Watch the Bloomberg story on it here.
Those who voted to hand 19 TX roads to private, foreign toll operators are:
Yeas 51 — Allen; Alonzo; Alvarado; Are´valo; Blanco; Burkett; Button; Coleman; Collier; Cortez; Elkins; Farrar; Flynn; Geren; Giddings; Gooden; Guerra; Gutierrez; Hernandez; Howard; Huberty; Israel; Johnson, E.; King, K.; King, P.; Koop; Longoria; Lucio; Martinez; Moody; Morrison; Murphy; Neave; Oliveira; Ortega; Perez; Phillips; Raymond; Rodriguez, E.; Rodriguez, J.; Rose; Sheffield; Shine; Smithee; Thompson, E.; Thompson, S.; Turner; Uresti; Villalba; Walle; Workman.
Taxpayer champions who voted against are:
Nays 82 — Anderson, C.; Anderson, R.; Bailes; Bell; Biedermann; Bohac; Bonnen, D.; Bonnen, G.; Burns; Burrows; Cain; Canales; Capriglione; Clardy; Cosper; Craddick; Cyrier; Dale; Darby; Dean; Deshotel; Dukes; Dutton; Faircloth; Fallon; Frank; Frullo; Goldman; Gonzales; Gonza´lez; Hefner; Herrero; Holland; Hunter; Isaac; Kacal; Keough; King, T.; Klick; Krause; Lambert; Landgraf; Lang; Larson; Laubenberg; Leach; Lozano; Metcalf; Meyer; Miller; Mun˜oz; Murr; Neva´rez; Oliverson; Parker; Paul; Phelan; Pickett; Price; Raney; Reynolds; Rinaldi; Roberts; Romero; Schaefer; Schofield; Schubert; Shaheen; Simmons; Springer; Stephenson; Stickland; Stucky; Swanson; Thierry; Tinderholt; VanDeaver; White; Wilson; Wray; Zedler; Zerwas.
Absent, Excused — Anchia; Paddie; Wu.
Absent, Excused, Committee Meeting — Ashby; Davis, S.; Davis, Y.; Sanford.
Absent Unexcused — Bernal; Cook; Gervin-Hawkins; Guillen; Hinojosa; Johnson, J.; Kuempel; Minjarez; Vo.
Source: House Journal Recorded Vote
See press release: VICTORY: Grassroots KILL private toll bill, secure Abbott's vision for toll-free future
Trump floats gas tax increase after cold reception to privatized toll roads
By Terri Hall
May 5, 2017
It’s tough being a change-agent. Newly minted President Donald Trump came into office with high hopes of a major infrastructure overhaul. With the nation’s crumbling bridges, pothole stricken roads, and millions of commuters choking in urban congestion, Trump had a big plan to harness the private sector through public private partnerships (P3s) to address congestion by adding toll lanes. The problem is those privatized toll lanes grant private, usually foreign, entities monopolies over vital public highways where the companies are given the exclusive right to extract the highest possible tolls for 50-99 years.
With the pushback to P3s coming fast and furious from working class families to truckers, Trump has begun to change his tack. After meeting with members of the trucking industry this week, Trump has floated the idea of a federal gas tax increase to raise the revenue necessary for the big infrastructure fix. Truckers prefer a gas tax increase to tolls.
Here’s the back story. The National Highway Trust Fund, which is funded with a federal gasoline tax of 18.4 cents per gallon, has teetered on the edge of bankruptcy for over a decade while the gas tax has remained unchanged since 1993. Inflation has diminished its buying power over the last 24 years, and members of congress have been reluctant to raise it. Under President George W. Bush, many Republicans pushed road privatization and implementing toll ‘managed’ lanes as the means to finance road projects as perpetual road funding shortfalls plagued the highway system.
Hands 19 Texas roads to foreign entities to gouge commuters & make us their ATM machines
Call your State House member NOW!
Keep Texas roads in Texans' hands.
Letter to Texas Legislature...
Please be advised that a broad coalition of leaders of grassroots groups across Texas and citizens stand with us in strong opposition to HB 2861 and all related bills that approve any type of Comprehensive Development Agreements (CDAs) or public private partnership toll projects. A signed statement detailing this significant block of opposition is attached; however, we, and the signers of this letter, do not stand alone in our opposition to CDAs and P3s.
Revolt: Sister city fights back against Cibolo private toll road
By Terri Hall
April 6, 2017
A funny thing happened on the way to handing over a public highway to a private toll operator —a sister city said an unequivocal, ‘No!’ A small suburb of San Antonio, the city of Cibolo, inked an irrevocable deal to hand an existing public highway, FM 1103, over to a private toll company so it could place express toll lanes down the middle, granting it the exclusive right to operate both the toll lanes and the existing free lanes for the next 50 years. FM 1103 runs through the city limits of Schertz before it connects to Interstate 35. But what Cibolo didn’t count on was its neighboring city not cooperating with the scheme.
By Terri Hall
After a controversial decision by the Cibolo City Council to give development rights for a private toll road to a corporation that's never even built a road last week, Cibolo Mayor Allen Dunn has been busy shooting the messenger. The Development Agreement, kept secret from the public prior to its approval last week, was finally made public and it verifies and validates citizen concerns. When the terms of an exclusive 50-year development agreement was negotiated in secret and handed to a single private firm in a no bid contract, it shouldn't surprise elected officials when the public is irate.
The city signed an irrevocable development agreement with, Cibolo Turnpike, an entity created by the investors of Texas Turnpike Corporation. The draft operating agreement requires the city to repay all the company's debt and the net present value of future distributions (anticipated revenues) if it wants out of the deal -- after it's built. There is no other way out for the city, however, there are lots of exit strategies for the company.
So what are some of the other red flags? First, the agreement seeks to give operational control of the non-toll portion of FM 1103, a state highway, to the private company.
How sad that this happened just days before we celebrate Texas Indepenence Day, March 2.
City hands control over public roads to private firm
By Terri Hall
Selous Foundation for Public Policy Research
March 1, 2017
In a stunning betrayal of open government, the Cibolo City Council voted 6-0 to approve a 50 year development agreement with Texas Turnpike Corporation (TTC) granting it the exclusive right to build, operate and maintain what’s been dubbed the Cibolo Parkway — a tollway linking I-35 to I-10 through mostly rural farmland northeast of San Antonio. The agreement was negotiated behind closed doors and was kept secret from the public until it was approved last night.
Even worse, the city council gave TTC the rights to develop a project the taxpayers have already paid for, the expansion of FM 1103, the city’s primary connection to I-35. By doing so, they’ve granted a private corporation a virtual monopoly over the existing non-toll competitor to its private toll road. TTC can intentionally slow down the free option to force more cars onto its for-profit toll road by manipulating speed limits, access points, and stop lights. It’s a developer’s dream and a commuter’s worst nightmare.
Lone Star Rail resurrected by link to I-35 toll lane debacle
By Terri Hall
Selous Foundation for Public Policy Research
August 24, 2016
The saying that two things are inevitable — death and taxes — just got expanded to three things: death, taxes, and government boondoggles that never die. Yesterday, the day after the Alamo Area Metropolitan Planning Organization (AAMPO) unanimously rejected funding further study of the Lone Star Rail which was on the heels of the Capitol Area Metropolitan Planning Organization (CAMPO) pulling its funding, the Bexar County Commissioners Court passed a resolution to transfer the Lone Star Rail environmental study from the Lone Star Rail District to the Texas Department of Transportation (TxDOT). So now, not only will every Texan’s state gasoline taxes be paying for this rail boondoggle at the state level, the resolution also called for moving the rail corridor over to Interstate-35, despite the Texas GOP platform's plank opposing rail.
The Lone Star Rail project envisions a 77-mile commuter rail between Austin and San Antonio, and it’s been studied since the creation of the Lone Star Rail District by the Texas Legislature in 1997. Over $20 million in taxpayer funds have already been spent on studying the feasibility of the corridor, and the price tag is somewhere between $2-$3 billion (that’s a big range). Union Pacific announced in February it would not allow the rail project to utilize its tracks. The feds passed on granting the project federal funding. Then the Chair of CAMPO, Will Conley, decided enough is enough and led the charge to have the board vote to defund the project August 8, leading all to believe it was the death knell for the Lone Star Rail.
Public private partnerships are one thing both liberal and conservatives can agree on - they're a BAD deal for taxpayers.
Report Examines Equity In Toll Road Deals
Policy paper from the Center for American Progress addresses misconceptions about the way toll roads are financed.
August 12, 2016
States have increasingly turned to tolling as a solution to heir funding and infrastructure problems. Private tolling companies end up with very little skin of their own in the game when making deals to take over roads, according to a report released Wednesday by the Center for American Progress, a liberal think tank. The group reviewed the US Department of Transportation's Transportation Infrastructure Finance and Innovation Act (TIFIA) federal loan program and found that the two dozen toll road projects it financed with taxpayer dollars had an average value of $1.3 billion, but the average equity investment was just $183 million, or 14 percent.
Texas’ first foreign-owned toll road handed to its creditors
By Terri Hall
August 15, 2016
Selous Foundation for Public Policy Research
It was so predictable. The people of Texas revolted against former Governor Rick Perry’s grand network of toll roads, once dubbed the Trans Texas Corridor, and many grassroots groups that sprung up to oppose it predicted its eventual demise. The press, always eager to jump on the ribbon cuttings, seldom show you the angling inside bankruptcy court, yet that’s where State Highway 130 Concession Company ended up. As part of its Chapter 11 bankruptcy, Spain-based Cintra and San Antonio-based Zachry ceded the delinquent toll project to its creditors Friday.
The southern 41-mile stretch of SH 130, a bypass designed to avoid Austin traffic from Mustang Ridge to Seguin, opened with much fanfare in November of 2012, including an appearance by Perry who hailed this first public private partnership (or P3) as highway nirvana and ‘visionary.’ But crony capitalism is as old as dirt and taxpayers didn’t see it as anything other than graft.
Texas’ first public-private toll road goes bankrupt
By Terri Hall
March 2, 2016
It's appropriate that on Texas Independence Day, March 2, Texans got to formally declare independence from its bondage to a tremendously unpopular, anti-liberty public private partnership (P3) contract as a result of Cintra's bankruptcy on SH 130 (segments 5 & 6, the southern 41 miles of the 86-mile tollway). It's been just over three years since former Governor Rick Perry's grand toll road experiment began on this stretch of highway.
Though this is a very partisan viewpoint, her points about the pitfalls of road privatization are spot-on.
Problems with ‘market driven’ road maintenance approach
By Judy Ferro
February 16, 2015
Recently Sen. Jeff Siddoway helped me realize that not all Republican legislators who’ve supported measures designed to destroy the public schools want to destroy the public schools. Now I’m hoping that Idaho also has Republican legislators who don’t realize that measures they support are designed to end public ownership of roads and bridges.
Sound impossible? Check out this headline from Bloomberg.com, “CPP Investment Board to buy 10 percent of 407 Toll Road for About $878 million.” That’s right. Corporations with $2 trillion sitting in banks are seeking profitable investments. Maybe people can’t afford to buy new things, but they’ll pay for necessities like roads.
Republicans claim that we can’t take care of roads and bridges today because we can’t pay for them. Never mind that in the 1950s — definitely not boom years — we embarked on an interstate highway system that was the envy of the world. Republicans then supported building roads because such long-term investments would help both businesses and people. For Democrats, there was the added bonus of good-paying jobs. Today’s Republican leadership, however, is more interested in making the rich even richer.
Since 2008, the transportation policy of ALEC — the American Legislative Exchange Council — has called for a “market-driven highway system” and “private investment in highway projects.”
“Tolling,” charging to use roads, is the subject of five of its seven principles. Do I need to remind you that several Idaho legislators are ALEC members? Loyola University economics professor Walter Block published a major book urging privatizing roads in 2009. Ted Stossel, Peter Samuel, David Klein and Linda and Morris Tannehill have echoed his call. Most cite “reducing congestion” as the No. 1 argument for privatizing.
Road crowded? Just charge more. Make those who can’t afford a $5 toll each day to crowd into side streets so the paying customers can cruise without delays. Economics professor Bruce L. Benson suggests privatizing even those side roads and giving the owners the power to police the environs so they can guarantee the safety of their customers.
Just how high would tolls have to be to provide a private police force? Powerful people who crusade against “one more cent” in taxes aren’t worried about your pocketbook. They have no qualms about you having to pay whatever the market will bear to corporations like Toll Road Investors or CPP Investments. And toll supporters don’t have to convince the public to support privatization. They just have to prevent us from maintaining our decaying roads and bridges long enough that fear of death or injury builds.
A collapsing bridge killing a dozen or more and embroiling the state in lawsuits would be a boon for them. And once we let our roads and bridges go, the chances of buying them back are nil. How do we retain our public infrastructure? To start off, we should follow Siddoway’s lead and give maintaining our roads and bridges a higher priority than new tax cuts. Idaho already collects the least taxes per person of any state.
Then we should spread the cost over a number of measures. Legislators are considering increasing user fees for long-haul trucks, vehicle registration fees and the gas tax. (It’s doubtful congressional Republicans can increase the federal gas tax; the Koch brothers and other oil billionaires are against it.)
There is also talk of increasing the sales tax another cent. Or we could add a new income tax bracket, perhaps charging an extra 0.5 percent for those making over $140,000 a year. None of these options is appealing. But paying tolls to visit the kids in Moscow could be a lot worse.
* Judy Ferro is the state committeewoman for Canyon County Democrats.
Government outsourcing goes horribly wrong more often than not. Here are a few representative horror stories
For decades we’ve been subjected to constant propaganda that government is inefficient, bureaucratic and expensive. We’re told that the answer is to “privatize,” or “outsource” government functions to private businesses and they will do things more efficiently and everyone comes out ahead. As a result we have experienced decades of privatization of government functions.
So how has this wave of privatization worked out? Has privatization saved taxpayers money and improved services to citizens? Simple answer: of course not. If a company can make a profit doing something the government had been doing, it means that we're losing out one way or another. It’s simple math. And the result of falling for the privatization scam is that taxpayers have been fleeced, services to citizens have been cut way back and communities have been made poorer. But the companies that convinced governments to hand over public functions have gotten rich off of the deal. How is this a surprise?
To read the rest of the story, click here.
By Blake Ellis and Melanie Hicken
February 17, 2015
Government agencies across the country are hiring private debt collectors to go after millions of Americans over unpaid taxes, ancient parking tickets and even $1 tolls.
It’s a good deal for cash-strapped states, cities and other local governments. By outsourcing this dirty work and letting private companies charge debtors sky-high fees, government agencies can get these collection services free of charge.
And it's a great deal for debt collectors. In an industry already known for bad behavior, debt collectors that work for government agencies usually don’t have to work within the confines of consumer protection laws – opening the door for higher fees and even more aggressive tactics.
Their government bosses can give them the power to threaten debtors with the suspension of their driver’s license, garnishment of their wages, foreclosure and arrest to get them to pay up.
To read the whole story, click here.
Texans oppose high speed rail through their communities, as they did when it was packaged as part of the Trans Texas Corridor. Impacts deemed 'catastrophic'!
Montgomery County leaders, residents rally against proposed high-speed rail
by Liza Winkler
February 3, 2015
An estimated 800 Montgomery County officials and residents gathered Feb. 2 at the Lone Star Community Center in Montgomery to speak out against the proposed construction of a 240-mile high-speed rail project between Houston and Dallas by 2021.
“[The high-speed rail] is one of the biggest threats to Montgomery County in many, many years,” retired Montgomery County Judge Alan Sadler said. “Once those [assessed property value] decreases take place if this train hits this route in Montgomery County, the entirety of the county will pay the tax differential to make up for the loss. It is extreme.”
Why should a single Texas taxpayer pay for truckers to have toll discounts when we all have to pay full price to take the failing SH 130 tollway? This is not good policy and only prolongs the inevitable - bankruptcy for an ill-conceived toll road. This taxpayer subsidy should never happen.
Multiple segments of Texas 130 eyed for truck toll discounts
By Keith Goble
Land Line state legislative editor
January 9, 2015
Truckers traveling through central Texas could soon get another enticement to avoid driving on Interstate 35. In an effort to reduce congestion on I-35 through the Austin area, multiple Texas state lawmakers are behind an effort to reduce truck tolls along a 49-mile stretch of state Highway 130.
The 90-mile highway connects the state capital with San Antonio to the south. It is split into six segments. Segments 1 through 4 link Georgetown to south Austin and are run by the state Department of Transportation. Segments 5 and 6 are closest to San Antonio and are run by a private group.
Sens. Kirk Watson, D-Austin, and Judith Zaffirini, D-Laredo, and Rep. Celia Israel D-Austin, have filed bills for consideration during the session that begins Tuesday, Jan. 13, that would reduce the expense for truckers to travel along segments 1 through 4.
Privatizing highways using P3s (called AFPs in Canada) cost Canadians $8 billion more than if the government had done the toll projects. Bottom line, P3s cost far more than the quicker delivery is worth.
Government-managed projects could save Ontario money: Auditor-General
By Adrian Morrow
The Globe and Mail
Tuesday, Dec. 09 2014
Public-private partnerships have cost Ontario taxpayers nearly $8-billion more on infrastructure over the past nine years than if the government had successfully built the projects itself.