This would have an impact on many of us since we use the turnpike. It's worth pointing out that the Cleveland Plain Dealer article doesn't even mention us:
Columbus- Imagine Ohio reaping a $4 billion to $6 billion windfall that allows millions to be invested in Cleveland, Dayton and other struggling cities where Democrats dominate - without raising taxes.
Instead, it would be done by leasing the Ohio Turnpike.
New businesses eventually would sprout, downtown housing would follow, and city coffers would swell.
Secretary of State Ken Blackwell, the Republican nominee for governor, champions such a plan and hopes it will boost Ohio's economy, along with his prospects in this year's competitive race for governor.
The money would come from leasing the 241-mile toll road that offers truckers a direct route between Pittsburgh and Chicago and carries thousands of commuters daily across northern Ohio.
"There is an emerging market appetite for this type of investment," Blackwell said. "It's time for Ohio to get on board."
Yes once again like Learn and Earn, funding education is also mentioned:
Blackwell announced the idea several months ago, saying the proceeds could be used for scholarships, expanding broadband access and development of alternative energy sources. But in his new book, "Rebuilding America"(WND Books, 255 pp., $25), released this month, he fine-tunes the mechanics of the proposal and introduces a plan for targeted investment.
I'm not sure how I feel about this, realistically for our area if you want to head East there are few options if you don't want to use the turnpike. I was under the impression that the turnpike would eventually become a non-toll road and that voters approved the creation of the bonds with the understanding that it would eventually become a free road. What would something like this do to the already problem stricken Route 2? States that have sold their turnpikes have seen dramatic increases in tolls. Independent truck drivers are already facing increased costs due to fuel prices, what would creating a situation where tolls would increase do to them? Further the legal aspect, if the toll roads are supposed to be owned by the residents of Ohio and were supposed to eventually be free how could the State of Ohio even sell rights to them anyway?
curtsy to Buckeye Blue Blog for drawing my attention to this.
Keeping Your Belongings Safe Through Storms
-
Years ago almost every house was built with some sort of shutter, whether
designed as storm shutters or for security. Granted, most windows during
those d...
13 years ago
5 comments:
Lisa - great question on who's really paid for and, thus, owns the turnpike.
I know that other states have "sold" their turnpikes and reaped huge amounts of money. However, when they've spent all the money they got from the "sale," they'll be right back where they started - needing more money for government, because they certainly won't have cut spending.
Then they'll be looking for something else to "sell."
Amen, amen, amen, Maggie!
These government fire sales are extremely short-sighted.
I think there are some public spheres - such as water systems, roads, and public schools - that ought to stay public assets.
Can private enterprise help make these systems more efficient? Certainly. I am all for hiring contractors to repair roads, run school lunch programs, and other ways to improve the delivery of services.
If Blackwell was serious about improving the state's business climate, he would make the Turnpike a free interstate and abolish the Turnpike bureaucracy.
A couple of pennies on the gas tax would make up for the money that the Turnpike brings in.
He would also win a lot of votes from citizens in the dozens of towns weary of truck traffic from vehicles seeking to avoid the tolls.
It is my recollection that the toll system was a temporary way to pay for the construction of the Turnpike (I cannot find a source for this).
Lisa - from the June 5th Gongwer's report:
Blackwell-Turnpike: Ken Blackwell’s proposed lease of the Ohio Turnpike to private business would likely need annual toll increases to generate the kind of money the Republican governor candidate anticipates, a fiscal analyst and economist concluded.
“Even if the Ohio Turnpike is well run by a private company, there will be no easy profits earned through its management,” David Ellis and Edward Hill said in an analysis they prepared at the request of The (Cleveland) Plain Dealer.
“The lease will be paid for by increased tolls. In effect, the proposed…economic development funds that will be created from the proceeds of the lease will not be supported by operating the turnpike more efficiently. They will be indirectly supported by increased highway tolls,” the report said.
Mr. Ellis is director of policy, planning and programs for the Center for Community Solutions. Mr. Hill is a vice president for economic development at Cleveland State University.
Mr. Blackwell has proposed leasing the 241-mile toll road across northern Ohio for 99 years to generate a projected $4 billion to $6 billion. The highway connects the Indiana Toll Road with the Pennsylvania Turnpike.
“It would seem the only reason to lease the asset, given our analysis, is an ideological drive to shrink the size of government,” the analysis said.
The report notes a 75-year lease on the 157-mile Indiana Toll Road generated $3.8 billion, while a 99-year lease for the Chicago Skyway generated $1.8 billion.
“Both are troubled roads, which creates an opportunity for a private company to earn a good return by operating them more efficiently,” the analysis said. “The Chicago Skyway was haunted by patronage and operating inefficiencies. Ohio’s turnpike has neither of these problems.”
Lisa,
”Imagine Ohio reaping a $4 billion to $6 billion windfall…”
If someone is willing to lease the Ohio Turnpike for $ 4-6 Billion, maintain it, manage it, and collect the tolls, AND make a profit, then think of what Ohio could do if they kept on doing it themselves…
”I was under the impression that the turnpike would eventually become a non-toll road and that voters approved the creation of the bonds with the understanding that it would eventually become a free road.”
That’s the rumor and the heart of this SCAM. Blackwell would be essentially leasing the rights to a supposedly toll free road, to a company that expects to charge and pay…, TOLLS.
”States that have sold their turnpikes have seen dramatic increases in tolls.”
Exactly! What a SCAM!
”Further the legal aspect, if the toll roads are supposed to be owned by the residents of Ohio and were supposed to eventually be free how could the State of Ohio even sell rights to them anyway?”
I suspect that the (politician’s) conventional thinking is, “If they’re paying it now, and we lease it out, then they (that would be US) should willingly expect to pay dem tolls…
In a word, IMMORAL. . .
Greets to the webmaster of this wonderful site! Keep up the good work. Thanks.
»
Post a Comment