MIG awaits green light to take its toll on Texan roads

THE Sydney-based Macquarie Infrastructure Group will know tonight if it has garnered an early slice of the vast toll road riches up for grabs in Texas. The announcement by the Texas Department of Transportation of the winning bidder for State Highway 121 - a planned 42km toll road in northern Dallas, one of the fastest growing areas of the US - shapes up as the first big test of MIG's decision to all but jettison its Australian routes for a shot at the far larger but less developed US markets.

Texas, which is forecast to double its population to 50 million by 2030, is regarded as the toll road El Dorado, with the SH121 project the first in an estimated $US250 billion ($315 billion) worth of roadwork and toll road administration to be privatised in the Lone Star state over the next decade.

The biggest prize is expected to be the new Trans-Texas Corrider, a toll road that would stretch from the Mexican border to Oklahoma and utilise some existing freeways and toll roads.

An MIG-led consortium is one of five shortlisted bidders for the rights to build and operate the toll road for 50 years. The deal is expected to net Texas an upfront payment of about $US2 billion and a share of toll revenues.

Like many states, Texas is reluctant to raise taxes to address its chronic shortfall in transportation infrastructure and has been forced to go to the private sector.

All up, more than 20 states are considering the sale or lease of major highways. They include Oregon, Indiana, California, Utah, Colorado, Illinois, New York, New Jersey, Delaware, Pennsylvania, Virginia, North Carolina and South Carolina.

But opposition to public-private partnerships, also known as PPPs, can be strong, especially in the case of public assets that are debt-free.

Indiana Democrats already raiding the fund

House OKs Spending Toll-Road Interest On Local Streets

Opponents Say Money Was Meant For Other Projects

Mike Smith, Associated Press Writer

POSTED: 3:10 pm EST February 26, 2007

INDIANAPOLIS -- The House narrowly approved legislation Monday that would steer $60 million in interest from the Indiana Toll Road lease to local road and street construction.

The Democrat proposal, approved 51-48 along a near straight party-line vote, was among dozens of bills the General Assembly considered before a Wednesday deadline to pass legislation from its house of origin and send it to the other chamber.

Among bills still awaiting votes were those that would increase cigarette taxes by 25 cents per pack to provide health insurance to more Hoosiers, and legislation that would allow Republican Gov. Mitch Daniels to outsource the Hoosier Lottery to a private vendor to help fund higher education initiatives.

One House Republican -- Rep. Jonathan Elrod of Indianapolis -- joined 50 of the chamber's 51 Democrats in passing the bill that would spend $60 million on local roads over two years. The money would come from interest earned from a construction fund created when Daniels leased the toll road in northern Indiana to a private, foreign venture in exchange for an upfront payment of $3.8 billion.

Opponents of the bill authored by Rep. Terri Austin, D-Anderson, said that money and its interest were intended to pay for projects already identified in a 10-year plan by the Indiana Department of Transportation. They said diverting it for other uses would set a bad precedent.

The bill that authorized the toll road lease already set aside $150 million over two years for local road construction, but Austin said money for that was still woefully lacking.

"Critics of this approach suggest it is the camel's nose under the tent," said Austin. "I don't see it that way. I think it's being fiscally prudent."

Rep. Trent Van Haaften, D-Mount Vernon, said the lease account in question had earned more than $118 million since July 5 and the state could afford to "throw a crumb" to needed local road construction.

This is what happens when politicians misappropriate gas tax revenues for "mass transit" and funding social programs instead of paying for road infrastructure. The advent of toll roads means we get to pay taxes on gasoline that get diverted to everything except the road maintenance for which they were intended AND we get to pay tolls to people who actually provide a road as a service.

I wouldn't mind the toll if we could remove the government thievery at the gas pump. It is fraudulent taxation. Right up there with AMT and social security.

Its almost (no, I recant, it is) like the way we were sold the lottery...

Of course I opposed it back then, and have not played it, (except for that first scratch off ticket game, but that doesn't count!;-)...)

The lottery was sold to us based upon the need to fund the state education and other "things" blah, blah, blah...

That general fund where the "money" goes literally has more hands in it than a two year olds birthday cake!

So, I am not surprised at these revelations about the way "things" are funded and sold to the citizens of this state...

And I believe we are way beyond stopping any of this or any other revenue generating project, no matter who it displaces or effects...

I just got through observing a city counsel meeting last night for the City of Manvel...

Seven Oaks Development purchased 2500 acres for a subdivision development that butts right up against my sister's property in that area...

Folks that moved out there for the semi-rural atmosphere didn't bargain for this and are fighting a losing battle against the city (which is broke, and a few of the city counsel members ARE on the take on this one) which is broke, and in need of some moolah...

It just looks like to me if you wanna screw people around this is the kind of template you need to play, to do it...

All of this really motivates me to get my homestead setup on our property up in N.E. Texas, keep my guns, and have a broadband connection to keep up with things in the world from a position where I can see the crap coming, yet not get too caught up in it...

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