Public Private Partnerships & Comprehensive Development Agreements with non-competes, debt, and public subsidies abhorrent to taxpayers
By Terri Hall on behalf of Texas TURF
April 1, 2011
At Wednesday's public hearing, two issues were brought up that we feel need clarification.
First, about the non-compete language in HB 2186, to hand parts of Hwy 183 in North Texas over to a private corporation for the next 50 years. In the original bill as filed, it had language that somewhat restricted non-competes, but the substitute bill removed that language. The discussion seemed to lead people to believe that removing that language meant there would be a prohibition on non-competes for that project, when actually it means there would now be NO restrictions on non-competes since the original language that was a form of a restriction on non-competes is now gone. Therefore, HB 2186 would now have NO restrictions on non-compete clauses that prohibit or penalize taxpayers if free roads are expanded surrounding the privately controlled toll roads.
Prior to getting some restrictions on non-competes put in place in 2007, Cintra tried to make the entire counties of Collin and Denton the non-compete zones for 50 years on the 121 toll project (meaning NO free roads could be expanded for the life of the contract without paying Cintra for any lost toll revenues!)! So is this really what our elected officials want? In 2007, the Legislature fought hard to prevent this from happening. What's changed to even have this scenario back on the table? The taxpayers sure haven't changed their minds, They're outraged by it.
Second, Ms. Melissa Cubria of TexPIRG brought up the article in the Statesman about the proposed DFW 183 toll project being 100% funded by TxDOT (ie - with our gas taxes). The article did, in fact, refer to the 183 project in DFW, yet during the Committee hearing it was stated from the dais that it referred to 183 in Austin. Read it here and scroll to the bottom of the story (after my introductory comments).
The fact that a road will be 100% paid for by Texas taxpayers and then handed over to a private corporation to gouge our citizens with oppressively high toll taxes at 75 cents a mile for a HALF CENTURY is a piracy of the public's assets. It is what Michelle Malkin said it is, corporate welfare. Texans oppose tolling existing roads because it's a double tax. How much more egregious when the road is 100% built with gas taxes as our existing roads are, then handed over to a private company in a sweetheart deal that will indebt generations, increase taxes and our cost of goods, impede our freedom to travel, and ensure our free roads remain congested for our lifetimes. We can do better than this!
Multiple generations of Texans will be impacted by these 50 year contracts. Is it really worth indebting so many future generations to build today's roads? Thomas Jefferson didn't think so.
"No generation can contract debts greater than may be paid during the course of its own existence." --Thomas Jefferson
The Texas Constitution says that one Legislature cannot financially bind a future Legislature, perhaps based on Jefferson's wisdom.
Please carefully weigh and consider these things in the decisions you face. Represent the interest of all Texans, both this generation and future generations, well. We're counting on you.