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Mopac & 290 flyover shutdown

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News
Link to article here.

Any volunteers to be the first car to take these this flyover when it opens?

Flyover construction at MoPac/290 shut down

By Ben Wear | Monday, July 18, 2011, 10:30 AM

Construction of two flyover bridges at the MoPac Boulevard/U.S. 290 interchange shut down last week after the contractor walked off the job, a TxDOT spokesman says.

Wiser Construction, based in Las Vegas, Nev., left the job site, TxDOT spokesman John Hurt said. It will be the responsibility of a bonding company to bring on a replacement and finish the job, which was to have been done by December. How long a delay will this cause?

“Couldn’t even make an educated guess,” Hurt said.

Wiser earlier had to tear down and rebuild a pillar that will support one of the new bridges. Is there any reason to doubt the quality of the numerous pillars already constructed and left behind by Wiser?

“No,” Hurt said. “TxDOT inspectors have been on the job the whole time. That’s how we caught the problem with the column.”

The $8.4 million job, which the City of Austin is paying for and will be reimbursed for over the next 10 years or so by TxDOT, involves adding direct connection bridges from northbound MoPac to eastbound U.S. 290 and from westbound U.S. 290 to southbound MoPac.

Taxpayers subsidize Central TX turnpikes to tune of $100 million a year

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Link to article here.

One bad financial decision begets another with this toll road experiment. So taxpayers have already been subsidizing this toll system and will for the remainder of the years of its debt, but the news here is that the subsidy has grown to $100 million a year hole! Add to that the Formula One Racetrack subsidy of $250 million and you begin to see the special interest rip-off this whole system has become. The "if you build it they will pay a premium to get there" just won't fly!

Central Texas toll roads need more state subsidies than expected

By Ben Wear
AMERICAN-STATESMAN STAFF

Updated: 12:31 a.m. Monday, July 18, 2011

Published: 12:20 a.m. Monday, July 18, 2011

Tolls and other revenue have fallen more than $100 million short of covering debt and operating costs of the state's three-road Central Texas Turnpike System since the highways opened about four years ago. Texas Department of Transportation subsidies almost 70 percent more than originally predicted have made up the difference.

Those subsidies, covered primarily by state gasoline taxes that otherwise would be available for other road spending, should average about $38 million a year over the next decade and total about $750 million by 2042 , according to TxDOT documents. The system's first profitable year is not estimated to occur until 2030 , with some years in the red even after that because of major road rehabilitation expenses.

Toll revenue from the three roads — Texas 130, Loop 1 and Texas 45 North — after exceeding expectations in the system's initial years, has fallen about 6 percent below projections since September, a trend that could make those future subsidies even higher. TxDOT officials, in explaining the shortfall, point to the recession and its dampening effects on both travel and development near the tollways.

Revenue for the system comes mainly from tolls, but fines and investment income on reserves also provide some revenue.
The Texas Transportation Commission has not raised the system's initial toll rates, which, at about 12 cents a mile, are less than a third of what the Central Texas Regional Mobility Authority charges drivers on the 183-A tollway in Cedar Park .

At least one member of the Texas Transportation Commission, which governs TxDOT, said it is time for the agency to consider ceasing management of toll roads, instead leasing out even existing state toll roads to the private sector.

"Any dollar that we support that system with is a dollar that is taken out of the state of Texas to build and support other roads," said Commissioner Ted Houghton of El Paso, who has served on the commission since 2003 and has long advocated such agreements with toll road companies. "We need to get out of that business. Find someone who knows how to market those roads, to operate them and collect the tolls. We do it as a sort of side business."

Aside from the Austin roads, TxDOT runs toll roads in Tyler and Laredo. Local toll authorities are in charge of about a dozen other Texas toll roads.

TxDOT staff officials downplayed any gloomy implications of the recent revenue and spending numbers, arguing that ongoing efforts to cut operating and maintenance costs as well as prospects for greater traffic on the 66-mile system will steadily improve the situation.

"Moving forward, I think that the economy is picking up, and I see development such as the Formula One track and ancillary development around the track helping that," said Mark Tomlinson , TxDOT's turnpike director.

The F1 track, expected to open next June, will be about a mile east of where Texas 130 crosses FM 812 southeast of Austin. Several large residential and mixed-use projects are also planned for the Texas 130 corridor, but they won't be complete for 10 to 20 years.

Beyond that, Tomlinson said, the 2012 opening of the southern 40 miles of Texas 130, connecting the Austin area to Interstate 10 east of San Antonio, is likely to boost traffic and revenue. A private consortium headed by a Spanish toll road company is footing the $1.2 billion bill to construct that extension under a long-term lease with TxDOT.

"The picture's going to be pretty good for the future," Tomlinson said.

The turnpike system was TxDOT's first foray in decades into the pay-to-drive world. The agency in 2002 borrowed $2.2 billion on the bond market and, with an additional $500 million of its tax funds and a like amount of local tax money, built the tollways in Austin's northern and eastern suburbs.

The first segments of the system opened around Halloween in 2006 , inaugurating the toll road era in Central Texas, and the existing segment of Texas 130, which runs from north of Georgetown to Mustang Ridge, was completed in April 2008 . Texas 45 Southeast, a fourth tollway that links Texas 130 to Interstate 35 south of Austin, opened in April 2009 .

Texas 45 Southeast was built using tax money alone, with no borrowing, and is not technically part of the tollway system.

Toll revenue from the system exceeded 2002 projections for the first three years, boosted mostly by robust traffic on Texas 45 North, which runs 13.3 miles from Northwest Austin through Round Rock to Pflugerville. But Texas 130, which skirts the metro area's east side for 49 miles , has been below projections for about half of its short life. And the 3.5-mile Loop 1 tollway that sprouts from the north end of MoPac Boulevard, after a stronger than expected start, has seen lower than predicted revenue every month since September 2008 .

Overall system toll revenue slipped below the projected $6 million a month starting in September and has mostly remained under its expected level in the months since then. Revenue for the first six months of the 2010-11 fiscal year was $32.9 million , about 4 percent higher than the comparable period the year before but 9 percent below projections.

Expenses, meanwhile, have been almost double — about $50 million a year — projections outlined in the 2002 bond prospectus. That includes about $30 million a year to collect the tolls, process billings and pursue collections from late payers.

TxDOT has been working to lower those costs, Tomlinson said. The agency, he said, has shortened hours at the customer service center alongside Loop 1, installed equipment that scans photographs of license plates used to bill customers who don't pay with cash or have an electronic toll tag, reduced mailing costs and renegotiated its contract with a collections company.

And the agency has taken bids for a new contract for toll operations to be awarded this summer. Review of those bids, Tomlinson said, indicates that lower costs are on the way there as well.

"All toll operations have a ramp-up period," Tomlinson said. "And they'll all tell you that their costs are a lot higher in the early years."

The largest ongoing cost of the system, and the most predictable, is debt payments. TxDOT last year made $63.1 million in such payments, about $44.6 million to bond holders and $18.5 million to the federal government to service $900 million borrowed under a transportation loan program. The payments match projections in the original bond prospectus.

Those annual payments will grow through the years, TxDOT documents show, reaching a daunting $489 million in 2042. By that year, when the $2.2 billion in debt is scheduled to be paid off, TxDOT (using tolls by Central Texas drivers) will have made about $7.5 billion in payments.

Revenue likewise is predicted to balloon through the years, thanks to increased traffic and toll rates scheduled to rise every 10 years or so. The first toll increase is scheduled to occur in 2016 , officials said.

Bond documents show projected revenue of more than $500 million a year about three decades from now. Drivers, who through May had paid $224 million in tolls since the roads opened, will have paid almost $10 billion by 2042, bond documents show.

The flattening revenue in recent months shouldn't be seen as a sign that those estimates are wildly off, Tomlinson said, or that tax subsidies will be significantly larger than predicted.

"I don't think anyone would tell you Central Texas is going to stop growing," he said.

Do toll roads make a profit?

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Do the toll roads make a profit?

Reason & Rail blog
June 30, 2011

In comparison to my earlier post about the operational profits of high speed rail, I thought it might be useful to take a gander at various toll roads in America and see whether they made a net profit; that is, revenues in excess of operational, depreciation, tax, and interest expenses; since the major complaint I've run into is persons complaining that high speed rail ought to repay its capital investment costs as well. I'm specifically breaking out interest in order to help illustrate the capital costs, but annual net deficits or profits are based on the totality of revenues and expenses as reported by the toll road.

San Joaquin Toll Road (CA SR 73), 2010, page 9
Operating income: $81,668,000
Interest expense: $112,817,000
Annual net deficit: $19,690,000

SR 73 is in sufficiently poor shape that it recently found it necessary to reduce the debt service margin and extend the bond repayment period in order to continue paying them.

Foothill/Eastern Toll Roads (CA SR 241, 261, 133), 2010, page 9
Operating income: $94,669,000
Interest expense: $132,418,000
Annual net deficit: $10,702,000

E-470 (Denver, Colorado), 2010, page 14
Operating income: $31,366,289
Interest expense: $95,419,612
Annual net deficit: $60,068,817

In addition to toll revenue (from some of the highest in the country, with a full length trip from I-25 S to I-25 N costing 31.8¢ per mile), E-470 also received more than 8.6 million dollars in vehicle registration fees.

Harris County Toll Road Authority, 2010, page 16
Operating income: $229,583,106
Interest expense: $116,887,849
Annual net income: $132,199,306

North Texas Tollway Authority, 2010, page 12
Operating income: $258,200,000
Interest expense: $377,500,000
Annual net deficit: $111,200,000

Note that the numbers here may be deceptive. According to Tollroad News, "one reason NTTA was able to build the TX121 Sam Rayburn Tollway so cheaply was that they took over a half-built pike from TxDOT and excluded TxDOT's costs from their figure for Project Costs." There may, therefore, be additional depreciation and interest costs not properly accounted for.

Central Texas Turnpike System, 2010, page 21
Operating income: $5,688,946
Interest and amortization: $66,745,615
Annual net deficit: $127,139,586

In this case, I ignored 63 million dollars in outside capital contributions and transfer payments in recording the net deficit. This does not materially affect the matter as it only offset half the losses. It is also interesting to note that in 2009, after depreciation, the CTTS ran a negative operational income, a result not seen in any of the earlier examined figures regarding high speed rail.

Pennsylvania Turnpike, 2010, page 24
Operating income: $71,359,000
Interest expense: $263,749,000
Annual net deficit $162,295,000

In 2009, the PA Turnpike had a negative operational income. The annual net deficit figure I've used is after eliminating transfers to PennDOT and likewise ignoring capital contributions. It is quite possible, however, that the PA Turnpike would run a net profit were it not for the revenue bonds funding transfers to PennDOT under Act 44.

Indiana Toll Road Concession Company, 2010
EBITDA: $138,800,00
Operating income: $59,100,000
Interest expense: $268,000,000
Net annual deficit: $260,800,000

Ohio Turnpike Commission, 2009, page 23
Total revenues: $209,348,000 (includes 2.1 million in gas tax allocations)
Total expenses: $199,701,000
Interest expense: $30,730,000
Net annual profit: $9,647,000

Much of the revenue for the Ohio Turnpike comes from commercial vehicles which represent 20% of the traffic and 53% of its revenue collection. As a result, increased intermodal competition from railroads, such as the new CSX intermodal yard, may represent a major threat to the sustained profitability of the Ohio Turnpike.

Tolls coming to I-10 in LA

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Link to article here.

latimes.com


Toll lanes coming to 10 and 110 freeways in Los Angeles County

Construction of toll lanes begins on the 10 and 110 freeways, where the aim is to unclog roads during Los Angeles County's rush hours.

By Abby Sewell and Sam Allen, Los Angeles Times

July 7, 2011

  Officials broke ground on what will be Los Angeles County's first freeway toll lanes, taking a gamble that drivers will be willing to pay significant sums to avoid rush-hour traffic.

Mayor Antonio Villaraigosa and other officials on Wednesday hailed the project as a major improvement to L.A.'s clogged freeway system. Officials plan to convert a total of 25 miles of existing carpool lanes on the 10 and 110 freeways into high-occupancy toll lanes. Carpools and buses will be able to use the lanes for free, while solo drivers will pay up to $1.40 a mile during peak rush-hour traffic.

"Today marks a major milestone," Villaraigosa said, adding that the HOT lanes could be expanded to other freeways if the pilot program is successful.

But the toll lanes still face some tough financial and political questions. To the south, Orange County has one of the nation's largest networks of toll lanes and toll roads, which have been hit hard by the recession. Ridership is down on all of Orange County's toll roads — notably the 91 Express Lanes, which is a model for the L.A. County experiment. Riders on the 91 can pay up to $9.75 to use about 10 miles of toll lanes during rush hour.
Roughly 11 million trips were recorded on the 91 Express Lanes last year, compared with 11.5 million the year before, said Joel Zlotnik, a spokesman for the Orange County Transportation Authority. Those numbers were down from annual totals between 13 million and 14 million before the recession.

Converting carpool lanes into toll lanes has also been hit with opposition from some on the left and the right, including two influential members of Congress from California.

Rep. Gary G. Miller of Diamond Bar, the senior California Republican on the House Transportation Committee, said earlier this year that the toll amounts to double taxation and "absolutely infuriates" him. Rep. Maxine Waters (D-Los Angeles) said it would set up a "traffic system of haves and have-nots."

In response to critics who said toll lanes discriminate against low-income drivers, the pilot program will offer a $25 discount on the $75 deposit required to set up a prepaid toll account for lane users with household incomes of $35,000 or less.

The Metropolitan Transportation Authority estimates that 5,000 to 7,500 people a day will use the lanes, which are projected to generate $20 million in revenue during the pilot year.

Revenues will be used for improvements to the transportation system, said spokesman Rick Jager.

Tolls will vary from 25 cents to $1.40 a mile depending on traffic — the more congested, the higher the price to keep added cars from clogging the lanes. If the speed of traffic falls below 45 mph for more than 10 minutes, the lanes will be closed to solo drivers until speeds increase.

At the maximum rate, drivers could pay almost $20 to drive the 14-mile length of the 10 Freeway's toll lane, but Metro estimates that the average user will pay $6 per trip on the 10 and $4 per trip on the 110 during peak times.

A $210-million federal grant will fund the majority of the one-year pilot program on the 10 between Alameda Street and the 605 and on the 110 between Adams Boulevard and the Artesia Transit Center. Both are projected to open by 2013. The grant is also funding transit system improvements along the corridor, including 59 new alternative-fuel buses.

To drive in the HOT lanes, motorists must have a transponder that will be read by sensors on the roadway and will automatically charge the user's account.

Carpoolers will be able to set them to reflect that the vehicle has multiple occupants so they will not be charged (except during peak hours on the 10, when cars must have at least three occupants to ride for free). Solo drivers of electric and natural gas vehicles, who get a free pass on carpool lanes elsewhere in the county, will have to pay the same toll as other lone motorists in the new HOT lanes.

The L.A. toll lane experiment has generated much excitement in transportation circles, with some experts arguing that if they can work in the car-culture capital of the nation, they can work anywhere.

"A lot of people look to California for innovation, and they look to California for transportation management options," said James Moore, a civil engineering professor at USC. "Transportation economists have argued for over 50 years that the only really systemic solution to congestion is tolling."

Experts also downplayed the need for the toll lanes to generate income, noting that the main goal should be to move people more efficiently.

Many toll lane backers say that putting a high price on congestion-free driving can encourage people who can't or won't pay the high tolls to consider mass transit or carpooling. Moving toll drivers out of the main lanes of traffic could also ease congestion overall.

"It's really not meant so much as a revenue-generating device as it is a congestion-management device," said Martin Wachs, a transportation expert at the Santa Monica-based think tank Rand Corp.

"By the criteria for which it's designed, which is improving travel time and reducing congestion, virtually every case I'm aware of has been successful."

In Los Angeles, Jager said revenues will not be a concern, at least for the first year, because the federal grant will subsidize operating costs. At the end of the year, officials will evaluate the program's viability and its success at alleviating congestion and encouraging more people to use mass transit.

Editorial: Avoid toll increases by shifting priorities

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Link to article here.

Avoid toll increases by shifting priorities

By Brian Murphy

Baltimore Sun
Wed Jul 6, 2011

 
The Maryland Transportation Authority recently announced its intention to increase automobile tolls throughout Maryland, including a per car increase in the Chesapeake Bay Bridge toll from $2.50 to $8 by 2013. According to the MdTA, the justification for the increase is to provide revenue for maintaining our aging facilities. While maintaining safe infrastructure is an invaluable role of our government, further investigation reveals this to be nothing more than another case of fiscal mismanagement by our elected officials. And the numbers prove it.

Maryland's Department of Budget and Management posts Maryland's operating budget online. If more Marylanders knew how their money was spent, elected officials would behave differently; a well-informed electorate is the greatest weapon against wasteful spending.

Maryland's budget is divided into several categories, including public safety, transportation, higher education, human resources, public debt and other. The problem is with how elected officials allocate funding. Hidden within our $34 billion budget are priorities that are difficult to defend.

 


Our 2012 state budget is $34 billion, the largest in Maryland's history. Since last year, while our economy remained in recession, our budget grew by 6 percent. Since 2008, state spending has grown by more than $4 billion, but funding for transportation and public safety have decreased by $450 million and $20 million, respectively. (Also since 2008, funding for natural resources is down 12 percent, and funding growth for elementary education has not kept pace with inflation.)

Maryland has record spending, record spending growth and record tax rates — yet our elected officials claim not to have money to maintain our roads and bridges, or for public safety, natural resource projects or even elementary education. So where does all the money go?

Since 2008, Maryland's spending on health (primarily driven by Medicaid) and human resources (primarily assistance to lower-income families) has increased by more than $3 billion, or 34 percent. While providing services for low-income Marylanders is certainly noble, if we could provide the same services for lower costs, funds would be available for transportation, public safety, natural resources and elementary education, without relying on tax increases.

To put health and human resources growth in context: If their growth since 2008 was just 11/2 times the rate of inflation, Maryland would enjoy a $1.8 billion surplus, and toll increases and cuts to transportation and public safety would be unnecessary. For lessons in controlling costs without compromising quality, Maryland could learn some lessons from the Hoosier State.

I've discussed these issues with Indiana Gov. Mitch Daniels. He believes, as I do, that state government should be limited, active in service and highly effective. But resources are finite. Constantly increasing taxes, tolls and fees on Maryland families is not the answer. Governor Daniels has proven the secret to controlling costs while maintaining excellent service is to trust citizens to make more of their own decisions.

Much attention has been focused on Wisconsin Gov. Scott Walker's elimination of collective bargaining power for state workers. Governor Daniels enacted similar legislation in Indiana six years ago. Employees were also given the choice to opt out of union representation if they felt it was not in their best interests, and the vast majority of state employees have done so. Since then, spending on state employees is down, but employee compensation has increased. And the average time for a visit to the Indiana Bureau of Motor Vehicles? About eight minutes. Giving state employees more control over their careers has resulted in higher pay for employees, lower cost for taxpayers, and demonstrably improved service for citizens.

When it comes to collective bargaining, unions can serve an important role. But we should all oppose monopolies, and we should all oppose coercion. Unions must be held accountable to their members, and the greatest way to do so is to make union membership voluntary. If Maryland adopted such policies, all Marylanders, including our more than 70,000 state employees, would stand to gain. Instead, regrettably, our state has lately been moving in the opposite direction; under the Fair Share Act, passed in 2009, state workers who are not union members will be forced to pay fees.

Governor Daniels has also proven the best way to control escalating medical costs is to give all citizens, from state employees to those receiving public assistance, more control over their health spending. Participation in Health Savings Accounts in Indiana is at record levels, which has led to a decrease in emergency room visits, an increase in the amount of generic drugs used, and health care cost increases that track inflation. Compare that to Maryland, where health spending since last year increased more than 10 percent.

The majority of our state employees are excellent at their jobs, and they should be rewarded. Instead, they are forced to subsidize those who don't share their values or their work ethic. At the same time, if low-income Marylanders were given control over their health decisions, we would have plentiful funding for our shared priorities — including transportation, public safety, and even natural resources and elementary education.

Maryland is not suffering from a lack of toll receipts at our bridges and tunnels. We are suffering from a lack of imagination and limited choices for state residents. Instead of constantly passing more taxes and fees on to Maryland families, we should encourage innovation in our state government and in state programs. That's an infrastructure project on which we can all agree.

Brian H. Murphy is a former Republican candidate for governor of Maryland. His email is This email address is being protected from spambots. You need JavaScript enabled to view it..

Toll authority "got everything it wanted" from lawmakers in Austin

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Regional Mobility Authority
At the Alamo RMA's July Board Meeting, its illegally hired taxpayer-funded lobbyist, Brian Cassidy gave a report on how well he did bringing home the anti-taxpayer legislation in Austin during the 82nd legislative session. Texas Govt Code Chapter 556 specifically prohibits state money from being used to hire lobbyists. Here's what the RMA's lobbyist "got" them: the right of first refusal to develop all toll roads in its jurisdiction, the right to own all state highways it tolls in perpetuity, the ability to raid tolls from one corridor to give it to another, the re-authorization of design-build CDA contracts that eliminate low-bid competitive bidding, and the right to levy toll taxes in perpetuity. All this by UN-elected boards!

Watch it below...

Builder of TX toll roads may default in Indiana

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Public Private Partnerships
Link to article here.

Star-Telegram.com

Builder of Texas roads may default on Indiana project

Posted Saturday, Jul. 16, 2011

By Gordon Dickson

This email address is being protected from spambots. You need JavaScript enabled to view it.

Texas officials are watching with concern as reports surface about a possible default on a $3.8 billion Indiana toll road project being built by the developer that is financing major highway and toll projects in Dallas-Fort Worth, Austin and San Antonio.

Cintra, the Spain-based company that leads a team operating the Indiana Toll Road, has used up most of its rainy-day fun and is running out of money to pay debt. The shortfall is the result of lower traffic -- and lower toll revenue -- than originally forecast, according to financial news reports.

Cintra and its partners are also building the $2.1 billion North Tarrant Express, which involves the reconstruction of Loop 820 and Texas 121/183 in Northeast Tarrant County. Cintra is also the lead partner in the LBJ Express, which includes the expansion of Interstate 635 in Dallas.

The projects include both toll and free lanes.
The company is also lead partner in two segments of the Texas 130 toll road project between Austin and San Antonio.

Collectively, that's about $5 billion worth of road work in Texas, much of it financially structured similarly to the Indiana project -- using tolls to pay off debt over many years.

Cintra acknowledged using a rainy-day fund to pay debt for the Indiana project but disputes reports that it may not make required payments.

"The Indiana Toll Road is not in default, nor is default expected," Patrick Rhode, Cintra U.S. vice president for corporate affairs, said in an e-mail.

"The performance of one project, even in the unlikely case of a default in its debt obligations, has no influence whatsoever in the performance or ability to perform obligations of the same investors in other projects."

While nothing indicates that the Texas projects are at risk, transportation officials are privately expressing concern about whether Cintra and other developers will complete the work, considered an indispensable part of Texas' plan to handle population and economic growth over the next half-century.

Bill Meadows, a Texas Transportation Commission member, has asked for an analysis of the state's 52-year contracts with Cintra and its partners -- NTE Mobility Partners on the North Tarrant Express project -- as it relates to default.

With a default, the project could return to the state, which means that taxpayers and motorists could be left with an unfinished road, according to a Star-Telegram review of the state's contract with the North Tarrant Express developer. If no other developer could be found, public money would be needed to complete whatever portion of the 52-year project wasn't finished.

"It's a poignant reminder of the importance of the contract being constructed properly, because this is what can happen," said Meadows, a Fort Worth businessman and advocate of private road development. "It's important for people to know that our agreements will certainly anticipate that. The people of Texas' interests will be protected."

Rainy-day fund

Cintra and its partner, Australia-based Macquarie, leased the Indiana Toll Road in 2006. The team, ITR Concession Co., paid the state $3.8 billion for the right to collect tolls for 75 years.

In May, a report in the financial publication Debtwire said that the companies had used up about two-thirds of a $150 million interest reserve account set up in 2006 and that the account could be drained by year's end. The account is meant to ensure that the developer can pay bills even when revenue is down, and it must be maintained to keep the group's $4.1 billion in loans in good standing.

Royal Bank of Scotland, the lender, has assigned the project to its workout group to see whether the problem can be resolved, Debtwire reported.

The revenue shortage comes after Cintra and its partner raised tolls dramatically on the road, which stretches 157 miles from Illinois to Ohio.

"The reserve fund was designed to cover financial gaps that occur over long periods of operations, and it is being utilized as anticipated. We continue to meet all financial considerations, and we look forward to providing safe, reliable transportation services on the ITR for motorists now and in the future," Rhode said in the e-mail to the Star-Telegram.

In Indiana, default could mean that the toll road -- which is more than 50 years old -- would simply return to the state. Indiana taxpayers would pocket the $3.8 billion concession fee originally paid by Cintra and Macquarie.

Cintra's contracts in Texas involve roads being built and scheduled to be maintained and expanded numerous times over the next 52 years as the region grows. The contract for North Tarrant Express gives the company the power to raise tolls to pay debt, with the expectation that higher tolls will reduce traffic. A default here could leave residents with an unfinished road and a bill that taxpayers would have to cover if another developer didn't take over.

The current construction on the North Tarrant Express -- the makeover of lanes on 820 and 121/183 and the addition of two toll lanes in each direction -- is expected to be completed in 2015. Future phases, however, including the proposed addition of lanes on Interstate 35W north of downtown Fort Worth, could cost $5.7 billion, according to preliminary estimates.

Given the state's limited highway revenue and with no increases in the motor fuels tax or vehicle registration fees expected anytime soon, if the North Tarrant Express developer defaulted and were removed from the project, the state probably wouldn't complete the work unless it issued additional debt.

What the contract says

For the North Tarrant Express, construction is backed by a $250 million performance bond in case a developer defaults before the road opens, said Kelli Petras, Transportation Department spokeswoman.

Once the road opens, the main protection against financial default is a $40 million debt service reserve fund, which Cintra and its partners agreed to set up, the consortium's contract with the state shows. Cintra's partners in the North Tarrant Express project include Meridiam Infrastructure of Luxembourg and the Dallas Police and Fire Pension System.

The debt service money comes from the developers' own private equity as well as an estimated $400 million pool of funds from the issuance of private-activity bonds.

The purpose of the debt service reserve fund is to give lenders comfort that bills will be paid -- at least for about a year -- in case of financial problems, Petras said. An additional $20 million is set aside for a major maintenance reserve fund to ensure that money is on hand for about 10 years' worth of repair and upkeep, according to the contract.

The North Tarrant Express project includes $570 million in public funds from the state, but none of that money can be used for either rainy-day fund, Petras said. Of the state's commitment, $70.6 million has been paid out for ongoing construction, and $32.5 million is being paid as workers cordon off shoulders, close frontage roads and remove thousands of tons of dirt to make way for new lanes.

Default could occur for various reasons, including failure to pay bills or meet construction deadlines, a bankruptcy filing or an increase in tolls beyond permissible levels. A noncompliance point system grades each violation for seriousness, and the Transportation Department can build a paper trail and determine over time -- typically 30 to 120 days -- whether the developer has persistently defaulted on its agreement or failed to cure any violations.

If the developer is found to be in persistent default, the contract lets the Transportation Department take over operations of North Tarrant Express with no obligation to pay the developer's debts. The department could use the toll revenue, bond programs or state highway tax revenue to complete the project, Petras said.

Risk vs. reward

The idea of leasing American highways, bridges and toll roads to private developers has been a hot-button issue since it was proposed about a decade ago. But it's a risk that officials in Texas and many other states are willing to take.

"States are under pressure because they need the money," said Robert Puentes, a senior fellow at the Brookings Institution in Washington. "It's probably the wrong reason to do one of those deals, but it's the reality. There just may be a crisis moment when they start doing this because they need to plug gaps in their budgets."

Texas, Virginia, Michigan, Colorado and Oregon are among states learning as they go when it comes to structuring contracts with developers, Puentes said. The projects are known as comprehensive development agreements in Texas and public-private partnerships in other states.

Supporters of comprehensive development agreements say that even in case of a default, Texas is getting a bargain on projects such as the North Tarrant Express. The initial $2.1 billion in construction includes only $570 million in state highway funds. The rest comes from an estimated $600 million federal transportation infrastructure loan, bond revenue, and private equity arranged by Cintra and its partners.

Gov. Rick Perry and others believe that the reward outweighs the risk that something could go wrong during the 52-year contract, a longtime adviser said.

"We tried not to micromanage it, but we definitely big-pictured it," said Kris Heckmann, who was a policy adviser for Perry for nine years before co-founding a lobbying and communications firm in Austin. Perry "would just tell them to keep the important principles in mind. Make sure the reward and risk balance out. Don't let us get taken advantage of.

"TxDOT, to their credit, has learned a lot in the past four years," Heckmann said. "It's all about risk and reward. Let's say they've built half the project and go into default. It wouldn't be a disaster for the state, if the state gets the project back."

Gordon Dickson, 817-390-7796

ARMA insults TURF Founder at public hearing

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Regional Mobility Authority
Alamo Regional Mobility Chairman, Bill Thornton, breaks decorum by insulting Terri Hall, TURF Founder, after she gives public comment on behalf of taxpayers at the July ARMA Board Meeting. Board members are supposed to sit and LISTEN to the public during public comment, not use it as forum to bash an advocate who brings up legitimate concerns with spending millions of dollars on studying toll scenarios and financial risk assessment. Hall got a chance to respond during another agenda item, but you can read the body language of the Board, they didn't care nor listen to the plight of taxpayers or question the fiscally reckless decisions they're making.

Watch it below...

Privatized Indiana Toll Road in trouble

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Public Private Partnerships
Link to article here.

Best line of this story -- "The bottom line: A toll road held up as an example of public-private partnerships shows no signs of breaking even for its conglomerate."

 
State Budgets July 07, 2011, 5:30 PM EDT

The Public-Private Indiana Toll Road Is in Trouble

The problems facing the nation’s largest public-private road venture show how difficult it can be to apply business principles to sprawling public projects

By Carol Wolf

Eleven million trucks. That’s how many 18-wheelers needed to rumble across northern Indiana in 2010 for the state’s 157-mile toll road to break even. Unfortunately, only about half that many did and the road came up $209 million short. This sounds like the beginning of yet another story about recession-ravaged states bleeding cash. And it is, sort of. The twist is that the Indiana Toll Road is managed not by the state but by a group of corporate investors, part of a public-private partnership experiment intended to show how businesses can help government run more efficiently and save taxpayers money—all while turning a profit.

President Barack Obama and politicians from both parties have held up such private sector alliances as a model for the future, as cities and states find it increasingly difficult to shoulder the enormous cost of building and maintaining roads and bridges. California, Illinois, Michigan, Kentucky, and Georgia are all courting investors, hoping to strike deals in which corporations will assume some of the expense and risk in exchange for a share in the profits. This moneyloser in Indiana shows how difficult it can be to apply business principles to sprawling public projects.

Now five years old, the Indiana deal has yet to turn a profit, or break even. Two overseas companies—Cintra Concesiones de Infraestructuras de Transporte, a unit of Madrid-based Ferrovial, and Macquarie Infrastructure Partners, an investment fund managed by Macquarie Group (MQG) of Sydney, won the right to run the road with a daring $3.8 billion bid—$1 billion more than the next-highest offer. The companies each owned a 50 percent stake of the project, which was backed by several overseas banks. The group then attracted other investors who bought pieces of the deal.

It turned out to be a bargain for the taxpayers of Indiana. The state received the upfront payment and has avoided more than $100 million a year in operating costs. “The state got a great deal,” says Jane Jankowski, a spokeswoman for Indiana Republican Governor Mitch Daniels. “The lease agreement contains numerous protections for the taxpayer and travelers and ensures the continued successful operation of the road.”

The private investors haven’t made out so well. Had the road been profitable, they stood to make millions per year over the life of the 75-year project. As it is, they have not been able to get past the debt they incurred winning the bid. They have met their annual debt payments only by borrowing money and may default before loans mature in 2015, according to disclosure documents from Macquarie Atlas Roads, one of the investors. The project’s 2010 prospectus said that revenue from the highway is “expected to remain insufficient to cover debt service obligations over the medium term.” The document cautions that “any default under the loan documents may lead to lender actions which may include foreclosure of the project assets or bankruptcy.” Even Governor Daniels, who had enthusiastically backed the venture, recently said that the foreign investors had overpaid.

In an e-mail, Macquarie spokeswoman Paula Chirhart said the prospectus was prepared in 2009 during the global financial crisis and “was never stated as a forecast or an expectation.” She added that “we expect the Indiana Toll Road to continue to meet its debt service payments as they fall due.” Patrick Rhode, a Cintra spokesman, said in an e-mail that more vehicles are using the Indiana road as the economy recovers. A reserve account was created to cover financial gaps that occur over long periods of time, he said. “We do not expect a default.”

Even so, the poor results could dampen enthusiasm for similar projects elsewhere. In Ohio, which faces a budget shortfall of as much as $8 billion over two years, lawmakers are considering a bill that would give Republican Governor John Kasich the authority to seek a sale or lease of the Ohio Turnpike. Kasich has optimistically suggested the road might be worth $3 billion. Given the way things are going next door, he may have a hard time finding takers willing to plunk down that kind of cash.

The bottom line: A toll road held up as an example of public-private partnerships shows no signs of breaking even for its conglomerate.

Wolf is a reporter for Bloomberg News.

TxDOT to consider public-private partnership for Grand Parkway

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Public Private Partnerships
Link to article here.
 

TxDOT to consider public-private partnership for Grand Parkway

 By Marie Leonard    Friday,

Community Impact Newspaper

08 July 2011

HOUSTON — Texas Department of Transportation officials are in the early stages of considering a public-private partnership to develop portions of the Grand Parkway, Houston’s third outer loop.

TxDOT stopped accepting responses July 6 for a request for information about how the state agency could develop the parkway with a public-private partnership.

When state legislators passed HB 2255 this spring, it gave TxDOT the authority to investigate what a public-private partnership could mean for the Grand Parkway. A public-private partnership is a means by which a public agency, like TxDOT, can partner with the private sector to deliver a project.

“This legislation gives us the authority to look at how we can [develop the Grand Parkway] in a partnership where there are shared risks and gains in terms of being able to deliver the project in an efficient timeframe that preserves the interest of the state,” said Raquelle Lewis, TxDOT spokesperson.
TxDOT issued the request for information June 10 in an effort to gather potential strategies from partners interested in the project, Lewis said.

“If you look at it from the big-picture perspective, TxDOT has been looking at the option of a public-private partnership for many years,” she said. “The biggest catalyst has to do with the lack of funding and the need to look at an array of solutions to bring forth projects that are critically needed in terms of transportation.”

A public-private partnership could include working together with a company in terms of a number of steps, relative to design, construction, maintenance or operation of a project, Lewis said.

“It could be a combination of any of those,” she said.  “That’s what we are exploring at this time.”

The public-private partnership could affect Grand Parkway segments E, F-1, F-2, G, H and I-1. Segment E runs from IH 10 to Hwy. 290. Segment F-1 runs from Hwy. 290 to Hwy. 249, north of Cy-Fair, and Segment F-2 will connect Hwy. 249 to IH 45, south of Tomball.

Although funding is different for each segment, the responses from the request for information could focus on how the state constructs segments yet to be built, like F-1 and F-2, or how sections are maintained after construction, Lewis said.

If TxDOT decides to enter into a public-private partnership to develop the Grand Parkway, an agreement will most likely be awarded next summer, according to a timeline on the request for information.

According to the request for information timeline on TxDOT’s website, the following dates could signify how the agency will move forward investigating a public-private partnership:

-One-on-one meetings: July 2011

-Request for qualifications issued: August 2011

-Proposer submission of qualification statements in response to RFQ: October 2011

-Proposers eligible to submit detailed proposals: November 2011

-Draft RFP to short-listed proposers: November 2011

-One-on-one meetings with short-listed proposers: December 2011

-Final RFP issued to short-listed proposers: January 2012

-Proposer submission in response to RFP: May 2012

House Republican wants to sell our roads to private corporations

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Public Private Partnerships
Privatization & debt: The flaws in Mica’s proposal
By Terri Hall
July 8, 2011
Examiner.com

It comes as no surprise that Congressman John Mica (R - FL), Chairman of the U.S. House Transportation and Infrastructure Committee, wants to privatize transit and enter into yet more DEBT to fund roads. What is surprising is his proposal to expand the federal TIFIA loan program by nearly 10 times while also making this claim in the opening statement of his just released proposal for the new federal highway re-authorization bill: “They (the American people) want Washington to live within its means and make the difficult but necessary spending decisions that all Americans are forced to make for their own households. They want reform.”

How is expanding its borrow-and-spend debt spiral by 10 times living within its means? The very first TIFIA loan in America was awarded to the South Bay Expressway privatized tollway in San Diego. No public highway should be handed over to a private corporation using these sweetheart deals known as public private partnerships (PPP).

They have profit guarantees, result in markedly higher toll rates, and have gotcha provisions that ensure the surrounding free lanes stay congested to guarantee the private investors have enough toll payers to make their money back. The toll rates on a privatized tollway cost as much as 75 cents per mile, which is like adding $15 to every gallon of gas you buy.

Privatizing means public money for private profits

PPPs are nothing more than public money for private profits. Fannie Mae and Freddie Mac are two visible examples. Both were massive failures that caused the global financial meltdown and subsequent taxpayer bailouts. It’s why conservative commentator Michelle Malkin called PPPs ‘corporate welfare.’ It's also why Sen. Dick Durbin and Penn State Professor Ellen Dannin have cautioned against them.

Not quite three years after the tollway opened to traffic, the South Bay Expressway went bankrupt and the taxpayers had to take a nearly $80 million hit on the chin as the private consortium wrote down its debts. The traffic projections were off by over 40,000 cars per day, which has been a longstanding pattern since this new push for tolling.

Overly optimistic traffic forecasts make toll roads look good on paper to investors to get the project built, but end-up costing taxpayers dearly when the traffic doesn’t show up. So to keep their heads above water, the public or private entities hike tolls to make-up for the losses (counter-intuitive since raising rates sheds more drivers), inject more public subsidies, or eventually default or go bankrupt.

At a time when Americans struggle to keep food on the table and pay its bills, the federal government is forgiving the debt of yet more private corporations at our expense. And Mica wants to expand this privatization failure to transit, which has never been able to pay for itself and has always required public subsidies to survive.

Mica’s summary also states his bill is fiscally responsible by “improving programs that don’t work while building upon programs that work well.” It defies logic to think you’re ‘improving’ a program by expanding it. Throwing 10 times more money at it won’t fix the fundamental flaw of public subsidies for private profits.

When PPPs grant the power to tax to private corporations, no elected official can claim to be doing his fiduciary duty to protect the public interest and ensure there’s no taxation without representation and still support PPPs. Taxpayers can’t pressure the board of a corporation if the toll rates get too high. Politicians know this. That’s why they wish to outsource the pesky tax hikes to a private corporation.

'Leveraging' means DEBT

The proposal goes on to say that “this fiscally responsible, multi-year proposal follows these clear mandates from the American people and creates long-term jobs by: Better leveraging and maximizing the value of limited federal resources...” “Leveraging” is code for DEBT. Debt on the federal level through the TIFIA loan program and debt pushed down to the state level through state infrastructure banks. Debt that must be repaid by taxpayers no matter which level of government does it.

Plus, according to the Weekly Standard the stimulus program spent $185,000 (adjusted downward from $278,000 per job using the peak of 3.6 million jobs) to create a single job and those jobs were short-lived and now fading from the scene.  So there’s no credible way to claim building transportation infrastructure creates long-term jobs. It doesn’t.

Then, how is borrowing money we don’t have fiscally conservative and an example of Washington living within its means? It’s not, it’s more smoke and mirrors by disingenuous politicians using buzz words to tickle our ears and put us back to sleep.

But we’re not going back to sleep. The American people are alert and attune to their government as never before in this generation. They know now that they can’t trust what politicians tell us, they have to VERIFY everything. Politicians are not going to get away with playing us for fools. They're setting us up for an infrastructure DEBT BOMB that will be deemed 'too big to fail,' and then they'll come to the taxpayers for yet another bailout. Remember that the last federal highway bill was plagued with over 6,000 earmarks that greatly contributed to voters dumping the Republicans in the following midterm elections.

Americans need to contact their representatives and demand they properly fund our public infrastructure without more earmarks, debt, tolls, and infrastructure banks. Punting by privatizing our PUBLIC roads at a cost far higher to taxpayers than our affordable, gas tax-funded public highway system is NOT an acceptable, nor fiscally responsible solution.


Continue reading on Examiner.com Privatization & debt: The flaws in Mica’s proposal - San Antonio Transportation Policy | Examiner.com

Keystone Pipeline may gain approval despite opposition

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Public Private Partnerships
Link to article here.

These tarsands oil pipelines are part of the original Trans Texas Corridor concept. TransCanada, a foreign corporation, has already gained a reputation of bullying and deception to get access to Texans' land for its own profits. This new source of oil is not even likely to benefit to Americans, but rather sold to the Chinese.

Keystone: Pipeline Battle Pits Economy vs. Environment, Again

By James Rosen

Published July 04, 2011 | FoxNews.com

Keystone-XL will rank alongside the pyramids in Giza as one of the most ambitious construction projects ever undertaken – if the $7 billion pipeline ever gets built.

The proposed route runs south over 330 miles of southern Canadian soil, clipping the corner of Saskatchewan to reach the border with America, then snakes gently southeast across seven U.S. states, extending another 1,370 miles until it branches off to hit two destinations in the Gulf of Mexico.

But none of that will happen unless and until the State Department green lights the initiative. If granted, that will take the form of a presidential permit, required because the company applying for it, TransCanada, is a foreign-owned corporation. And to the dismay of environmentalists, the Obama administration appears likely to give that approval before year’s end.

Energy industry sources claimed the new pipeline would bring online an additional 830,000 barrels of crude oil a day. The source for the black gold is the rich deposits of bitumen found in Alberta, Canada, from which the crude is extracted. Already, an existing Keystone pipeline – originating in the same place but running to refineries in Oklahoma and southern Illinois – sends approximately 500,000 barrels of crude a day to American consumers.

Proponents of Keystone-XL in both countries, including numerous lawmakers in the U.S. Congress, say proper exploitation of the Alberta “oil sands” would immediately create 20,000 direct American jobs, and generate $34 billion in revenue for the U.S. Treasury. Greater rewards would accrue over time, they say.

“The U.S. oil and natural gas industry right now supports 9.2 million jobs throughout the economy,” said Marty Durbin, vice president of the American Petroleum Institute, a trade group representing 400 companies involved in various facets of oil production and distribution. “Through full utilization of Canada's oil sands, we can actually create 340,000 U.S. jobs between 2011 and 2015.”

Keystone-XL’s opponents warned that the proposed route would take the pipeline over the Ogallala Aquifer, which provides drinking and irrigation water to eight states. Environmentalists have also cautioned that the kind of pipe TransCanada proposes to use is dangerously susceptible to rupture, and that the “life-cycle” emission of greenhouse gases from tar sands oil, such as that found in Alberta, exceeds the average for crude oil imported from other sources, like Venezuela and the Middle East.

“The pipeline would pump some of the dirtiest oil on earth down from Alberta, Canada and put our farms at risk of oil spills, and it will increase pollution in communities surrounding refineries,” said Alex Moore of Friends of the Earth. “It has much higher levels of heavy metals like lead, and when it's refined those metals end up in the air – and that means more kids with asthma, and it means more elderly people with respiratory diseases.”

The most recent draft text from the State Department found that the Keystone-XL project would pose only “limited adverse environmental impacts.” Moreover, the department’s analysts found that an additional period of public comment on the project had turned up "no new issues of substance."

Both of those conclusions drew fierce dispute from environmental critics. They cite the pipeline explosion that occurred near Kalamazoo, Michigan last July, sending more than 850,000 gallons into the Kalamazoo River and prompting then-Gov. Jennifer Granholm to declare a state of emergency. That pipeline, operated by Enbridge Energy Partners, also originated in the oil sands of Alberta.

Moore said there are “hundreds” of pipeline accidents each year, and faulted the State Department for conducting an incomplete analysis. “Their first draft analysis did not include adequate analysis of oil spills, of pollution in communities surrounding refineries, and whether or not we really need this pipeline,” he said.

Still, analysts in and out of the energy industry predicted the Obama administration would allow Keystone-XL to proceed. In an April 19 newsletter the Eurasia Group, a private capital risk-assessment group, told subscribers approval was “likely.”

The group cited President Obama’s speech on “America’s Energy Security,” delivered at Georgetown University on March 30, as evidence of which way the administration is leaning. “When it comes to the oil we import from other nations,” the president said, “obviously we've got to look at neighbors like Canada and Mexico that are stable and steady and reliable sources."

Canada is already America’s leading source of foreign oil, exporting to the U.S. an estimated two million barrels per day.

With input from nearly a dozen other federal agencies in hand, the State Department is expected to issue its final ruling by year’s end. Last month the Republican-controlled House Energy and Commerce Committee voted to approve a measure that would force the State Department to rule on Keystone-XL by November 1.

Toll hikes for Washington roads

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Public Private Partnerships

Link to article here.

Tolls will continue to jump on Washington roads

By: Lisa Gartner | Examiner Staff Writer @Lisa_Examiner | 07/02/11 8:05 PM

Beginning in October, travelers on the Chesapeake Bay Bridge will pay$5, as opposed to the current$2.50, to cross.-Andrew Harnik/Examiner

Beginning in October, travelers on the Chesapeake Bay Bridge will pay $5, as opposed to the current $2.50, to cross.-Andrew Harnik/Examiner

This is the last July Fourth weekend that Washingtonians will pay $2.50 to cross the Chesapeake Bay Bridge as they head for a getaway at the popular Atlantic Ocean beaches.
The toll will double to $5 in October and jump to $8 by 2013, shocking Marylanders.

But transportation analysts say drivers should get used to paying a high fee to cross a bridge or drive on a road -- tolls will increasingly replace gasoline taxes as the way states will pay for their transportation infrastructure in the future.

"The actual value of the gas tax hasn't been going up the way it needs to to pay for the roads we want, so there's a new interest in toll roads now," said John Gilmour, a government professor at the College of William & Mary in Williamsburg, Va. "Because of political pressure against raising taxes, if they're going to build new roads, they have to be toll roads."
The toll man cometh

Tolls for two-axle vehicles
Maryland    Rate before July 1, 2011    As of Oct. 1, 2011    As of July 1, 2013    Reason
Hatem Memorial Bridge    $10/year with decal, $5 for trip    $72/year EZPass plan to replace decal, $6 for trip    $8    $132 million in repairs needed
Bay Bridge    $2.50    $5    $8    $225 million needed to maintain Bay Bridge over next six years
Nice Bridge    $3    $5    $8    $21 million in repairs needed
I-95 Turnpike (Kennedy Highway)    $5    $6    $8    $121 million needed for highway work
Key Bridge    $2    $3    $4    $410 million needed for combined work on Fort McHenry, Francis Scott Key and Baltimore Harbor Tunnel repairs
Baltimore Harbor Tunnel    $2    $3    $4    see Key Bridge
Fort McHenry Tunnel    $0.90    $2.70    $3    see Key Bridge
ICC    $1.45/peak, $1.15/off peak/$.60 overnight    Only toll exempt from raise
Virginia    Current    Jan. 1, 2012

That's certainly the case with the carpool lanes being built on the Capital Beltway in Virginia that solo riders can buy their way into -- dubbed "Lexus lanes" -- and the brand-new Intercounty Connector, whose high tolls must help cover the $1.2 billion in toll-backed bonds that went into the road's $2.56 billion in construction costs. Maryland officials also want the toll to be high enough to discourage some drivers and defeat congestion.

Tolls on the Bay Bridge, Nice Bridge, Interstate 95 Turnpike, Key Bridge, the Baltimore Harbor Tunnel and Fort McHenry Tunnel will jump in October and skyrocket by 2013 to fund repairs and expand the area's transportation network.

The Dulles Toll Road will raise fares next year, while the Delaware Memorial Bridge's toll increased from $3 to $4 on July 1 to generate $21 million for the bridge and a ferry.

Peter Samuel, editor of Tollroadsnews, explained that the increases seen around Maryland are so steep because legislators have kept tolls stable for decades. "They're playing catch-up to an extent. I think they probably should have bit the bullet on tolls three or four years ago," he said.

But tolls are polarizing, and politicians need points. The pro-toll philosophy says it makes sense to get the money to fix roads from the people who choose to use them: States are strapped to find other funding sources, and drivers can always take the traffic-heavy free routes.

But drivers say they're fed up with tolls -- and may even abandon roads and bridges that are getting pricier.

"It's not a small increase -- it's a slap in the face," said Marianne Jansa, a 53-year-old Hanover, Md., resident who drives over the Bay Bridge every weekend. "Most of the people I've talked to said they're going to stop going over there."

Jansa said she wasn't sure where she thought the money to repair the bridge should come from, but said that it certainly shouldn't come from her change purse.

Ed Kline, a 52-year-old from Hughesville, was headed to the Eastern Shore and was speechless to learn of the upcoming toll increase. "Wow," said Kline, who thinks in the future he'll go to the Outer Banks instead.

While there aren't many alternatives to pay for roads -- Republicans especially don't want to raise taxes and no one wants to see the price of gas climb any more -- Gilmour said it's the tangibility of the tolls that get people going.

"The problem with tolls is that people hate paying for them, and they have to wait to pay for them," Gilmour said. "This weekend, people will be waiting a long time just for the privilege of paying a toll."

Amy Myers contributed to this report.


Read more at the Washington Examiner: http://washingtonexaminer.com/local/2011/07/tolls-will-continue-jump-washington-roads#ixzz1RNhmci6S

Lawmakers raid dedicated taxes to balance budget....AGAIN!

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Link to article here.

Yet more diversions of road taxes to non-road uses. How many times have we been promised that lawmakers will end the diversions of gas taxes fro non-road purposes? So many I've lost count. If the Republicans can't get it done with a supermajority, then it NEVER will. Send these people home. They have not one SHRED of credibility as fiscal conservatives.

Texas lawmakers ease state budget cuts by holding back more dedicated taxes
 ROBERT T. GARRETT
Austin Bureau
Dallas Morning News
03 July 2011

AUSTIN — Texas lawmakers, who will do almost anything to avoid raising broad-based taxes, balanced the budget this year with one of their favorite flavors of money: dedicated funds.

Budget writers set a record by refusing to spend $4.1 billion raised from fees and taxes that are designated for a particular area — about 40 percent of what’s available from those fees. This let them avoid deeper spending cuts in the overall budget because they could pretend they had that much more in general revenue.

In other words, just three-fifths of the $10.5 billion of dedicated funds, including past balances, will be available for the intended causes through August 2013.

Separately, lawmakers increased their “diversion” of gasoline taxes to agencies other than the highway department. And when it came time to dole out sales taxes from sporting goods, they spent 44 percent less on parks than they did last time. “Our budget situation has gotten out of hand, and we’ve become so dependent on this deception,” said Sen. Kirk Watson of Austin, recently chosen as the Senate Democratic leader.

The result is that programs intended to be fed by the designated money, from electricity discounts for the poor to incentives for medical students who practice in areas short of doctors, face deep cuts.

Watson, who has fought to limit and shed light on the dedicated-money maneuvers, said pledges that Gov. Rick Perry and other Republicans made five years ago to handle taxes in a more straightforward fashion have been hollow. Slight progress was made in boom times, he said, but the effort was scrapped as soon as the economy dipped.

“The state has become like the old drunk who says, ‘I’ll stop this by having one less drink per day,’ but unfortunately can’t even pull that off,” said Watson, who authored a provision now on Perry’s desk that would require Comptroller Susan Combs to publish an annual schedule of unspent fees and taxes once touted as dedicated to certain causes.

The governor essentially endorsed the budget maneuvers last month when he signed the two-year spending plan into law. Spokeswoman Lucy Nashed, though, said the Republican “continues to be a strong proponent of truth in budgeting and truth in taxation, so Texas taxpayers know their hard-earned tax dollars are being spent on their intended purpose.”

She noted that when the state was flush with revenue in 2007, Perry helped lead a successful push to end a 1.25 percent surcharge on telephone bills three years early, saving consumers about $600 million.

Chief budget writers Sen. Steve Ogden, R-Bryan, and Rep. Jim Pitts, R-Waxahachie, said not spending — and in some cases, rerouting — dedicated fees and taxes helped them ease a two-year budget shortfall of $23 billion without dealing out more pain to education and Medicaid.

“It looks bad, but it’s not a lot different than any other entity — when their operating revenues are running short, they withhold some of their savings,” Ogden said.

In a Senate debate with Watson in May, he acknowledged that “we are continuing to rely on excess fee revenues to balance our budget instead of reforming … our rickety tax system.” But he said last week that he believes voters endorse the tactics in tough times.

Rep. Warren Chisum, a former House Appropriations Committee chief, said much of the outrage lawmakers hear over the practice involves specialty license plates. Budget writers in the past wouldn’t spend all the funds raised from “Animal Friendly” plates supporting spay-neuter efforts at animal shelters and “Share the Road Y’all” plates supporting bicyclist safety programs.

“But that’s peanuts,” the Pampa Republican said of the money generated by the plates.

In the next two-year cycle, the nearly three dozen specialty plates mentioned in the budget are expected to raise $3.4 million, of which $3.1 million will be spent for the intended causes, said fiscal expert Eva DeLuna Castro of the Center for Public Policy Priorities, a center-left think tank.

In the just-finished special session, Rep. Geanie Morrison, R-Victoria, passed language on a stopgap spending bill that killed the budget’s call for the state to sit on half of the money raised by many of the plates.

“You can’t just hold that money,” she said, citing “very passionate” supporters of the plates. Abortion-rights opponents will soon join them, with the creation of a “Choose Life” plate.

Where the money doesn’t go

Health care lobbyists, environmentalists and advocates for the poor are angry at lawmakers’ hoarding of money that residents don’t fork over willingly. Some examples:

Most residential users of electricity in North Texas — except for Denton and Garland, which have city-owned utilities — pay a surcharge of about $1 a month to support a 10 percent discount on bills for elderly and poor people. But after Republicans gained control of the Legislature in 2003, they tightened eligibility and eliminated the discount for October through April, choking off help and building up a surplus soon to exceed $800 million.

“The Legislature preys on those who are voiceless and don’t have the resources to hire lobbyists,” said Rep. Sylvester Turner, D-Houston. He favors repealing the surcharge and giving discounts with the stockpile, which at current spending rates would last eight to 10 years.

Part of the “driver responsibility surcharges” added to major traffic tickets is supposed to go to trauma centers. But over the next two years, 47 percent of the money raised will go unspent, up from 37 percent last time. And that’s not touching $224 million that sat idle as of Aug. 31.

A chunk of the vehicle-emission testing fees collected in polluted urban areas such as Dallas-Fort Worth was intended to help low-income motorists repair or retire their smoke-belching “clunkers.” But in the next budget cycle, 49 percent of the money earmarked for that purpose will go unspent, after an unusually heavy amount of spending lawmakers approved in 2009.

A tax increase on smokeless tobacco passed two years ago is supposed to generate $60 million for general purposes and $60 million for doctor loan repayments over the next two years. Lawmakers, though, chose to spend only 9 percent of the money available to help pay off the loans of medical school graduates willing to practice for four years in underserved communities.

Three-quarters of the state’s gasoline tax of 20 cents a gallon is supposed to go to road-related activity, with the rest earmarked for public schools. The fuel tax and registration fees go into a state highway fund.

But the Texas Department of Transportation calculates that in the next two years, $1.357 billion — or 18 percent — of the revenue will go to non-transportation uses. That’s up by just over $200 million from “diversions” approved in the 2009 session, with nearly half of the increase going to pay for stepped-up patrols at the border with Mexico.

Former House Transportation Committee chief Joe Pickett, D-El Paso, said the practice “is keeping [highway] projects from being built in communities all over Texas.”

Pitts notes, though, that 96 percent of the money not flowing to the highway department pays for the Department of Public Safety. He said that’s permissible because the state constitution allows spending on “policing” of the highways.

Another move considered by some a diversion involves a vague area of state law — an effort by lawmakers nearly two decades ago to help state and local parks. At that time, they stopped devoting part of the cigarette tax to parks, and substituted part of the sales tax on sporting goods.

Four years ago, Rep. Harvey Hilderbran, R-Kerrville, successfully pushed to remove a cap on the flow of sales-tax money to the parks.

The victory was short-lived, though. Parks spending from the sales tax zoomed 46 percent in the current cycle. But it will drop below 2009-10 levels in the next cycle.

“It reflects the times,” said Hilderbran, now the House’s chief tax writer. “It’s just the climate we’re in.”

Sustainable Development: What's it gonna cost us?

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News
Link to paper here.

Henry Lamb is the Founder of Freedom 21, an organization to educate Americans about the United Nations' anti-freedom Agenda 21 policies. He's also the Executive Vice President of Environmental Conservation Organization. At the heart of Agenda 21 is public private partnerships (PPPs), which seek to abolish private property and restrict mobility. PPPs place Texas sovereign land taken for a "public use," hence our PUBLIC infrastructure, in the hands of private corporations whom the public cannot hold accountable. Lamb's article speaks to the freedom eroding costs of "sustainable development" Agenda 21 policies.

The Cost of Sustainable Development

A Briefing Paper
Prepared by
Henry Lamb, Executive Vice President

Environmental Conservation Organization

If there is a bedrock principle upon which our Declaration of Independence, our Constitution, and our nation was constructed, it is this: government is empowered by the consent of those who are governed. To translate this principle into self-governance, our Constitution provides for public policy to be enacted by elected representatives of those who are governed. To further protect those who are governed, our Constitution ingeniously balances the power of government among the legislative, administrative, and judicial branches. Balance occurs as the result of continuous competition among the branches of government, and among the three levels of government, federal, state, and local. American society is organized around this bedrock principle. The first course of bricks-and-mortar in our government, however, is the requirement that public policy be enacted by officials elected by those who are governed.

There are people who believe this method of public policy development is obsolete. The President's Council on Sustainable Development, for example, says:

"We need a new collaborative decision process that leads to better decisions; more rapid change; and more sensible use of human, natural, and financial resources in achieving our goals."(1)

There are people who believe there is a more important principle around which society should be organized. The Vice President of the United States says:
"We must make the rescue of the environment the central organizing principle for civilization. Adopting a central organizing principle -- one agreed to voluntarily -- means embarking on an all-out effort to use every policy and program, every law and institution, every treaty and alliance, every tactic and strategy, every plan and course of action -- to use, in short, every means to halt the destruction of the environment and to preserve and nurture our ecological system. Minor shifts in policy, marginal adjustments in ongoing programs, moderate improvements in laws and regulations, rhetoric offered in lieu of genuine change -- these are all forms of appeasement, designed to satisfy the public's desire to believe that sacrifice, struggle, and a wrenching transformation of society will not be necessary."(2)

We are witnessing in Missouri, and across America, a shift in the way public policy is being made. The power to make public policy is shifting away from elected officials to non-elected individuals who are using the "new collaborative decision process" to reorganize society around the central principle of "protecting the environment."

Were this initiative to arise from the people who are governed, expressed through their elected officials, defined and debated in public, and decided through a public vote by the appropriate governmental bodies, then there could be no complaint. But neither the change in the decision process, nor the adoption of "protection of the environment" as society's central organizing principle, are initiatives that arise from the people who are governed. Both ideas arise from the international community, crafted into policy documents by the United Nations and presented to the world through United Nations Conferences, particularly the United Nations Conference on Environment and Development in Rio de Janeiro in 1992.

Agenda 21, a 288-page "soft-law" (non-binding) document adopted by 179 nations in Rio, sets forth very specific public policy objectives designed to reorganize societies around the central principle of protecting the environment. The process called for is "a new collaborative decision process" called consensus building.(3) To comply with the UN's recommendation, Executive Order 12852 was issued June 29, 1993, creating the President's Council on Sustainable Development (PCSD). The Council, consisting of 29 non-elected federal officials and selected representatives of major environmental organizations and industry, proceeded to translate Agenda 21 into 154 specific public policy recommendations to be implemented throughout America. The purpose of the policy recommendations is "to achieve our vision of sustainable development." The Council adopted the UN's definition of sustainable development:

"...to meet the needs of the present without compromising the ability of future generations to meet their own needs."(4)

Throughout Missouri and across America, communities, both rural and urban, are being transformed into "sustainable communities," through the implementation of public policies that originate in Agenda 21, and other UN documents, Americanized through the President's Council of non-elected officials, and brought to local communities through a coordinated program of "collaborative consensus building" facilitated by trained experts.

The Congress of the United States -- elected by those who are governed -- has not enacted legislation that defines or authorizes a national policy of sustainable development. No state legislature has enacted legislation that defines or authorizes a policy of sustainable development. Nevertheless, the policies conceived by the international community are being implemented in local communities in Missouri and across America.

For example, in November, 1995, the Missouri Department of Conservation issued a 175-page draft of Coordinated Resource Management Plan (CRMP). The plan was not created in response to legislation reflecting the demands of the private owners of 93% of the land in Missouri, the people who are governed; it was created to "...sustain our natural environment," and because "other state and federal agencies have already begun efforts like CRM...."(5) Moreover, the plan endorsed the creation of a UN Biosphere Reserve in the lower Ozarks, a project sponsored by The Nature Conservancy, whose national president is a member of the PCSD, and several federal agencies headed by appointed officials who also are members of the PCSD.

As a result of local citizen response, the CRM was terminated on March 19, 1997 by Jerry Conley, Director of the Missouri Department of Conservation. In a March 27 press release, Conley ridiculed citizens' groups that had expressed concern about the United Nation's influence on the CRMP as "pure unadulterated bunk." He said concerns about shifting governmental authority over to non-elected groups was "absolute hogwash."(6)

An analysis of the CRM, however, revealed objectives, methodology, and language, very similar, and in some cases identical, to those found in Agenda 21, the Global Biodiversity Assessment, and Sustainable America: A New Consensus. Consider the evolution of the following idea:

Agenda 21: "Compile detailed land capability inventories to guide sustainable land resources allocation, management and use at the national and local levels"(Chapter 10.7(f) p. 86).

Global Biodiversity Assessment: "Include methods that limit the use of land resources through zoning schemes; use incentives and tax policy to foster particular land-use practices; create and enforce tenure arrangements...and establish easements...that seek to establish landscape characteristics favourable to biodiversity" (Section 13.1.3(5), p. 926).

Sustainable America: "Government agencies, conservation groups, and the private sector should expand the use of ecosystem approaches by using collaborative partnerships...for sustaining ecosystems and biodiversity. Develop indicators which can be used to monitor the status of ecosystems...for restoring damaged ecosystems." (Chapter 5.2(1-5) p. 119).

Missouri's CRMP (Coordinated Resource Management Plan): "Determine current status, prioritize, select and maintain/restore selected reaches or watershed units...(Objective 1.2(a)). Manage private lands in the watersheds of identified priority stream reaches to ensure protection of target biological communities through partnerships, watershed committees, incentives and other methods (Objective 1.2(c)). Support the establishment of an Ozark Man and the Biosphere Cooperative. Seek formal designation as a U.S. Man and the Biosphere Program, and work towards implementation of its goals/objectives (Objective IX.1(A&C).

This minute sample only suggests that the Missouri plan may have been influenced by ideas that first emerged in Agenda 21 and other UN documents and the PCSD. A more comprehensive reading of Agenda 21, Chapter 10 "Integrated Approach to Planning and Management of Land Resources," and the Global Biodiversity Assessment, Section 13 "Measures for conservation of biodiversity and sustainable use of its components," will reveal that the entire plan is based largely on the ideas first advanced in these documents.

Even though the CRMP was terminated, its very existence is evidence of the effort to reorganize society around the central principle of protecting the environment, rather than around the central principle of government empowered by those who are governed. Until the latter half of the 20th century, natural resources on, and under the land, were considered to be the property of the person who owned the land. Throughout the United Nations documents, as well as the policy documents of the agencies of the federal government, natural resources are considered to be a "public resource" whether on private or public land. The CRMP displays the influence of that changing attitude. The people who own 93% of the land in Missouri believe they still own the natural resources on their land and they did not ask the federal government or the state government to "plan" how they might use their property. Their resentment resulted in the plan's termination. But that only slowed the process; it did not end the federal government's determination to comply with the recommendations of the United Nations.

The Natural Resources Conservation Service (NRCS) of the U.S. Department of Agriculture (formerly the Soil Conservation Service) is seeking to implement a Memorandum of Agreement with Missouri Soil and Water Conservation Districts. Such an agreement would make "partners" of the local Districts in the federal agency's expanded program of comprehensive natural resource planning.

The influence of Agenda 21, and other United Nations treaties and policy documents is very clear in the implementation of land use policies in rural America. The United Nations policy on land use was adopted in 1976 by the UN Conference on Human Settlements (HABITAT I). The Preamble says, in significant part:

"Land...cannot be treated as an ordinary asset, controlled by individuals and subject to the pressures and inefficiencies of the market. Private land ownership is also a principal instrument of accumulation and concentration of wealth and therefore contributes to social injustice.... Public control of land use is therefore indispensable."(7)

Twice during the 1970s, minority interests in Congress attempted to pass the Federal Land Use Planning Act, which embraced the UN policy on land use. Twice, the effort failed. Nevertheless, the federal government, through the implementation of administrative rules and regulations, has continued to pursue a policy of "public control of land use."

The UN's policy of "public control of land use" is not limited to rural lands. Agenda 21 speaks profusely about controlling land use and human behavior in urban areas. The second UN Conference on Human Settlements (HABITAT II), held in Instabul in 1996, was devoted exclusively to "sustainable communities." The U.S. Department of Housing and Urban Development (HUD) was asked to prepare a report on the United States' progress toward achieveing the sustainable communities described in Agenda 21. The 26-page report was prepared by HUD's Andrew Euston, who says:

"One choice is to go as we go and do as we do -- without regard to the grave cumulative changes that have undermined the earth as humanity's cornucopia, our bread basket, our source of health, vitality and pleasure, and of hope for our future. This, we are told by science, is the unsustainable choice. The other choice is to create a deliberate transition to sustainability -- that is, to design it, for one definition of the word `design' is `to intend' for a definite purpose".(8)

"To go as we go and do as we do" describes the individual freedom that arises from a government that is empowered by the consent of those who are governed. Such actions are clearly "unsustainable," according to HUD, operated by non-elected individuals, unaccountable to those who are governed. Euston further describes the sustainable communities his "Agenda for Sustainability" intends to create:

"Sustainability is a fresh ethical paradigm for science, for society and for every responsible and concerned individual. It is a shift required of modern society as a whole. There will be the linking up of networks of communities of varied sizes within quite varied and multiple regional contexts, such as `Community Constellations' linked by compacts based upon common interests. Between the communities will be rural landscapes -- highly functional landscapes -- based upon entirely fresh understandings of landscape ecology.

"For this hopeful future, we may envision an entirely fresh set of infrastructures that use fully automated, very light elevated rail systems for daytime metro region travel and nighttime goods movement; we will see all settlements linked up by extensive bike, recreation and agro-forestry `E-ways' (environment-ways); for most communities transit, walking and bikes become people's preferred choices because they work and because people want it that way. We will be growing foods, dietary supplements and herbs that make over our unsustainable reliance upon foods and medicines that have adverse soil, environmental, or health side-effects (urban gardening, suburban edible landscaping, urban-rural truck farming and community-supported farming); less and less land will go for animal husbandry and more for grains, tubers and legumes. Gradually, decent standards of equity will be in place for women, for children and for the disadvantaged.

"At all levels of governance there must be commitment to the integration of society's social, economic, and ecological objectives. This local rebalancing can be done within the dictates of natural ecology, and this task has become civilization's central challenge -- an enterprise termed here `Sustainable Community Development.'"(9)

Euston's vision, which is the vision of the U.S. Department of Housing and Urban Development, did not arise from those who are governed, expressed through a publicly debated law enacted by duly elected representatives of those who are governed. His vision emerged from United Nations agencies, codified in Agenda 21, refined by the President's Council on Sustainable Development, and is now being implemented in Missouri, and across America, not by state legislatures and county commissioners, but by "Visioning Councils," and "Stakeholder Councils," consisting of non-elected individuals who are not accountable to those who are governed.

With great fanfare, St. Louis has launched its quest for "St. Louis 2004." Even the most cursory analysis readily reveals the influence of the top-down wisdom of the United Nations, the President's Council on Sustainable Development, and the U.S. Department of Housing and Development. One of the objectives of St. Louis 2004 is to "Inventory the region's plants, animals and ecosystems." The PCSD says "Convene planning sessions among all stakeholders to agree on ...methodologies for collecting data and conducting assessment of...biodiversity."(10) Agenda 21 says: "Undertake long-term research into the importance of biodiversity...with particular reference to new observations and inventory techniques."(11)

Another objective is to create "Sustainable neighborhoods - Support residents in the creation of self-sufficient neighborhoods." HUD's vision of a "Sustainable Community," is discussed above. The PCSD says:

"...provide incentives for regional collaboration on issues such as transportation...,and land use, that transcend political jurisdictions. Develop design tools [which] include model building codes; zoning ordinances; and permit approval processes for residential and commercial building, use of recycled and recyclable building materials, use of native plants that can reduce the need for fertilizers, pesticides, and water for landscaping...."(12)

Agenda 21 calls for:

"Adopting and applying urban management guidelines in the areas of land management, urban environmental management,infrastructure management.... Developing local strategies for...integrating decisions on land use and land management. To improve the social, economic, and environmental quality of human settlements, countries should adopt the monitoring guidelines adopted by the United Nations Centre for Human Settlements (HABITAT)...."(13)

Still another objective of St. Louis 2004, Air Qulaity, is an "apple-pie-and-motherhood" recommendation behind which lies all manner of planned regulatory initiatives to implement recommendations of the PCSD, Agenda 21, and the Kyoto Protocol to the Framework Convention on Climate Change. The PCSD's revised Charter instructs the Council to "not debate the science of global warming, but...instead focus on the implementation of national and local greenhouse gas reduction policies."(14) The instruction to "not debate the science" is consistent with the administration's position on global warming, despite growing skepticism in the scientific community about the human influence on global climate. More than 140 climatologists and astrophysicists have now signed the Leipzig Declaration, which says, in part:

"The polocies to implement the [climate change] treaty are, as of now, based solely on unproven scientific theories, imperfect computer models -- and unsupported assumptions that catastrophic global warming follows from the burning of fossil fuels and requires immediate action. We do not agree. Many climate specialists now agree that actual observations from weather satellites show no global warming whatsoever -- in direct contradiction to computer model results. Based on the evidence available to us, we cannot subscribe to the politically inspired world view that envisages climate catastrophes and calls for hasty action."(15)

In 1992, Agenda 21 called for governments to promote and develop "integrated energy, environment, and economic policy decisions for sustainable developent, and integrated rural and urban mass transit for sustainable social, economic and development priorities."(16) With the approval of the administration, the United Nations adopted the Kyoto Protocol to the Framework Convention on Climate Change which requires that the United States reduce its greenhouse gas emission to a level seven percent below 1990 levels by the year 2008-2012. The President has announced that he will sign the Protocol.

The PCSD, and the administration, have been preparing to comply with the requirement to reduce greenhouse gas emissions for several years -- without debating the science. Congressman John Boehner (R-OH) discovered an internal memo within the Environmental Protection Agency (EPA), prepared by Michael Shelby in EPA's Office of Policy, Planning and Evaluation. The memo set forth 39 measures that could be implemented to reduce greenhouse gas emissions -- without Congressional involvement. Some of the measures discussed in the memo include:

Tighten CAFE standards from the current 27.5 mpg to 33.5 in 2010; 40.9 in 2020; and 45.1 in 2025.
Levy a 50-cent per gallon tax on gasoline using the obscure Trade Expansion Act of 1962 which allows the Secretary of Commerce, not the Congress, to authorize a gas tax in certain circumstances.
Use BACT (Best Available Control Technology) as a condition for construction permits. "The EPA could begin raising objections to state determinations..." the report advises.
Full pricing for roads -- which would require states to match federal funds with monies derived from "user fees,"
EPA-mandated emission control technology required in State Implementation Plans.
Pay-at-the-pump insurance program (25-cents per gallon).
Emission-based registration fees.(17)
When the President signed the New Ambient Air Quality Standards (NAAQS) into law, more than 700 counties instantly fell into "non-attainment," which authorizes the EPA to implement whatever measures it chooses to force those counties into compliance -- without Congressional involvement.

The extent to which Agenda 21 and the PCSD have influenced public policy in America is truly astounding, especially since there has been no Congressional debate, definition of "sustainable development," or authority for its implementation. It may be surprising to Representatives Joan Bray and Russell Gunn that their HB994, which creates the "Environmental Equity and Justice Commission," would comply with the recommendations of both Agenda 21 and the PCSD. Agenda 21 says "Governments should carry out exposure and health assessments of populations residing near uncontrolled hazardous waste sites and initiate remedial measures."(18) The PCSD says, "Environmental Equity: Develop measures of any disproportionate environmental burdens (such as exposure to air, water, and toxic pollution) borne by different economic and social groups."(19) Other objectives of St. Louis 2004 that are prescribed by the United Nations and the PCSD include: Race and difference summit; Safe places for kids; Employer commitment to education; Downtown revitalization; Regional Park and Greenway system; New industries; Land trusts; and Minority and women-owned business expansion.

It is possible that the non-elected individuals who worked "collaboratively" to identify the objectives of St. Louis 2004, accidentally reached the same objectives set forth by the United Nations. Indeed, is is likely that few of the participants ever heard of Agenda 21, or Sustainable America: A New Consensus. It is certain, however, that the facilitators of the "collaborative censensus process," are quite familiar with both documents.

Similar "Visioning Councils" and "Stakeholder Councils" are at work across America. In Florida, the State Department of Community Affairs (DCA) is implementing a "Demonstration project" consisting of five "Sustainable Communities." A spokesman for the DCA denied that the program had anything at all to do with the United Nations. The program's objectives, however, are nearly identical to those of St. Louis 2004. In Santa Cruz, California, the plan is actually called "Local Agenda 21," and the objectives are a mirror-image of St. Louis 2004. Such is the case across America.

Elected officials should be concerned about both the substance of such "visions" or plans, as well as about the process by which such plans are devised. All such plans are justified by the desire to create a "sustainable future." Americans should demand that above all, any plans for the future must protect and preserve the bedrock principle on which America was founded: government is empowered by the consent of those who are governed. It is that principle, enshrined in the U.S. Constitution, that guarantees individual freedom, private property rights, free markets, and national sovereignty. Neither the bedrock principle, nor the fundamental freedoms it provides, are mentioned in Agenda 21, or Sustainable America: A New Consensus. Existing government processes are said to be "intractable,"(20) while the President's Council on Sustainable Development calls for "a new collaborative decision process...."

The "consensus-building" process is designed to by-pass the intractability of elected government officials and the process set forth in the U.S. Constitution. It is a "top-down" policy development process that was initiated with the adoption of Agenda 21, nationalized through the President's Council on Sustainable Development, and is now being implemented by an army of NGOs (non-government organizations), largely coordinated by federal government agencies and the international NGO leadership.

The World Resources Institute (WRI), the International Union for the Conservation of Nature (IUCN), the World Wide Fund for Nature (WWF), Maurice Strong's Earth Council (EC), and the International Council for Local Environmental Initiatives (ICLEI), represent the international NGO leadership. The WRI, IUCN, and WWF are largely responsible for the development of Agenda 21 and the United Nation's social and environmental policies. The EC and ICLEI are largely responsible for implementation. According to Jeb Brughmann, Secretary-General of ICLEI, the organization was actually created by the UN.(21) The WRI publishes a newsletter called NGO Networker, which reports the status of various NGOs' progress toward the implementation of UN policies.

At the local level, NGOs that initiate the consensus process rarely identify themselves with Agenda 21, or any of the international NGOs. The process is designed to appear to be a purely local initiative resulting from the demands of the local community -- ostensibly, the people who are governed. Rarely, however, does the community at large --the actual people who are governed -- even learn of the process until it is well underway. Typically, the individual or organization that initiates the consensus process in a local community is affiliated, and often funded, by one or more of the international or national NGOs. The first step is to identify other individuals and organizations in the community known to be sympathetic with the goals of Agenda 21. Those individuals are invited to participate in the organization of the effort. A "Visioning Council" will emerge, consisting of individuals selected because of their predisposition of support for the aims of the effort, and to reflect "representation" from across the community spectrum. The Council then holds a series of meetings to solicit input from the community.

Two important problems arise from this process: first, the participants who provide input are often carefully selected, especially in the formative stages; and second, the input solicited is in response to a predetermined agenda. Often, the participants are not aware that the agenda has been predetermined. The facilitator at these meetings is often a trained professional, hired for the purpose. The facilitator's purpose is to "build consensus." Consensus is not agreement; it is the absence of expressed disagreement.(22) As the process continues, the local media is recruited to report the wonderful work of "citizens" of the community to develop a "vision for the future." Occasionally, professional public relations consultants are used to develop a positive community context for the unveiling of the vision document. By the time the final document is presented, local elected officials have little choice but to support the program. Politicians, as well as individual citizens, who express concerns about the program are labeled as "anti-environmental," or worse. The consensus process is an ingeniously designed and skillfully implemented process to by-pass local elected governing bodies and the larger community of people who are governed.

The final step is implementation. No policy document developed by non-elected officials carries the weight of law. Therefore, it is necessary to find ways to get the policies written into enforceable law. Early in the process, federal, state, and local administrative officials are brought into the process at the local level. Federal agencies have long ago found ways to reinterpret existing legislative authority to allow for the implementation of Agenda 21 objectives. Ron Brown, then-Secretary of the Department of Commerce, told the 10th meeting of the PCSD that his Department had determined that they could implement 67 of the PCSD's 154 recommendations within the framework of existing legislative authorities. The Department of Interior is implementing the Ecosystem Management Policy, by reinterpreting existing legislative authority. The EPA is implementing Agenda 21 objectives, and the objectives of the Framework Convention on Climate Change, by revising existing Clean Air Standards through the rule promulgation process. Using the carrot-or- stick method, federal agencies are using incentives or penalties to encourage state and local agencies to do the same. Where existing authorities cannot be stretched enough to accommodate the objectives of Agenda 21, new incremental legislation is proposed, or administrative rule changes are initiated.

To ensure overall compliance with the community vision developed by the local Visioning Council, a favored technique is to develop a Memorandum of Agreement (MOA) between the Visioning Council, or a quasi-public entity created to succeed the Council, and the various governing bodies within the multi-jurisdictional area embraced by the plan. The MOA typically requires any development approval by any of the local governing agencies to be approved by the Council as a means to coordinate implementation of the plan throughout the plan area.

The local plan often takes several years to complete, but when complete, the transformation of society around the central organizing principle of protecting the environment is well established. The central organizing principle of government empowered by the people who are governed is effectively relegated to the ash heap of history.

Endnotes

 

1. "We Believe Statement number 8," Sustainable America: A New Consensus, President's Council on Sustainable Development, February, 1996, p. vi.

2. Al Gore, Earth in the Balance, (New York: Houghton Mifflin Company, 1992), pp. 269-274.

3. Agenda 21, Paragraph 2.4, p. 19.

4. The World Commission on Environment and Development, (The Brundtland Commission), Our Common Future, (Oxford: Oxford University Press, 1987), p. 43.

5. Missouri Department of Conservation, "The Big Picture: Questions and Answers About Coordinated Resource Management," p. 2.

6. Missouri Department of Conservation, Outdoor News via MissouriLink, Product ID: 352, March 27, 1997.

7. United Nations Conference on Human Settlements (HABITAT I), Agenda Item 10, "Preamble," Vancouver, British Columbia, May 31-June 11, 1976.

8. Andrew Euston, Community Sustainability: Agendas for Choice-making & Action, U.S. Department of Housing and Urban Development, September 22, 1995.

9. Ibid.

10. Sustainable America:, Op Cit., Chapter 10(7)(1), p. 136.

11. Agenda 21, Op. Cit., Chapter 15.5(f), p.132.

12. Sustainable America:, Op Cit., Chapter 4(1)(2); 4(3)(1), pp 91-95.

13. Agenda 21, Op. Cit., Chapter 7.4, 7.9(h), 7.16(a), pp. 52-54.

14. Revised Charter, President's Council on Sustainable Development, April 25, 1997, p. 7.

15. The Leipzig Declaration, adopted in Leipzig Germany, November 9-10, 1995, published in its entirety (with all signers as of December, 1997), in cologic, November/December, 1997, p.12.

16. Agenda 21, Op. Cit., Chapter 9.12(b); 9.15(a), p. 79.

17. Michael Shelby, EPA Office of Policy, Planning and Evaluation memo, "More Tons One-Pagers, May 31, 1994, (on file).

18. Agenda 21, Op. Cit., Chapter 20.21(c), p. 201.

19. Sustainable America: Op. Cit., Chapter 1, Goal 3, p. 16.

20. "Community Sustainability," HUD, Op., Cit., p. 5.

21. Joan Veon, "Earth Council: Rio+5," ecologic, March/April, 1997, p. 17.

22. Richard H. Graff, Techniques of Consensus, reported in ecologic, March/April, 1997, p. 13. Graff says: "A well-crafted question provokes thought and elicits no response."

Theory of induced travel debunked?

Details
News
Link to article here.

More Highways, Less Congestion

The theory of ‘induced-demand’ fails the road test.

Jonathan V. Last

Weekly Standard

March 7, 2011, Vol. 16, No. 24

In 2008 the Virginia Department of Transportation began work adding a fourth lane to the six-mile stretch of I-95 between the Springfield interchange and the exit for Virginia State Road 123. This is likely of very little consequence to you, but it was a life-changing moment for me: I live not far from State Road 123. And my daily commute along that stretch of I-95 had been slowly killing everything that was once good inside me.

As it stood then, that section of I-95 had only three lanes in either direction, carrying 212,000 vehicles per day. That’s an average of 1,472 cars per lane, per hour. During peak commute times, the flow was much, much greater. Under optimum conditions, a lane of freeway can handle 2,000 vehicles per hour. Any flow above that rate disrupts the network. The result, at least on my little stretch of Interstate, is that between 6:00 a.m. and 9:00 a.m., and then 3:00 p.m. and 7:00 p.m., traffic grinds to a halt, accelerates to 25 mph, and then crashes back to 0 mph. Over and over again. The civil-engineering term for this is congestion. The theological term is purgatory.

So I was in a state of spiritual bliss when the Commonwealth of Virginia decided to spend $123 million to add an extra lane in each direction. And after three years of construction, the new lanes are set to open soon. The only problem is that people who take traffic seriously—the pointy-heads who staff university engineering programs and government planning bureaucracies—keep telling me that the extra lanes aren’t going to help one bit. After a year or so, they say, I’ll be mired in congestion all over again.

Like many sects, traffic planners have their dogmata. One of their doctrines is that adding capacity to highways is futile because it merely creates more traffic. This phenomenon is called “induced demand,” or, more colloquially, “build it, and they will come.” The theory is simple: Traffic systems that suffer from -congestion have latent demand—that is, a universe of drivers who would use the freeway, but don’t, because of the traffic.

When you add extra capacity to the highway, there may be an initial decrease in congestion. But then the latent demand begins to flow into the system and it quickly fills the road back up to the previous traffic level. “Congestion” is not a problem, but rather an equilibrium point to which traffic systems inevitably tend. To use a science-ish metaphor, in this worldview traffic is not a liquid, which can be funneled; it is a gas, which expands to fill any constraint.

The idea of “induced demand” comes up a lot in modern transit discussions. Whenever a government entity wants to add highway capacity, the induced-demand crowd tut-tuts about it being wasteful, or even harmful. Induced demand doesn’t just fill up new highway lanes, they say; it pushes suburban growth further out—leading to even worse congestion as people move away from metropolitan cores. It leads to higher fuel costs and more accidents. Adding capacity to an existing highway can even make traffic worse on non-highway streets (so-called surface roads) because of an obscure game-theory principle known as Braess’s Paradox.

In short, they say, building highways is a terrible idea all around. Those extra lanes on I-95 won’t make my life better. They might even make it worse. So the idea of induced demand is exceedingly important. If true.

Induced-demand theories have been percolating for a long time. In 1947 Roy Jorgensen published a study contending that the creation of the Merritt and Wilbur Cross Parkways in Connecticut had generated an entirely new flow of traffic that wouldn’t have existed in their absence. In the decades that followed, dozens of reports were written on the subject, with the conclusion always being the same: If you build a road (or add lanes to an existing road), more cars will materialize to fill it.

At the most superficial level, this is not surprising. The entire point of building roads is so people will use them. Indeed, a sparsely used new road or highway would be held up as an instance of government waste, or pork. But over time, the research sharpened to suggest that greater highway capacity actually caused greater congestion. In 1985, for instance, the British transportation planner Martin Mogridge argued that extra highway lanes lure mass transit riders into automobiles, creating even more traffic.

Unfortunately, even though all of these engineers and planners just knew that building more roads created more traffic, they couldn’t quantify their findings and prove to the lay bureaucrats and politicians that highway expansion was folly. In 1995, that changed.

That year two engineers from the Institute of Transportation Studies at—where else?—the University of California, Berkeley, published a paper in which they finally hung a number on induced demand. Surveying data from 1973 to 1990, from a wide cross-section of California counties, Mark Hansen and Yuanlin Huang created a sophisticated mathematical model. They measured the supply of “lane-miles” for California state highways (SHLM) and then measured the vehicle-miles traveled (VMT) on them. Accounting for all sorts of variables, Hansen and Huang determined that in densely urban settings, building an additional lane-mile would immediately induce an extra 10,000 to 12,000 cars per day on that stretch of road. Over time, they reported, the “elasticity” of demand meant that traffic would accumulate on the new highway lanes until at least 90 percent of the new capacity was eaten up. In other words, they concluded, “our results suggest that the urban SHLM added since 1970 have, on the whole, yielded little in the way of level of service improvements.”

This was groundbreaking stuff. But the study was not without its problems. For one thing, while the data for the lane-miles were fairly reliable, the data on the driver-usage side of the equation were not. Hansen and Huang had 17 years worth of numbers for the highway lane-miles, but they had only 5 years worth of data on vehicle-miles traveled. What’s more, these numbers weren’t that solid. Nobody counted the cars on the freeways. Instead, they derived them by working backward from gasoline sales and estimating how many miles, and on what kind of roads, people probably drove.

Understanding the limitations of their own data, Hansen and Huang were appropriately cautious about their findings. “It should not be assumed,” they wrote, “that the aggregate elasticities [meaning, the induced traffic] obtained in our analysis apply equally to every urban region, let alone to any particular project.” They even allowed that they could “envision situations where adding lane-miles, by removing some traffic bottleneck, [would result] in both better traffic conditions and a higher VMT/SHLM ratio.”

But their cautions were lost in the rush of research and analysis that followed, as study after study attempted to out-quantify the induced traffic effect. A 2001 report by the University of London’s Centre for Transport Studies claimed that half of a new highway’s capacity is eaten up within five years of it being built. And that 80 percent of it will eventually be consumed by induced traffic—cars and drivers that otherwise wouldn’t be there.

Some of the induced-demanders found themselves spinning into outer space. In 2008 a trio of physicists began examining traffic using game theory. Their study claimed that in some cases, it might be possible to decrease congestion by taking away certain roads. Their paper, “The Price of Anarchy in Transportation Networks,” was a theoretical, not a political, exercise centered around linked systems and Nash equilibriums. The same probably can’t be said of a report from Great Britain, where a team of researchers helpfully suggested that if planners were to reduce highway capacity, it probably wouldn’t create any more congestion. Certainly, they allowed, traffic would be murder if you vaporized a lane of freeway on a major artery. But eventually, they said, people would take mass transit, change jobs, or just move away. Problem solved!

Read enough of these studies and you get a sense that much of the “induced demand” hubbub is really a sub rosa extension of the war on the suburbs: Stop highway expansion and you can make life miserable enough for the minivan-driving masses that they’ll move out of their gauche “urban-fringe developments” and back to high-density metropolitan cores, where they belong.

One of the most recent induced-demand reports, from Canada’s Victoria Transport Policy Institute, laments that building more highways increases “automobile dependency,” creates “degraded walking and cycling conditions,” and “reduced respect for alternative modes.”

What do these critics want? The Victoria Transport people warn that if we don’t take the idea of induced demand seriously, we’ll end up building more highway capacity, when what we should really be doing is enacting “no build” policies, spending money on transit improvements, and—this last bit is catnip for the econometric set—instituting “road pricing,” i.e., some form of toll road, to force drivers to put a dollar value on their commute. Their report includes a section helpfully guiding civic planners on how to phrase questions about highway expansion so as to elicit negative responses from citizens.

Because it turns out that if you ask the average person (1) Do you think traffic congestion is a problem; and (2) Should roads be improved to relieve it, they’ll say yes, and yes.

One of the reasons the unenlightened masses tend to be so pro-highway is that there’s some opposing research that suggests, heretically, that the induced-demand effect is modest. The most intriguing of these counterarguments came from a group of engineers and statisticians at the University of California, Davis, in 2002. The team reexamined the results of the original study by Hansen and Huang, using the same data, but a different mathematical model. They concluded, “the size of the induced-traffic effect that can be attributed to capacity enhancements may be sufficiently small that its detection .  .  . would be difficult, if not impossible.”

And in the real world, adding highway capacity can prove quite helpful. The Texas Transportation Institute’s annual Mobility Report, for instance, demonstrates an uncanny correlation between capacity and traffic congestion: Areas that add capacity tend to have lower levels of congestion. And induced demand doesn’t always -materialize. Take, for example, the city of Phoenix, a town built with almost no freeway system.

As a result, the Phoenix metro area historically had some of the worst congestion in the nation. Between 1982 and 2007, Phoenix decided to build the highways it should have had in the first place. They added so much asphalt that, according to the research firm Demographia, the city’s highway-lane-miles per capita grew by 205 percent. During that period, highway-vehicle-miles-traveled per capita increased by only 12 percent. And, like magic, traffic congestion plummeted.

Now what is true for Phoenix may not be true for Philadelphia. And building highways almost certainly induces some demand. The real issue, lost in all the statistical analysis and wonky planning, is, Why do we get in our cars in the first place?

That’s a question that drives Wendell Cox a little nuts. The principal at Demographia, Cox has spent a lot of time pushing back against the induced-demanders. He maintains that the entire framing of the issue is faulty: “Latent demand” for a highway, he notes, isn’t actually a desire to drive on that stretch of road. People only want the road as a means to an end. “Transportation is not a primary activity,” Cox explains. “There is no ‘love affair’ with the automobile. Driving is not something we would choose to do.” What we choose to do, for the most part, is go to our jobs.

A metropolitan area typically has about half as many jobs as people. But, because of geographical constraints, not every job is accessible to every person. Highways are, far and away, the most efficient way of delivering people to a job. When we add capacity to a highway, we’re actually expanding the universe of available jobs to everyone in the area. If that means that more people take advantage of the road space in order to find a job, get to work, or take a better job, that’s not a bug. It’s a feature.

In other words, a metric like “vehicle-miles traveled” is only superficially important. What we really care about is maximizing the number of potential jobs that people can reach, which increases affluence. Traffic, then, is a symptom of an economy with a mobile workforce, where workers can seek out better jobs with ease. Modern, multi-lane highways, even when they are sometimes congested, are the road away from serfdom.

Jonathan V. Last is a senior writer at The Weekly Standard.

Americans won't abandon their cars

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Link to article here.

The Way We Drive Now

There’s a reason Washington can’t get Americans out of their cars.

Fred Barnes

Weekly Standard

March 7, 2011, Vol. 16, No. 24
For most Americans—make that most of mankind—the car is an instrument of mobility, flexibility, and speed. Yet officials in Washington, transportation experts, state and local functionaries, planners, and transit officials are puzzled why their efforts to lure people from their cars continue to fail.

The Obama administration is only the latest to be bewildered. It has proposed every alternative it can think of to the car: high-speed rail, light rail, mass transit in general, bikeways, bus lanes, walking paths, the return of streetcars. Transportation Secretary Ray LaHood has embraced the “livability” movement, which is anti-car.

Those are just the positive attractions. There are punitive policies, too, both active and passive. Urban growth boundaries have put a virtual wall around cities like Portland, Oregon, to prevent sprawl and the cars that come with it. Limits in many locations on parking lots and on-street parking discourage the use of cars. Refusal to ease traffic congestion by building more roads and inertia in the face of rising gasoline prices make driving a car less appealing, even if those policies are not pursued with that purpose in mind. Restricted lanes for buses and bikes often infuriate urban drivers.

President Obama and LaHood have also tried persuasion and hype. In his State of the Union, Obama touted high-speed trains accessible to 80 percent of Americans, as if the country should be clamoring for them. LaHood envisions soothingly “livable” neighborhoods with “affordable housing next to walking paths and biking paths.”
None of this has worked. Nor did President Bush’s warning about a nation “addicted to oil” or the Clinton administration’s support of technology-driven ideas like “smart highways,” which became a code for building fewer roads or lanes.

The simple fact is most people prefer to travel by car because it’s convenient, which mass transit rarely is. They can go from place to place directly, choosing their own route and schedule. They can do so day and night. They can stop as frequently as they wish for any reason (do errands, drop off kids, etc.). This phenomenon has a name: freedom.

Subways made sense decades ago—in Boston, New York, Philadelphia, Chicago—when jobs were concentrated downtown. Now 90 percent of jobs are outside the downtown in the top 50 urban areas, where mass transit can’t compete with cars. Now the average commute by car takes half the time of mass transit. And the supposed cost benefits of mass transit, based on the old center city model, aren’t applicable to decentralized metropolitan areas.

Since 1982, when the Highway Trust Fund began to pay for non-highway projects, more than $200 billion in federal dollars has been spent on urban mass transit. Total spending at all levels of government has reached $1 trillion (in inflation-adjusted 2009 dollars). The result: Transit’s market share of urban passenger miles has fallen from 2.5 percent to 1.6 percent. In Los Angeles—where two subway lines, three light rail lines, and one busway have been built—the ridership on mass transit is lower than it was in 1985.

The story is similar in Washington, Baltimore, and San Francisco, each having built a modern, high-quality rail system in the 1970s and ’80s. Here again, the share of passengers on mass transit in those metropolitan areas has declined.

Washington is a special case. Roughly 19 percent of the jobs in the Washington urban area are downtown. Not surprisingly, the Metro rail system experiences high ridership and, according to transportation consultant Wendell Cox, “represents transit’s best chance for removing cars from the road.” Despite massive traffic congestion, few have been.

But Metro isn’t at fault. The transportation plan for the Washington area, drafted in the 1960s, called for one or two more beltways outside the one that was built. They would have diverted traffic on I-95, the major artery along the East Coast, from merging with Washington traffic. Opponents insisted the beltways would lead to development in pristine rural areas. Neither of the outer beltways was ever built. The development occurred anyway.

More broadly, there’s no evidence anywhere in the United States—or the world, for that matter—that investment in mass transit in recent decades has reduced congestion. At the same time, the price of mass transit goes up. The price tag on the proposed high-speed rail line between San Francisco and Los Angeles has risen from $43 billion to $65 billion over the past two years. No wonder three governors—Scott Walker of Wisconsin, John Kasich of Ohio, Rick Scott of Florida—have cancelled high-speed train projects.

So who’s to blame for the overwhelming preference for automobiles over mass transit? Do Americans have an irrational love affair with cars? No. A car not only saves time, it’s safe, increasingly fuel efficient, and less polluting than ever. True, emission standards are a government intrusion loathed by conservatives. But they work.

Cars and drivers, sad to say, don’t function in a free market world. Both are highly regulated, sometimes for good, sometimes not. If the law of supply and demand were operative, we’d see a smarter approach to improving transportation in America. The supply of cars would create a demand for more roads and bridges to accommodate them, just as food lines outside a grocery store create demand for more grocery stores. Instead we get more mass transit, demand for which is imperceptible, and fresh rounds of confusion among officials whose plans are destined to come to naught.

Fred Barnes is executive editor of The Weekly Standard.

TURF Founder blasts Perry on MSNBC

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Watch as TURF Founder, Terri Hall, blasts Texas Governor Rick Perry for his anti-taxpayer transportation policies, among other misdeeds that should disqualify him for higher office. Writer Christopher Hayes fills-in on the Lawrence O'Donnell Show and cuts it up with Terri. Hayes has interviewed Terri on several occasions and now on national TV. Voters beware of Perry!

Durbin introduces bill to block road privatization

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Public Private Partnerships
Link to article here.

US Senate Leader Introduces Bill to Block Road Privatization
Bill would force states to pay back federal contribution before leasing highways to private companies.
The Newspaper.com

Senator Dick DurbinA member of the US Senate leadership is looking to stop states and cities from selling America's freeways and airports to private companies. Senator Dick Durbin (D-Illinois), the assistant majority leader, introduced the Protecting Taxpayers in Transportation Asset Transfers Act on June 17 to rein in governments officials who would sell off roads to meet short-term budget needs, leaving motorists to pay far more in the long run in tolls and other fees.

"The federal government provides states and local governments billions of dollars to build, maintain and improve transportation projects around the country," Durbin said in a statement. "The last transportation bill alone provided states with an average of $48 billion per year for upgrades to roads, bridges and mass transit systems. Any deal to sell or lease these assets should be closely examined and include a return on the federal taxpayer investment." Durbin was particularly upset by Chicago's deal to lease its parking meters to Morgan Stanley for $1.2 billion. Nearly all of this money was spent by former Mayor Richard M. Daley, leaving drivers to pay massive increases in the cost of parking that will add up to an estimated $11.6 billion over 75 years.

"This legislation protects against fire sales of our existing public assets while making certain the public's interest is fully protected in future public/private partnership agreements," the House sponsor of the legislation, Representative Peter DeFazio (D-Oregon), said in a statement.

The legislation directs the US Department of Transportation to place a lien on public transportation assets so they cannot be sold or transferred without the value of the federal expenditure on construction, maintenance and upgrades being returned to the US Treasury. Transportation assets include freeways, mass transit, airports and railroads worth more than $500 million or where the federal contribution exceeds $25 million.

The legislation also imposes conditions on any lease deal to increase transparency. Companies must disclose conflicts of interest, the estimated tax benefits and financing transactions over the life of the lease, the amount of increased tolls over the life of the deal, changes made to the workforce, and revenue estimates over the life of the deal. State governments must justify the deal in terms of the public interest and disclose the likely impact on nearby roads. In the event the private company goes bankrupt, ownership of the asset must return to the state. The contract with the private company must also be posted online 90 days before the deal can be approved.

Source: S. 1230 (US Senate, 6/16/2011)

Trans Texas Corridor officially repealed, but is it dead?

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Trans Texas Corridor finally dead? Well, mostly dead

By Terri Hall

Founder, Texans Uniting for Reform and Freedom


The people of Texas scored a big victory with the recent repeal of the Trans Texas Corridor (TTC) from state statute. Governor Rick Perry even signed it. That ought to give us pause. The TTC is Perry’s legacy building project, one he still defends despite the massive grassroots uprising against it. So why would he sign it?

Because it’s not truly dead. Like the famous line in the film Princess Bride, it’s mostly dead. During the 82nd Texas Legislative Session that ended May 30, the final repeal of the Trans Texas Corridor made it to the Governor’s desk, but with the passage of several key bills, it essentially revives a Trans Texas Corridor-style sale of Texas infrastructure through controversial public private partnerships (PPPs). Several segments of TTC-69 (most are connections to the Port of Houston) are authorized in SB 1420 and will move forward piece by piece as PPPs.

Texas politicians have been frustrated since the Trans Texas Corridor first became one of the most radioactive political hot potatoes across the state (and nation) as to how to convince constituents that the TTC is DEAD. Once Texans were educated about it and became sophisticated in their knowledge of how to identify it and kill it, they were just too smart to believe the TTC was really dead simply because a politician told them so. The flame started to burn in 2005 when Governor Rick Perry awarded the development rights for the Trans Texas Corridor TTC-35 to a Spanish company, Cintra, and would not release the contract to the public. Then the anti-TTC sentiment spread like wildfire after two rounds of public hearings, 54 hearings in a matter of weeks in 2006 for TTC-35 and then another 46 hearings again in 2008 for what was once I-69 that morphed into a Trans Texas Corridor concept of a foreign-owned toll road through mostly rural East Texas, known as TTC-69.

More than 28,000 Texans went on the record opposing that project, even more than the TTC-35 project, and those East Texas lawmakers, including Transportation Commissioner turned Texas Senator Robert Nichols (who was present when the TTC-35 development rights contract was first signed) and Senate Finance Committee Chair Sen. Steve Ogden, who carried the original bill to create the TTC,  took notice and abject panic set in. That was the most public comment against any road project in the history of Texas. Now the backlash wasn’t isolated to just Central Texas (TTC-35), it was in the hotbed of Republican fundraising country, where property rights are sacred (TTC-69).

The Trans Texas Corridor as originally envisioned was a 4,000 mile multi-modal network of toll roads (auto and truck lanes), rail lines (freight rail and commuter rail), power transmission lines, pipelines, telecommunications lines, you name it, it was part of the Trans Texas Corridor, a terrorist’s dream. It was going to be financed, operated, and controlled by a foreign company using public private partnerships in swaths of land 1,200 feet (4 football fields) wide.

Called the biggest land grab in Texas history, it was going to gobble up 580,000 acres of private Texas land (the first corridor alone was to displace 1 million Texans) and hand it over to Cintra or some other global player who would have exclusive rights to determine the route and what hotels, restaurants, and gas stations were along the corridor (a cash cow, and government-sanctioned monopoly for HALF CENTURY). The federal government calls the TTC more nebulous sounding names like “High Priority Corridors,” “Corridors of the Future,” and even the NAFTA superhighway. TTC-69 is referred to in congressional documents as High Priority Corridors 18 & 20 and is supposed to the start at the southern border of Texas and go all the way to Port Huron, Michigan.

The Trans Texas Corridor, re-named the “Innovative Connectivity Plan” in 2009, has always been about exploiting landowners and taxpayers to open up new trade corridors to facilitate the free flow of goods (mostly cheap goods from China) among nations to benefit global corporations. With WikiLeak documents confirming our government is indeed pushing for the integration of the United States with Canada and Mexico into a North American Union, these economic and trade connections are vital to their plan, and won’t die simply because the TTC statute is now gone.

Stop the freight train, er...pipeline!
Within days of Perry winning the Texas primary March 2, 2010, TxDOT revealed its intention to extend the SH 130 toll road northward. SH 130 from Georgetown around Austin extending south to San Antonio is the first leg of the Trans Texas Corridor TTC-35. So as predicted, Perry, bolstered by his re-election, continued his plans to push the TTC piece by piece all the way up to the Red River.

With Winnipeg moving a multi-modal trade corridor southward along I-35, and the expansion of US 281 south of San Antonio underway (which feeds into the I-35 corridor) moving the corridor northward, it proves the TTC's demise was mere illusion designed to put Texans back to sleep while politicians get re-elected and quietly build it, segment by segment under the radar.

When the Texas Department of Transportation announced that TTC-35 was "dead," it also clearly stated TTC-69, also given the name I-69 to make it appear more harmless, is still moving forward. In fact, expansion of US 77 is already underway in the valley as part of the initial leg of what will be known as TTC-69/I-69.

In addition, Ports to Plains (to run from Mexico all the way to Alberta, Canada) and La Entrada de Pacifico, two other active TTC corridors, show that nothing has changed there either, except dropping the official connection by name to the Trans Texas Corridor. La Entrada, to traverse through the Big Bend area, has a disturbing new twist with the resurrection of the idea to cede Big Bend to international interests by deeming it an "international" park, essentially to join it with Mexico's "Big Bend" on the other side of the U.S. border.

The idea is to eventually develop future sea-port connections with Far-East ocean shipping lanes, and to steer federal transportation dollars into several otherwise useful local projects over time, and then connect the segments into a singular, identifiable system.

Part of the TTC concept for Ports to Plains includes the transport of wind power around the state (per a TxDOT feasibility study in 2007) and a tarsands oil pipeline. So it’s not a leap to suspect the Keystone XL tarsands oil pipeline (owned by a Canadian company called TransCanada) heading down from Alberta, Canada to Houston via East Texas right now may well tie into the TTC, or at least the larger picture of trade with China. Either way, several trans-national pipelines are still in the works through Texas that have been fraught with threats of eminent domain and downright bullying - all for oil that won’t likely benefit the U.S.

“TransCanada’s own funded report shows that the Keystone XL pipeline will cause an increase in the price of gas, is not currently needed, and that it will not decrease imports from ‘unfriendly sources.’ The State Department acknowledges the fact that there is no guarantee that any of this product would stay in the U.S. This pipeline would open up the world market for landlocked tarsands and provide China’s tarsands investors with a port, while putting our lives and water supplies at risk,” notes East Texas resident David Daniel, Founder of Stop the Tarsands Oil Pipeline.

‘Come and Take it’
Anyone familiar with Texas history knows about the story behind the Gonzales flag emblazoned with a cannon and the words ‘Come and Take It.’ It was the challenge the Texians gave the commander of the Mexican army in 1835 when he sent for the cannon stationed there (in a move to disarm the Texians). They simply replied, ‘Come and take it.’ When the Mexican army came to retrieve the cannon, the Texians put up a fight and the army retreated. It was considered the beginning of the Texas revolution. The rest is history.

As part of their proud history, Texans can add another ‘Come and Take It’ moment to their epic: the rise of the Trans Texas Corridor and its subsequent defeat. Texans educated the nation on this coming land-grabbing superhighway tidal wave and generated a Texas-sized revolt against the Trans Texas Corridor, striking fear in the eyes of any politician associated with it.

Yet while Texans have a lot to celebrate for driving a stake through the heart of the Trans Texas Corridor as it was originally envisioned -- it will no longer include the vast pie-in-the-sky “multi-modal” network of rail, telecommunications, power transmission, and pipelines of all sorts in a 1,200 foot wide foreign-controlled right of way -- a toned-down version of that plan still creeps its way into existence. So all Americans must stay vigilant to kill this beast wherever it lurks. Texans stand ready.

Subcategories

Eminent Domain

Trans Texas Corridor

Public Private Partnerships

Regional Mobility Authority

Metropolitan Planning Organization

Climate Policy

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