Indiana lawmaker calls for more debate on road leases

May 24, 2007

By Maureen Groppe / Indianapolis Star Washington Bureau

WASHINGTON - Governments that want to enter into public-private partnerships on transportation projects similar to Indiana's leasing of its toll road should do so with more public debate and transparency than happened in Indiana, state Rep. Terri Austin told a congressional panel today.

Austin, a Democrat who chairs the state House Roads and Transportation Committee, said the legislature and the public did not have enough time to examine the complex details of Republican Gov. Mitch Daniel's Major Moves plan, which involved leasing the Indiana Toll Road for 75 years in exchange for a $3.8 billion upfront payment.

"It was essentially a fait accompli," Austin said.

The Democrat also complained that prospective bidders had more information than state lawmakers did on the plan's details.

Austin, one of a group of witnesses that also included Pennsylvania Gov. Ed Rendell and representatives of transportation groups, said public-private projects shouldn't be rejected out of hand. But, she said, they deserve far more public debate than they've received.

Thursday's hearing was the third conducted by the U.S. House Transportation and Infrastructure Committee on public-private partnerships. The head of the committee recently sent a letter to states discouraging them from entering into such agreements and warning that Congress could try to undo those "that do not fully protect the public interest."

The U.S. Department of Transportation has created "model legislation" states can use to implement public-private agreements.

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