States weighing toll-road options
If turnpikes are so valuable, many say, let
the government make the money instead of leasing
to a private company.
June 26, 2007
By Paul Nussbaum,
Philadelphia Inquirer Staff Writer
Public skepticism about selling or
leasing toll roads is forcing states
such as Pennsylvania and New Jersey to
consider other ways of wringing money
from their turnpikes.
In New Jersey, Gov. Corzine is
preparing a proposal for a "public
benefit corporation" to tap the value of
toll roads without turning them over to
private companies. In Pennsylvania,
legislators are resisting Gov. Rendell's
call for a turnpike lease by offering
plans for the state to extract money
from the turnpike itself.
In Texas, a national leader in
private toll roads, Gov. Rick Perry,
this month signed a bill to limit
private toll roads after vetoing a
tougher moratorium approved earlier by
the legislature.
"There's not a confidence level yet
in this country that toll roads can be
operated in a safe and secure and
efficient manner by private companies,"
said Sen. Raymond Lesniak (D., Union),
the sponsor of a bill to lease New
Jersey's toll roads and allow the New
Jersey Turnpike Authority to match any
private bidder's offer.
Legislators - and their constituents
- are asking a fundamental question: If
toll roads are so valuable, why don't
states act like companies and make all
that money themselves?
So discussions about "privatization"
have become talks about "monetization."
Corzine wants to create a public
agency that could borrow money more
cheaply than a private company and use
that money to help pay off the state's
considerable debt. The money would be
repaid by increasing tolls on the New
Jersey Turnpike and Garden State
Parkway.
In Pennsylvania, Rendell has
continued to call for a private lease,
arguing that it could produce more
money. The Pennsylvania Turnpike
Commission and several influential state
legislators are pushing proposals to
raise money by having the Turnpike
Commission borrow against future toll
increases and new tolls on other
highways.
New Jersey Transportation
Commissioner Kris Kolluri said last week
that the Corzine administration would
come up with its monetization proposal
"in the next several weeks," although
there have been reports that Corzine
won't release his plan until after the
November election.
Kolluri acknowledged that it had
taken longer than expected to unveil a
plan: "Every two weeks, we say it will
be two more weeks."
"It's easier said than done," Kolluri
told a Penjerdel Council transportation
summit meeting in Gladwyne. He said
Corzine had told his financial and
transportation officials to create a
plan for an entity that would "run like
a business, but for the public benefit."
He said a plan would have to provide
"reasonable and predictable" fares,
maintenance and repair standards, and
the assurance that the state would
"control the asset."
Under the current toll-road
operation, Kolluri said, the value of
the roads is locked up. He said New
Jersey's challenge was to "unlock the
value without giving up state control
and state revenue."
"We need money, and lots of it,"
Kolluri said. "Are we asking for a blank
check? No."
Stephanie Mensch, spokeswoman for AAA
South Jersey, said yesterday the auto
club was concerned that Corzine would
withhold his plan until after the
November elections and then rush it
through a lame-duck legislature.
"What we've been calling for is for
the governor to put his plan out early
and have a thorough public
conversation," Mensch said.
Lesniak said he did not think the New
Jersey legislature would act this year.
"If it's just increasing the tolls,
that's going to be a hard sell," Lesniak
said. "I think [a public corporation]
has to show efficiencies and other
improvements."
AAA polls in New Jersey and
Pennsylvania this spring showed most
motorists opposed a private lease of
toll roads. A Quinnipiac University poll
of Pennsylvania voters in March showed a
plurality (49 percent to 41 percent)
supported a proposal to lease the
Pennsylvania Turnpike, if the state
maintained control over tolls and
maintenance.
"I don't think people really
understand it at this point," Mensch
said. "That's why it's important to have
a discussion early."
The New Jersey AAA poll showed 56
percent of voters opposed to leasing
toll roads to retire state debt, with 38
percent in favor, and 24 percent
undecided. A AAA Mid-Atlantic poll asked
Philadelphia-area drivers whether they
favored selling public roads to private
companies as a way to raise
transportation funds (70 percent
opposed), and the AAA Pennsylvania
Federation poll asked Pennsylvania AAA
members to rate support for leasing
existing interstate highways to private
companies and using the revenue on
existing highways and bridges (54
percent opposed, 24 percent supported).
The difference in the results of the
polls by Quinnipiac and AAA may lie in
how the surveys posed their questions
and whom they polled, polling officials
said. The AAA polls surveyed licensed
drivers, while Quinnipiac surveyed
registered voters. Quinnipiac specified
a turnpike lease proposal in which the
state would keep control over toll
increases and maintenance schedules and
use the money for highway and bridge
construction, as Rendell has called for.
|