Wonder why there is all the fuss over toll
roads? Well, we're not talking about traditional toll projects.
Gov. Rick Perry and his
Transportation Commission are pushing private toll road deals that
limit free routes and allow the private operator to charge high
tolls.
As ex-Transportation
Commissioner Sen. Robert Nichols, a stickler for details and the
author of a bill to halt comprehensive development agreements, or
CDAs, has noted, the devil is in the details.
These private toll contracts include
noncompete agreements like Cintra's. There will be no
improvements made to existing roads or new free routes built within
a certain radius of the toll road. Doing so would compete with
or reduce toll revenues, and a private company simply won't allow
that.
The Texas Department of Transportation
promises toll rates of 12 cents to 15 cents a mile, but the
reality has been 44 cents up to $1.50 per mile on similar projects
that just opened in Austin. When TxDOT has admitted it costs 11
cents to collect the tolls, it can't possibly cover the operation or
maintenance of that road with 12-cent to 15-cent tolls, much less
pay the private toll operator its guaranteed 12 percent profit.
In fact, TxDOT's mantra is that the private
company will charge "market rate," which essentially means tolls
without limit since there will be few, if any, alternatives.
Bottom line: Using CDA private toll contracts is the most
expensive option for motorists. Yet the governor and his
cronies claim they're doing all this without raising taxes.
Dennis Enright, an expert in these
public-private partnerships, testified on March 1 to the Senate
Transportation and Homeland Security Committee that
CDAs cost 50 percent more than traditional
public toll roads. He also stated it's
always better to keep these toll projects in the public sector
rather than privatize our highways in these monopolistic 50-year
contracts.
The taxpayers will pay billions both on
the front end with federally backed bonds and loans and on the back
end through tolls for the next 50 years just to accelerate the
construction of a 10-mile stretch of highway.
The same company won a deal to build
Texas 130, won the development rights to build the first 600 miles
of the Trans Texas Corridor, called TTC 35, and is one of two
foreign companies bidding to takeover U.S. 281 and Loop 1604 in San
Antonio and turn them into tollways.
So what's the
solution? The CDA moratorium.
It's past time to rein in TxDOT's push to
privatize and toll our public highways in these very controversial
deals that amount to horrific public policy. The CDA moratorium
bills approved by the Senate and the House would place a two-year
moratorium on CDAs, giving the Legislature time to get the details
of these contracts right before signing away our public highways for
50 years.
Let's assume that even though TxDOT's budget
has tripled since 1990 and doubled since Perry took office, and even
though TxDOT has $7 billion in bonds available to it, we are still
short of cash for highways. A recent Texas Transportation Institute
study showed indexing the gas tax to inflation is all that's needed
to meet our future transportation needs without tolls.
Politicians in
the House, in particular, need to have the
political will to enact the most affordable, most sensible financing
solution. All the options we're faced with are tax
increases of one sort or another since
tolls are clearly a tax,
an aggressive one in the hands of a
private company.
However,
before adding one dime to TxDOT's budget,
the Legislature must also pass San Antonio Sen. Jeff
Wentworth's bill to
stop any further hemorrhaging of
the gas tax that's been going to
nontransportation sources. The taxpayers won't
tolerate putting more money into a leaky boat. That's what got us
into this mess in the first place.
Since an ounce of prevention equals a pound
of cure, let's revisit the gas tax to prevent this shady widespread
shift to private tolling and be done with it.
Terri Hall is
director of Texans Uniting for Reform & Freedom, a nonprofit,
grass-roots organization working to educate citizens about tolls and
the Trans Texas Corridor