THE PROGRESSIVE CONSERVATIVE, USA

An Online Journal of Political Commentary & Analysis
Volume IX, Issue # 103, June 4, 2007
Dr. Almon Leroy Way, Jr., Editor
Government Committed to & Acting in Accord with Conservative Principles
Ensures a Nation's Strength, Progress, & Prosperity
Home Page   Main Menu   Recent Articles   Site Map   Website Index   Issues & Controversies
  Cyberland University   Political Science, Philosophy, & History: Lectures   U.S. Constitution
  American Constitutional Law   American Constitutional System   American Political System
  Conservatism, Liberalism, & Radicalism   How America Goes to War
  World War IV: Islamist Terror War Against the U.S.A. & the West

WHO'S TO BLAME FOR THE SELLOUT?
By Henry Lamb

FISCAL POLICY & AMERICA'S TRANSPORTATION NEEDS:  PUBLIC-PRIVATE PARTNERSHIPS AS A MEANS OF FINANCING TRANSPORTATION INFRASTRUCTURE PROJECTS IN THE U.S.A. -- WHY PPPS ARE POPULAR WITH STATE GOVERNORS & TRANSPORTATION OFFICIALS -- PPPS & THE PUBLIC INTEREST -- HOW PPPS AFFECT THE TAXPAYING CITIZENRY -- THE ALTERNATIVE TO PPPS
FULL STORY:   The nation’s transportation experts have identified the top three priorities: a national freight network; urban congestion; and connecting new urban centers with the interstate system. The American Association of State Highway and Transportation Officials, meeting in national conference last month, heard futurists predict that the cost of meeting the transportation needs would be $3.1 trillion over the next 25 years. State and local governments are turning to “public-private partnerships” (PPPs) to produce the funding.

The City of Chicago was happy to partner with a Spanish-Australian group that paid $1.83 billion for a 99-year lease to operate the Chicago Skyway. The same outfit paid Indiana $3.85 billion to operate the Indiana Tollway for 75 years. The same Spanish company has partnered with a Texas firm to give the State of Texas $7.2 billion to build and operate the first leg of the Trans-Texas Corridor. And Pennsylvania’s Governor Edward G. Rendell is expecting a bid of between $15- $18 billion for the Pennsylvania Turnpike.

Most states have already enacted, or are considering, legislation to authorize this PPP financing of public infrastructure.

Public opposition to PPP financing encouraged the Texas Legislature to adopt a two-year moratorium on the state’s PPP projects. The Governor’s veto, however, along with threats from the U.S. Department of Transportation, forced the Legislature to pass a watered-down compromise bill that blocks only future PPP projects, but allows the current Trans-Texas Corridor to go forward.

Public opposition to PPP financing encouraged Chairman of the U.S. House Transportation & Infrastructure Committee, James Oberstar, and Transit Subcommittee Chairman, Representative Peter DeFazio, to issue a May 10, 2007, letter to governors and state transportation officials that warned about rushing into PPPs that did not fully protect the public interest.

"We don’t need their advice, frankly," said Indiana Governor Mitch Daniels. He said the letter was "nothing but Congressional posturing." Daniels’ criticism was typical of the response from state officials.

National Surface Transportation Policy and Revenue Study Commission Vice Chairman, Jack Schenendorf, told the conference attendees that the federal program no longer has a sense of mission, which has led to competition among the states for federal funds, and to the proliferation of “earmarks” for local political advantage.

Regardless of the finger-pointing, the fact remains that driving in urban areas is a nightmare, and driving on the interstate system is like playing tag with 18-wheelers, and it’s getting worse, not better. The people want relief, but not at the expense of bondage to PPPs.

Officials claim that transportation revenues from traditional sources are barely adequate to maintain existing roads, and do not provide for future construction. If this contention is true, the next question to be answered must be: is this the result of inadequate fuel tax rates, or have the revenues from fuel taxes been siphoned off for other purposes?

This question directed at transportation officials produces an incredible array of slippery answers. Legislators, at every level of government, should insist that transportation taxes be spent on nothing but transportation. If transportation taxes are used exclusively for transportation needs, and the revenue is inadequate, then a tax increase is required to meet the needs of the people.

Realistically, with gas prices above $3 per gallon, no politician will suggest increasing the gasoline tax, when it is so much easier to sell off a highway to a PPP, and reap billions in new money -- without having to ask the voters for a tax increase.

The voter still pays; he just won’t have a vote. And the price he pays will be more. Toll-roads built or operated by PPPs must pay a profit to the shareholders of the firms that put up the money. If the state builds and operates the infrastructure, that profit does not have to be built into the price, and therefore, the voter saves a bundle.

Infrastructure sales to PPPs is the hottest ticket in town. It’s going to take a monstrous effort by the people to reverse this trend that is clearly rushing across the nation like a tidal wave. Transportation officials see PPPs as the answer to their revenue problems. Legislators tend to “go along” with the budget committee, unless they are peppered by contacts from their constituents.

Texas voters tried valiantly to put a moratorium on the sale of the Trans-Texas Corridor to Cintra-Zachry, the Spanish-Australian PPP that wants to pay $7.2 billion to the state. They succeeded in the legislature, but threats from the Governor and the U.S. national government ignored what the people want.

In every state, and every community, someone is planning, right now, to sell public infrastructure to a public-private partnership. Chances are better than good that the PPP has its roots in another country. This can’t be good for America.


LINKS TO RELATED TOPICS:
Fiscal Policy: Taxation & Government Spending

Infrastructure Problems & Issues:
Energy, Transportation, Water & Sewer Systems,
Security Systems, Education, & Parks & Recreational Facilities



Henry Lamb is Founder and Executive Vice President of the Environmental Conservation Organization (ECO), which was established in 1988 to protect property rights from erosion by excessive environmental regulations. Lamb is also Chairman of Sovereignty International, an organization opposed to world government and to the statist policy agendas of political environmentalists, global-warming alarmists, and Leftwing Liberals.




Return to Top of Page

Go to the WEBSITE INDEX

Return to Beginning of
THE PROGRESSIVE CONSERVATIVE, USA,
Public Issues & Political Controversies


Return to Beginning of
THE PROGRESSIVE CONSERVATIVE, USA
Most Recent Articles


Return to Beginning of
THE PROGRESSIVE CONSERVATIVE, USA,
Volume IX, 2007


Return to Beginning of
THE PROGRESSIVE CONSERVATIVE, USA,
Subject Matter Highlights


Return to POLITICAL EDUCATION Homepage

CONTACT & ACCESS INFORMATION




LINKS TO PARTICULAR ISSUES & SUBJECT MATTER CATEGORIES
TREATED IN THE PROGRESSIVE CONSERVATIVE, U.S.A.:

Africa: Black Africa * Africa: North Africa * American Government 1
American Government 2 * American Government 3 * American Government 4
American Government 5 * American Politics * Anglosphere * Arabs
Arms Control & WMD * Aztlan Separatists * Big Government
Black Africa * Bureaucracy * Canada * China * Civil Liberties * Communism
Congress, U.S. * Conservative Groups * Conservative vs. Liberal
Constitutional Law * Counterterrorism * Criminal Justice * Disloyalty * Economy
Education * Elections, U.S. * Eminent Domain * Energy & Environment
English-Speaking World * Ethnicity & Race * Europe * Europe: Jews
Family Values * Far East * Fiscal Policy, U.S. * Foreign Aid, U.S. * Foreign Policy, U.S.
France * Hispanic Separatism * Hispanic Treason * Human Health * Immigration
Infrastructure, U.S. * Intelligence, U.S. * Iran * Iraq * Islamic North Africa
Islamic Threat * Islamism * Israeli vs. Arabs * Jews & Anti-Semitism
Jihad & Jihadism * Jihad Manifesto I * Jihad Manifesto II * Judges, U.S. Federal
Judicial Appointments * Judiciary, American * Latin America * Latino Separatism
Latino Treason * Lebanon * Leftists/Liberals * Legal Issues
Local Government, U.S. * Marriage & Family * Media Political Bias
Middle East: Arabs * Middle East: Iran * Middle East: Iraq * Middle East: Israel
Middle East: Lebanon * Middle East: Syria * Middle East: Tunisia
Middle East: Turkey * Militant Islam * Military Defense * Military Justice
Military Weaponry * Modern Welfare State * Morality & Decency
National Identity * National Security * Natural Resources * News Media Bias
North Africa * Patriot Act, USA * Patriotism * Political Culture * Political Ideologies
Political Parties * Political Philosophy * Politics, American * Presidency, U.S.
Private Property * Property Rights * Public Assistance * Radical Islam
Religion & America * Rogue States & WMD * Russia * Science & Ethics
Sedition & Treason * Senate, U.S. * Social Welfare Policy * South Africa
State Government, U.S. * Subsaharan Africa * Subversion * Syria * Terrorism 1
Terrorism 2 * Treason & Sedition * Tunisia * Turkey * Ukraine
UnAmerican Activity * UN & Its Agencies * USA Patriot Act * U.S. Foreign Aid
U.S. Infrastructure * U.S. Intelligence * U.S. Senate * War & Peace
Welfare Policy * WMD & Arms Control


This is not a commercial website. The sole purpose of the website is to share with interested persons information regarding civics, civic and social education, political science, government, politics, law, constitutional law and history, public policy, and political philosophy and history, as well as current and recent political developments, public issues, and political controversies.



POLITICAL EDUCATION, CONSERVATIVE ANALYSIS

POLITICS, SOCIETY, & THE SOVEREIGN STATE

Website of Dr. Almon Leroy Way, Jr.

Government, Politics, Public Policy, Legal Issues, Constitutional Law, Government & the Economy, Cultural Values, Foreign Affairs, International Relations, Military Defense & National Security, Geopolitics, Terrorism & Homeland Security, American National Interests, Political Systems & Processes, Political Institutions, Political Ideologies, & Political Philosophy

INDEX FOR THE ENTIRE WEBSITE

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z




THE PROGRESSIVE CONSERVATIVE, USA

An Online Journal of Political Commentary & Analysis

Dr. Almon Leroy Way, Jr., Editor

Conservative & Free-Market Analysis of Government, Politics & Public Policy, Covering Political, Legal, Constitutional, Economic, Cultural, Military, International, Strategic, & Geopolitical Issues


Conservative Government Ensures a Nation's Strength, Progress, & Prosperity