Perry backs more debt, toll taxes to pay for roads

Link to article here. Governor Rick Perry's Press release & the text of his speech is also below.

Actually this article makes it sound as though we'd be getting a portion of our existing vehicle sales tax dedicated to build free roads, but actually the Governor's plan is to use that TAX money to leverage more toll road debt. So they'll build the road with some of our tax money, but still charge us tolls to drive on it.

So if the Governor gets his way, he'll take the most promising pot of money we have to build free roads and get back to pay as you go and hijack it to build more toll roads and issue heaps more DEBT! Perry now advocates century bonds that will take 100 years to pay-off - well beyond the useful life of the road. He thinks we can 'manage' all this debt. But it's unsustainable. Under Perry, the state has amassed $31 billion in principle & interest in just the last 8 years maxing out the borrowing against future gas taxes and even dipping into general revenue to back bonds. Imagine what Perry would do with a new revenue stream!

Perry Backs Dedicated Car Sales Taxes for Highway Fund
By Aman Batheja
Texas Tribune
April 12, 2013

Gov. Rick Perry on Friday came out in support of dedicating a portion of future sales tax revenue from car sales to the state’s highway fund, while also leaving the door open to spending more of the Rainy Day Fund on infrastructure projects that he had proposed three months ago.

“With the rapid growth of our population and our healthy economy, the amount we take on in those sales is increasing steadily,” Perry said during a keynote speech in Austin at a transportation infrastructure conference hosted by the Texas Lyceum. “I propose that we dedicate the future growth of sales tax collected on motor vehicles to transportation infrastructure.”

Obama pushes more tolls, public private partnerships

Link to article here.

President's budget strong on transportation, with a catch
By David Tanner, Land Line associate editor
April 11, 2013

President Obama’s proposed budget shows the administration’s commitment to funding transportation and infrastructure. But while the numbers look good for roads and bridges over the short term, critics say the document lacks a long-term funding solution and gets off track in areas such as sharing highway money with rail and expanding the cross-border trucking program. 


Traditionally, a presidential budget request is a wish list, and the one President Obama delivered on Wednesday, April 10, is no exception.

The wish list calls for an immediate $50 billion in upfront spending for structurally deficient bridges and other needs.

CA toll roads $1.7 billion in red ink

Link to article here.

Texas is following the same model, though Governor Rick Perry is fond of comparing Texas as better than California in every way, his transportation policies are incurring massive taxpayer debt and they're building toll roads that will be in a sea of red ink for a generation or more!

California: Toll Roads Generate $1.7 Billion In Red Ink
Analysis shows two Southern California toll roads were unsustainable from the very beginning.
The Newspaper.com
April 12, 2013

The debt load accumulated by the toll roads in Orange County, California is unsustainable, according to a study released Tuesday by the Pacific Research Institute. Researchers Donna Arduin, former budget director for California Governor Arnold Schwarzenegger (R) and Wayne Winegarden, a senior fellow at PRI, examined the financial status of the publicly owned Foothill-Eastern Transportation Corridor Agency's 241 toll road and the San Joaquin Hills Transportation Corridor Agency's 73 toll road.

Advocates insist tolling is a superior transportation funding mechanism because it is based on the concept of "user fees" -- those who use the toll road are the ones who pay for it. This concept has gone out the window with the Transportation Corridor Agency (TCA) toll roads, which the report found use an estimated $1.7 billion in taxpayer subsidies. Worse, the roads are deeply in debt.

PA turnpike corruption worst case ever

Link to article here.

Experts: State’s turnpike corruption ‘the worst such case’
By Brad Bumsted
Pittsburgh Tribune-Review
Thursday, April 11, 2013

HARRISBURG — The Pennsylvania Turnpike scandal is the worst of its kind in the nation in recent history, experts say.

“There's been nothing as systemic, as enduring and widespread,” Peter Samuel, publisher of Tollroadsnews.com in Frederick, Md., said of allegations in a state grand jury report last month.

Attorney General Kathleen Kane has said the investigation continues; the grand jury had concluded that eight people, including a former Senate Democratic leader and former top turnpike officials, used the agency as a “cash cow” to raise campaign money for lawmakers and gubernatorial candidates. Campaign donations and gifts paved the way for rigged turnpike contracts in a pay-to-play scheme, the grand jury said.

Trans Texas Corridor? Oklahoma-Texas rail corridor

Link to press release here.

The Trans Texas Corridor is no more dead than I am. This press release from TxDOT proves it. Throw Loop 9 into the mix and the original vision is right in front of our eyes.

TxDOT Press Release

Texas-Oklahoma Passenger Rail Study

Texas’ population and economy are booming, with much of its growth occurring in the already-congested I-35 corridor. While TxDOT continues to explore roadway improvements to keep all of us and our economy moving, other options, such as passenger rail service, fit the needs of many travelers and would reduce demand on the state’s roadways. Through the Texas-Oklahoma Passenger Rail Study, TxDOT will consider how passenger rail service could fit into this corridor.

Millionaire travel uninterrupted: TxDOT takeover of municipal airports

Link to article here.

Millionaire travel uninterrupted: Texas taxpayers to takeover municipal airports
By Terri Hall
Examiner.com
April 1, 2013

It sounds like something you’d hear on April Fool’s Day, but in Texas, Governor Rick Perry and his highway department are quite serious. The Texas Department of Transportation (TxDOT) just announced it plans to takeover operations of 13 municipal airports across the state that have lost federal funding due to cuts triggered by sequestration.

Perry asked TxDOT to temporarily pay for air traffic controllers, presumably, for public safety, but it’s no coincidence that the governor and his Transportation Commissioners jet set into and out of these small airports for state business, though commercial air travel is much more cost effective for taxpayers. It appears this airport stopgap will directly benefit the governor and his highway commissioners. Perry also uses these airports for campaign travel, especially when he ran for president in 2012.

Greece selling off infrastructure to get out of financial trouble

Link to article here.

Greece On The Auction Block: Country Seeks Bidders For Sale Of Its Railroad Infrastructure By Early 2014
By Angelo Young | April 01 2013
International Business Times

The Greek government has been trying in recent years to sell everything short of its historic Parthenon in an attempt to climb itself out of a massive debt hole.

Now, facing mounting pressure from international lenders to speed up its national yard sale, the government has announced it would begin the tender to sell the Hellenic Railways Organization, known by its Greek acronym OSE, by the end of the second quarter.

SCANDAL: Pennsylvania toll officials charged with bribery

Link to article here.

Pennsylvania: Eight Charged In Toll Road Scandal
Officials, politicians and contractors charged in bribery scandal at Pennsylvania toll road.
The Newspaper.com
March 20, 2013

Top officials at a toll road in Pennsylvania have been charged with shaking down motorists and pocketing the cash. Attorney General Kathleen G. Kane last week filed charges against a former state senator, two contractors and five Pennsylvania Turnpike employees, including the CEO, chief financial officer and a commissioner.

"The former state officials charged wielded extraordinary power which they wrongfully used for self-enrichment and for their own political purposes, rather than for the good of the commonwealth and its citizens," Kane said in announcing the charges. "Their criminal acts resulted in the misdirection, misuse, and theft of millions of dollars of public monies."

Ordinary Americans hurt by P3s

Link to article here.

Obama Plans to Sacrifice Ordinary Americans Yet Again in “Public/Private Partnership” Infrastructure Scam
Naked Capitalism
March 31, 2013

Apparently Obama’s idea of a Holy Week sacrifice is to feed American citizens to rapacious bankers, this time through the device of “public/private partnerships” to support infrastructure spending. Some NC readers were correctly alarmed by a speech by Obama on Friday on using public/private partnerships to fund infrastructure spending. This is not a new idea; Obama first unveiled it in his Statue of the Union address. But it is a singularly bad idea, that is, if you are anyone other than a promoter of or investor in these deals.

Toll roads are double taxation

Link to article here.

Toll Roads and Double Taxation: The Left and Libertarians Converge

By Rachel Alexander
Town Hall.com

4/1/2013

Toll roads are appealing to many on the right, because the fees don't look like taxes; motorists are charged for the voluntary action of driving on a specific road. Toll roads appear to be run by private entities, not the government. Also known as turnpikes, they are becoming an increasingly popular way to raise money to build roads, instead of increasing gas taxes which have traditionally paid for highways. Gas tax revenues only have about one-third the buying power they did a decade ago, insufficient to build new roads or maintain existing ones. There are now 5,244 miles of toll roads in the U.S., operating in 35 states.

Cintra’s credit woes, speed limit hike adjacent to toll road spell trouble

Link to article here.

Cintra’s credit woes, speed limit hike adjacent to toll road spell trouble
By Terri Hall
Examiner.com
March 29, 2013

It’s been a rough road for Cintra, Spain-based global toll operator, ever since it opened its first privately-operated tollway, State Highway 130, in Texas last fall. Yesterday, the Texas Transportation Commission voted to increase the speed limits on US Highway 183 to 60 MPH through Mustang Ridge and up to 65 MPH on the southern leg that runs through Lockhart, on the freeway that now serves as the frontage road to Cintra’s high-speed tollway. When SH 130 opened, the Commission increased the speed limit to the fastest in the country - 85 MPH - while also lowering the speed limit on the adjacent freeway, US 183 from 65 MPH down to 55 MPH.

The public fury was swift and Caldwell County Commissioners passed a resolution requesting that the Commission return the speed limit on US 183 to 65 MPH. TxDOT claimed it was ‘studying’ the speed limit situation, meanwhile SH 130 experienced its first fatality due to the dramatic difference in speed when a car on the tollway collided with a car getting onto the tollway from the dramatically lower speed frontage road that’s now US 183. The speed differential was believed to be the cause of the fatal accident.

Broken promises? Texas lawmakers fail to end gas tax diversions

Link to article here.

Broken promises? Texas lawmakers fail to end gas tax diversions
By Terri Hall
March 28, 2013
Examiner.com

Texas Governor Rick Perry, Lt. Governor David Dewhurst, Texas House Speaker Joe Straus, and House and Senate budget writers have so far failed to end diversions from the gas tax and help fix the structural road funding shortfall in the budgets passed last week. Perry, Dewhurst, and Straus all promised to end diversions of the gas tax in an effort to enact truth in budgeting -- to ensure taxes collected for a specific purpose actually go to fund that purpose.

The Texas Constitution restricts the use of state gas tax revenues to "...the sole purpose of acquiring rights-of-way, constructing, maintaining, and policing such public roadways..." Yet lawmakers continue to raid the gas tax to fill holes in the budget for non-road purposes like funding public pensions and benefits for state agencies other than the Texas Department of Transportation (TxDOT).

TxDOT lowers truck tolls, increases speeds on free route

Link to article here.

Transportation commission lowers truck tolls on Texas 130, raises speed limits on its frontage roads
By Ben Wear
American-Statesman Staff
March 28, 2013

The Texas Transportation Commission unanimously decided Thursday to lower truck tolls on Texas 130 for the next year and to increase the speed limit on the tollway’s frontage roads near Mustang Ridge and Lockhart.

Starting Monday, all vehicles will pay the same toll rates on Texas 130 for its full 90-mile run from north of Georgetown to Seguin, about $17 for the entire trip (or 25 percent less for those with an electronic toll tag). Likewise, all vehicles will pay the same rates on Texas 45 Southeast. Larger trucks with more than two axles currently pay two to four times what cars and small trucks pay, and they will do so again starting in April 2014 unless the Texas Department of Transportation decides to continue the discounts.

Default coming? Cintra's SH 130 may receive credit downgrade

Link to article here.

Light 130 traffic prompts credit review of toll debt
By Ben Wear
American-Statesman Staff
March 26, 2013

The privately operated section of the Texas 130 tollway south of Mustang Ridge is attracting about half the predicted traffic, according to Moody’s Investor Service, prompting it to investigate downgrading credit ratings for more than $1.1 billion in debt attached to the toll road.

Meanwhile, toll rates for trucks on the entire length of the tollway, from Seguin to north of Georgetown, will likely be lowered for one year to encourage more traffic. That move is expected to put a dent in revenue, however.

Rail plan of Trans Texas Corridor lives on

Link to article here.

This rail plan is part and parcel of the Trans Texas Corridor (TTC). It's also no coincidence that this uptick in interest in rail occurs when several bills have been filed in the Texas legislature to give TxDOT the authority to enter into controversial public private partnerships (the financing mechanism of the TTC) to build the rail components of the TTC without the radioactive name.

TxDOT to hold meetings about potential rail corridor to Oklahoma
by BAILEY MCGOWAN
WFAA.com
Posted on March 26, 2013

The Texas Department of Transportation will hold three meetings in the North Texas area over the next two weeks looking for input on the possibility of a Texas-Oklahoma passenger rail.
 
The possible 850-mile stretch of rail would go from Oklahoma City to South Texas in order to alleviate some of the heavily condensed traffic along roads like Interstate 35, according to Mark Cross, an information specialist for TxDOT.

Senator warns of 'fiscal cliff' on transportation funding in Texas

Senate approves budget, warned of transportation 'fiscal cliff'
By Peggy Fikac Austin Bureau
San Antonio Express-News
Wednesday, March 20, 2013

AUSTIN — Texas senators highlighted efforts to restore education funding and keep up with health services for the poor as they approved a $195.5 billion state budget Wednesday.

But Senate leaders warned there is much work yet to be done to meet the state's needs.

Texas faces a “fiscal cliff” on transportation that remains unchanged by the budget, said Finance Committee Chairman Tommy Williams, R-The Woodlands. Some advocates, meanwhile, pushed to put more money into public schools and other programs as Senate Bill 1 advances.

Buy out of SH 130 tollway could make it a freeway

Link to article here.

$3 billion plan would end tolls on Texas 130
By Ben Wear
Austin American Statesman
March 20, 2013

How could the state lure people away from Interstate 35 and onto the Texas 130 tollway several miles to the east? State Rep. Paul Workman has a $3 billion answer to that question: make it free.

The solution proposed in House Bill 3682 by the Austin Republican, whose district doesn’t include Texas 130, likely faces more political hurdles than there are miles in Texas 130 — 90. Some lawmakers Wednesday referred to it as a “statement” bill, in effect no-hope legislation filed mostly to make a point.

TxDOT's cost savings rolled out

We've been some of the loudest critics of the Texas Department of Transportation (TxDOT), so when we find that the agency is doing something right, we want to let the public know.

TxDOT recently posted a sampling of the cost savings they've achieved under the leadership of its new Executive Director, Phil Wilson.

See the achievements here.

Among the listed cost-saving achievements it shows TxDOT has reduced the size of its fleet (estimated savings $50 million/yr), switched from conventional to synthetic oil (estimated savings $1.4 million/yr), renegotiated energy contracts (estimated savings $4.5 million/yr), and refinancing its debt on the Central Texas Turnpike System (savings of $200 million over the life of the bonds).

The web post says:
These cost savings reflect the work of resolute, knowledgeable and collaborative professionals determined to solve our state’s toughest transportation challenges and be good stewards of taxpayer money.

Texans say 'No' to more tolls, road debt

Link to article here.

Here's a few of the articles resulting from our press conference at TURF Lobby Day at the Texas Capitol.

Texans to lawmakers: no more tolls
By James Jeffrey
Austin Business Journal
March 13, 2013

Texans from across the state gathered at the Capitol Tuesday to urge Senate and House budget writers to accept long-term road funding solutions and avoid raising tolls.

State Sen. Robert Nichols, R-Jacksonville, and State Rep. Larry Phillips, R-Sherman, have filed Senate Bill 287 and House Bill 782, respectively, that would allocate revenue from motor vehicle sales tax to the state highway fund.

Representatives from Texans Uniting for Reform and Freedom are concerned those bills have been sent to budget committees to die. They oppose an alternative solution, SB 1632 by State Sen. Juan Hinojosa, D-McAllen, that would fund transportation projects and authorize fees, which they argue would result in more tolls for Texas road users.

Washington voters eliminate new toll roads, unelected boards raising toll rates

Link to article here.

This is sorely needed in Texas where not only are ALL unelected boards setting and raising toll rates at will without voter consent, the unelected Transportation Commission is also imposing tolls on previously free lanes in a DOUBLE TAX rip-off of Texas-sized proportions! Texas does nto have statewide initiative referendum, which is why this horrible transportaiton policy has not been remedied. So much for the fantasy image that Texas is freedom-loving and a low tax state. Tolls represent the largest tax increase in Texas history.

Washington: Voter Initiative Kills New Toll Roads
State official rules Transportation Commission can no longer set tolls in Washington state.
3/13/2013
The Newspaper.com

Converting freeways into toll roads is one of the most popular types of project among transportation bureaucrats and certain politicians. When asked their opinion on the wisdom of tolling, voters have expressed a far different sentiment. In Washington state, for example, there is now no question that Initiative 1185, which took effect last December, will block a number of tolling projects that have been in the works.

"There will be no unilateral increase in tolls by the Transportation Commission because the voters said no to agency-imposed increases in November," initiative sponsor Tim Eyman said in a statement. "That means no tolls for 405 HOT lanes, no tolls for the Alaska Way Viaduct, no tolls for the Columbia River Crossing, and no toll increases on the Tacoma Narrows Bridge."

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