will have no choice but to pay any exorbitant fees that the all powerful corporation wants to charge. Welcome to the bushes America.

[R_M]

11. The roads should never be privatized.

They are intended for public use and are funded by tax dollars.

[barb162]

15. That's correct. Roads are too important to be privatized

We, the people, paid for those roads through our taxes.

[anotherdrew]

13. might? How could it POSSIBLY do anything else?

where else would the profit come from?

[Rowdy Church]

14. Worst Idea Ever

Building and maintaining our highways should remain something that our government is responsible for doing.

[JCMach1]

16. Florida's economy is fueled by 'fake' growth... i.e. building, immigration and real estate

the vast majority of jobs are low-paying service jobs. It's two Americas. Wealthy retirees (and other $$$) get to drive on nice traffic free roads while the people who clean their houses sit in traffic.

Meanwhile, the State government refuses to put in place realistic impact fees, or taxes that would help slow the growth to a manageable level and pay for the needed roads and infrastructure.

Unsustainable runaway growth will continue. My only consolation is that I will keep my 50 odd acres of field and forest my family has there... at least until some private contractor plows through a major highway.

[rec_report]

17. K&R. n/t

[Javaman]

19. Toll roads were just shoved down our throats here in Austin...

not the least surprised that they will go private now. Scumbag repukes in this state, are probably foaming at the mouth to get that done here.

Are we really that surprised?

[Javaman]

20. Link no longer working nt

[seafan]

22. Now, that's very interesting.... Thanks, I just posted another link. n/t

[seafan]

21. Additional link here

House plan could bring higher tolls

By LLOYD DUNKELBERGER
H-T CAPITAL BUREAU

March 22, 2007

TALLAHASSEE -- Strapped for cash to build new roads, House leaders have offered another bold -- and, some would say, risky -- plan to ease traffic jams around the state.

They want the option of leasing toll roads and bridges to private companies.

.....

It is unclear, however, whether the plan -- like the House's other big initiative, to abolish much of Florida's property tax system -- can make it through the Legislature. But the bill (HB 7033) is moving rapidly through the House and could be up for a final floor vote today.

.....

As an indication of how much money is in play, House analysts estimated the value of the Sunshine Skyway bridge across Tampa Bay at $8.2 billion based on a 50-year lease. That's far more than the toll road now brings in each year.
One industry official told a House committee earlier this year that Florida was "sitting on a gold mine" when it came to the prospect of leasing toll facilities.

But critics say the plan -- which has been used in other states -- is a dicey venture that could lead to costlier tolls for motorists. The bill would allow annual toll increases in a state where toll hikes have been relatively rare on the state road system. The Sunshine Skyway Bridge, for example, has not raised its toll since 1982, one lawmaker said.
"We're accepting a balloon payment of money upfront but we're going to tax our residents in terms of tolls," said Rep. Susan Bucher, D-West Palm Beach. "At some point, those tolls are going to get to be too much."

.....

"You're sitting on a gold mine because you have a lot of toll roads that are assets that have a tremendous capability of generating value," said Carlos Ugarte, an executive with Cintra, a Spanish company that was involved in the leasing deals in Chicago and Indiana.
Ugarte said there was no "magic" in the ability of the companies to pay high prices for the toll facilities while still being able to make a profit over the term of the lease.
It all comes down to the company's ability to raise tolls -- subject to the limits of the contract -- over the lifetime of the lease.

"The problem with tolls operated by governments is that normally there are political issues," Ugarte said.

"No one wants to raise tolls because they won't get re-elected."

This is just another way to soak the people of Florida. Republicans don't like to raise taxes/tolls, so they want to turn that nasty old decision over to their buddies instead, who will collect increasing millions/billions in tolls to turn back into the GOP coffers.

It's really that simple.


It's also very interesting that the link in the OP that referred to Speaker Marco Rubio is now inoperable. Oh, wait. Jeb now lives in Miami and he reads the Miami Herald every day. Can't have his star apprentice associated with this deal. It would be bad PR.

:sarcasm:


(emphasis added)

[wordpix]

23. "the state lacks the billions it needs to build new highways and expand existing roads"--after a

recent visit to FL, all I can say is the development is RAMPANT there. Developers waste every last tree and shrub in each development, reroute waterways and wetlands for their ponds, fountains and golf courses and build house upon condo upon shopping center and now it's obvious they don't have to pay their fair share in taxes while they're profiteering and destroying the wildlife, water and ecosystem.

If I were a FL resident I would fight this like mad. Jebbie has his hand in this development pie, you can be sure of that.

King Dumbass no doubt has told "private investors" like China and the Saudis that if the US can't pay them back for the Iraq War and other messes resulting in BushCo's record deficits, they can have the roads, bridges, national forests, parks---who knows what the dangerous moron has promised?

[dysfunctional press]

25. but the state's citizens WILL be paying for those roads- and a nice little profit for the owners...

or don't they understand the meaning of "tolls" ?

[seafan]

26. Update: Toll-road plan passes on party lines in FL House

Just like clockwork, eh, Mr. Rubio?


Toll-road plan passes on party lines

By Michael C. Bender
Palm Beach Post Capital Bureau

Friday, March 23, 2007

TALLAHASSEE — Private companies could operate most state toll roads and collect increased fees while helping pay to widen highways and build bridges, under a bill the Florida House approved Thursday.

.....


The bill (HB 7033), approved 74-40, was the 10th the House adopted this session and the first to pass on party-line vote. It would let companies lease toll roads or bridges in the state, except for Florida's Turnpike, for up to 75 years.
While lawmakers in the House Republican majority said leasing toll roads to private companies would help reduce current shortfalls in road-building budgets, Democrats warned that such a move could put future state revenues at risk.
"It establishes a horrible precedent that we're going to mortgage off our assets to spend money now," said Rep. Susan Bucher, D-West Palm Beach.

.....


An analysis of the bill by House staff did not estimate potential gains or losses the state could net from the leases, saying the impact on state revenues was "indeterminate, but anticipated to have a positive impact."
The analysis also did not report what the state collects each year in tolls, but did estimate the value of four toll roads, based on current revenue projections plus an annual 2 percent growth in tolls for 50 years. Those values are $3 billion for Alligator Alley; $1.3 billion for the Bee Line Expressway in Central Florida; $6 million for the Pinellas Bayway; and $8.2 billion for the Sunshine Skyway over Tampa Bay.

.....


The House bill was ripped from the pages of House Speaker Marco Rubio's book, Innovative Ideas for Florida's Future. Rubio wrote the book in response to problems in Florida, such as congested roads, and it has become the agenda of House Republican leaders.
"A leased highway provides valuable income to the state to enhance other transportation projects, lowers annual maintenance costs and allows private companies to enhance the quality of service on the highway to the residents and visitors who utilize it," Rubio wrote. He pointed to similar projects in Toronto, Chicago and Indiana.


In January, the Spanish company Cinta, which is involved in the Chicago and Indiana projects, presented the proposal to House lawmakers.
"They told us we were sitting on a gold mine," Bucher said. "They said they could take our roads, they'd cut us a check right now and we'd figure out the terms of the contract later. And that's exactly what this bill says."

.....

I sincerely hope this plan of Republican Speaker Marco Rubio's dies an unceremonious death in the Senate.

[Blue_Tires]

27. this has the makings of pure extortion

usurious at that....Of course, with a few campaign contributions in the right places, this will probably zip through the channels with only token resistance....

I swear, the day is coming when companies will charge us for good weather, or breathing the air...I know there is someone out there working on it now.

[Canuckistanian]

28. 'Might'? It does!

Here in Ontario, we got our first toll road (the 417). It was government owned/operated.

Then, they sold it out.

And guess what happened, even before the ink dried?