In Kasich's press conference in Cincinnati yesterday, he urged Southern Ohioans to support him in his plan to lease the turnpike.

Leasing public assets is admitting failure as a politician. In Indiana, the billions Governor Combover got for leasing the Toll Road went into other road projects that he slapped his name all over. Not that they weren't necessary, but he inherited a very tight (ie, balanced) state budget. Not having any money to throw around, he leased the Toll Road. Part of the rationale at the time was that it had been 'mismanaged'. Nothing could be further from the truth; if tolls were "too low" then it was the failure of politicians to have spend their political capital to do what was necessary to maintain the roads. I've seen no appreciable improvements on the Indiana Toll Road, save for the I-Pass, which I don't use anyway. Tolls have increased, but that was expected. I think the Ohio Turnpike is very well managed, its tolls are reasonable, and improvements timely. Kasich doesnt have the balls for even a slight tax increase, so he sells off state investments willy-nilly, probably to the enrichment of his supporters. If he were a REAL governor, he would have better ideas than a firesale of Ohio's public infrastructure. I find it really disgusting.

If Ohio did as Indiana did, which is to lease the Turnpike to build more roads, how are we going to maintain all this new pavement and bridges? Do they assume that the new capacity will induce more sprawl and more drivers, and thus more gas tax revenues? That happened very "successfully" for 80-90 years after the first federal gas tax in 1916. But vehicle-miles traveled is not growing, and with peak oil, the retirement of the Baby Boomers, and the revolt led by Generation Y against a drive-everywhere lifestyle, driving will likely decline.

 

So Ohioans will be stuck with a tax bill it cannot pay for having more empty four-lane highways in rural areas that are dying, drained of the lifeblood of all communities -- middle-class families and young workers.

Indiana's pro-highway lobby has managed to scam the state's taxpayers for years, and the taxpayers, being indifferent and unwilling to learn how state financing works, have been complicit in their own fleecing. Governer Daniels and the road-building advocates tout the fact that federal money will cover eighty or ninety percent of the construction of new interstate highways, and that lulls the taxpayers into thinking they're getting a bargain. What they don't understand is that the state has a statutory limit on the number of lane-miles it can maintain, and is already maxed out under that statute. The state is obilgated to assume the maintenance and operating costs of interstate highways, so for every mile of new four-lane expressway built, it has to abandon two miles of two-lane state road, often in the same counties traversed by the new expressway. Those former state highways seldom go away because they provide access to local farms, businesses, residences, and small towns. Local governing entites have to assume the maintenance costs of the roads they "inherit" in perpetuity, and pass them along in the form of higher property taxes. In addition, the vast amounts of land occupied by the new rights-of-way disappear from local tax rolls so that tax revenue is lost to the local entities. Local taxpayers get hit with a double whammy, losing existing tax base while having to assume additional road-maintenance burden.

 

Road advocates counter by saying their new highways will bring development that will generate revenue to more than offset the negative tax impacts. I'm skeptical of that argument, because when new development does come, it's often lured by ten-year tax abatements that mean it will be a long time before local taxpayers see any significant benefit. Meanwhile, the new roads bring noise and air pollution and attract the sort of interchange development (truck stops, trucker motels, "adult" businesses, etc.) that has more negative than positive effects upon quality of life in the area.

KJP and Robert Pence just wrote two good letters that should go to local newspapers and representatives.  Smashingly good!

Today's letter to the Turnpike:

 

I am not in favor of the Turnpike's decision to raise the speed limit to 70 miles per hour.  That speed limit surely means that more petroleum resources will be consumed.  There are social costs to consuming more petroleum: risk of spills while drilling in the Gulf, habitat destruction, more air pollution, smog, asthma, and dependence upon hostile foreign governments for fuel.

 

I heard that the speed limit was increased to attract business to the Turnpike.  The Turnpike should attract business by lowering fares.  The Illinois toll roads have placards that proudly state that fares are among the lowest in the country due to efficient operation.  The Ohio Turnpike could do likewise.  Efficient operation of the Ohio Turnpike  could be accomplished by a lean analysis to find which positions are superfluous and could be eliminated.  Facilities and construction standards seem excessive and overly expensive for a roadway.

Bill would prohibit deal for turnpike

April 19, 2011

Tribune Chronicle

 

A Democratic state lawmaker is developing legislation that would prohibit the Ohio Turnpike from being sold or leased to private investors.

 

Ronald V. Gerberry called Ohio Gov. John Kasich's idea to deal away the turnpike ''short sighted,'' ''a money grab'' and ''bad public policy,'' so the state representative from Austintown is moving to block the sale or lease of the roadway.

 

Gerberry said the one-time cash infusion through a lease does not serve Ohio's future interests and that selling off an asset is a poor decision.

 

''The Ohio Turnpike is the finest road in the state, and many northern Ohio residents oppose any action to relinquish the state's ownership or management,'' Gerberry said. ''The people of northern Ohio helped finance this asset and believe giving up ownership in any manner is wrong and foolhardy.''

 

Read more at: http://www.tribtoday.com/page/content.detail/id/555831/Bill-would-prohibit-deal-for-turnpike.html?nav=5021

^Totally agree.  Good for Mr. Gerberry.

Gerberry's wife was my biology teacher.  Back when she was "Miss Shrum".

All Kasich will do is blindly pour more money to the construction of more and more highways. He will do this without any thought or plan and yet that's exactly what we should have: a plan! If he proposes to do this we and our friends should offer an alternative and push it to try to get legislators to actually THINK about what they are doing.

 

 

Oversight on leasing turnpike weighed

BY JIM PROVANCE

BLADE COLUMBUS BUREAU CHIEF

 

COLUMBUS -- When a House committee puts its brand on Gov. John Kasich's proposed $55.5 billion, two-year budget, it is expected to reassert its authority when it comes to any long-term lease of the Ohio Turnpike.

 

Language in the roughly 3,200-page bill that writes between the lines of the governor's numbers would give Budget Director Tim Keen the authority to negotiate contracts for the private outsourcing of public assets, among them a long-term lease of the state toll road. Approval of the full General Assembly would not be needed.

 

Sen. Mark Wagoner (R., Ottawa Hills) said there should be no deal without a vote.

Read more at: http://www.toledoblade.com/State/2011/04/28/Oversight-on-leasing-turnpike-weighed.html

^The meaning of that second sentence is a  mystery to me.

In state budget legislation, each section of cost numbers is preceded by some text, usually a paragraph, describing what the numbers mean and/or if any additional or reduced governmental legal powers accompany them.

The Governor is handing the privitization authority to *his* Budget Director, Tim Keen.  I don't see how the legislature is changing that detail.

I could be wrong, but it sounds like the legislature would grant the budget director such authority and power.

Northeast Ohio transportation planners come out against leasing the Ohio Turnpike

Published: Saturday, May 14, 2011, 5:55 AM

By Tom Breckenridge, The Plain Dealer The Plain Dealer

 

CLEVELAND, Ohio -- Most elected leaders in big cities and counties here have a message for Gov. John Kasich -- don't sell or lease the Ohio Turnpike.

 

Officials with a powerful, five-county planning body voted Friday to oppose Kasich's idea of landing billions of dollars by leasing the 241-mile toll road.

 

Putting the turnpike in the hands of a private operator would lead to higher tolls and less upkeep, while diverting toll-dodging traffic to alternative routes, making those roads less safe and more costly to maintain, board members of the Northeast Ohio Areawide Coordinating Agency believe.

 

"It's not our goal to raise a political obstacle ... but to raise legitimate concerns," said Medina County Commissioner Stephen Hambley, a Republican and chairman of the NOACA board, whose members include mayors, county commissioner and engineers from Cuyahoga, Lorain, Medina, Lake and Geauga counties.

Read more at: http://blog.cleveland.com/metro/2011/05/notheast_ohio_transportation_p.html

If the cities are for something, then chances are Kasich will be against it. I suspect Kasich's next move will be do everything possible to destroy NOACA and all other MPOs.

Ohio Turnpike workers are paid 17% more than ODOT employees

Published: Sunday, May 15, 2011, 11:00 AM    Updated: Sunday, May 15, 2011, 8:59 PM

By Patrick O'Donnell, The Plain Dealer The Plain Dealer

 

CLEVELAND, Ohio -- The Ohio Turnpike, the only road in Ohio where motorists must pay to drive, also pays more.

 

The turnpike pays its employees about 17 percent more, on average, to operate its road than the Ohio Department of Transportation, the other state agency that handles roads.

 

The numbers exclude turnpike toll collectors, who have no counterparts in ODOT, and whose pay was criticized earlier this year by Gov. John Kasich as he considers leasing the road to a private company.

 

Read more at: http://blog.cleveland.com/metro/2011/05/ohio_turnpike_workers_are_paid.html

Two decades ago, Cleveland's Largest Newspaper reported that the turnpike had 8 "regional directors", each of whom was paid $90,000* to manage 30 miles of highway.  That was like paying somebody $90,000 to manage the length of I-90 as it crosses Ashtabula County.  Lots of fat in the turnpike.

 

My impression is that the turnpike jobs are political patronage jobs.  If you know somebody with political connections in Ohio, you can get a damn good paying job.  Quid pro quo.  Donate $5000 to your local state senator and you're in. 

 

*I think it was 8 regions and $90,000.  I didn't save the article.

In the early 1990s, Gov. Voinovich appointed a Cleveland-area Teamsters union leader named Carmine Parise to run the Ohio Turnpike. The guv withdrew the nomination when the media reported that Parise was an alleged associate of James T. "Jack White" Licavoli, a former boss of the Cleveland Mafia. So Voinovich appointed Umberto Fideli instead -- who also was alleged to have mob ties through his company that insured Turnpike construction contractors and workers. After Voinovich, Taft appointed Tom Noe to head the Ohio Turnpike Commission. Noe was the mastermind of the "coingate" scam involving the Ohio Bureau of Worker's Compensation, from which Noe allegedly pocketed $4 million.

Parise, Fideli, Noe: holy cr@p!  The Teamsters have always been buddies with the Republicans.  Jimmy Hoffa was a Republican and cozy with Dick Nixon, IIRC.  To their credit, the Bush-41 government "intervened" in the Teamsters and reorganized it.  I liked the new leader Ron Carey.  He got on the wrong side of somebody and got removed on some trivial scandal.  1990s politics.

Lorain Council opposes sale of Ohio Turnpike (with video)

 

Published: Tuesday, May 17, 2011

Morning Journal Staff

[email protected]

 

LORAIN — City Council hopes Ohio Gov. John Kasich will not sell or lease the Ohio Turnpike.

 

Council voted 11-0 on a resolution opposing the possible sale.

 

Though the turnpike does not run through Lorain, it is just south of the city.

 

If the turnpike were sold, rates likely would go up, but maintenance would decrease, said Councilman Brian Gates. He sponsored the legislation in part because his father, Jim Gates, is a retired toll collector for the turnpike.

 

Read more at:http://morningjournal.com/articles/2011/05/17/news/mj4544362.txt

Summary of amendment being added to the state operating budget:

 

"Requires the General Assembly to enact legislation to guide the Request For Proposal process for the sale or lease of the Ohio Turnpike and allows the Director of OBM to provide compensation to responsive unsuccessful bidders or a proposal to lease the turnpike."

^The "Cronies Can't Lose" amendment of 2011

ODOT says big bucks from leasing Ohio Turnpike would be spent in northern Ohio

Published: Saturday, June 11, 2011, 3:00 PM    Updated: Saturday, June 11, 2011, 11:11 PM

By Tom Breckenridge, The Plain Dealer The Plain Dealer

 

CLEVELAND, Ohio -- Most of the several billion dollars the state hopes to collect by leasing the Ohio Turnpike would be spent on projects across northern Ohio, where the 241-mile toll road operates, says the director of the Ohio Department of Transportation.

 

A lease deal would limit toll increases, ensure the Turnpike is properly maintained and deliver money for projects that won't get done under the current, dwindling stream of tax dollars, says ODOT Director Jerry Wray.

 

Faced with growing opposition here to a Turnpike lease, Wray went on offense last week to refute what he calls "misinformation" about the proposal, which is at a crucial stage. Ohio legislators are crafting a two-year spending bill that includes provisions to pursue a turnpike lease.

Read more at: http://blog.cleveland.com/metro/2011/06/post_475.html

These are old documents but still relevant..........

 

Position Paper

http://freepdfhosting.com/ac97c24b56.pdf

 

Briefing Paper

http://freepdfhosting.com/f8b5c80980.pdf

 

Moving Ohio into the 21st Century

Creative funding for tomorrow’s economic foundation

A Briefing Paper

(see position paper for full details )

March 2006

 

The challenge

· From 1990-2000, vehicle miles in Ohio rose 15 percent, but the state’s population grew less than 1 percent;

· Up to half of our urban freeways are congested, while many roads/bridges are in unsatisfactory condition;

· Ohio has a 10-year backlog of unfunded road and bridge repairs, despite a new gas-tax increase;

· The state lacks transportation alternatives to share the traffic burden, with little or no state funding for them;

· Gas tax revenues may level off or even decline as fuel costs rise, and more fuel-efficient vehicles are bought;

· Ohio may not be able to afford to maintain new or widened highways once they are completed.

 

Diversify Ohio’s transport infrastructure

· Since 1980, rail freight traffic nationwide has grown 64 percent; lack of private financing to boost capacity is forcing more heavy, pavement-damaging trucks onto Ohio’s roads;

· State funding for transit in Ohio has fallen by more than 60 percent since 2001, even as motorists look to transit as gas prices spike;

· Most airports in Ohio have seen passenger traffic decline due to  increased security and fuel prices;

· Ohio has been unable to find a “painless” way to finance development of fast, fuel-efficient passenger trains serving cities, towns and airports in this densely populated region.

 

Solution: lease the Ohio Turnpike

· In 2004, the Chicago Skyway was leased to a private consortium for a one-time payment of $1.8 billion while in 2006, the same consortium won $3.85 billion bid to lease the Indiana Toll Road;

· The Ohio Turnpike might be leased for about $8 billion, based on the Chicago and Indiana leases;

· In communist China, a new interstate highway system is being financed by private leases, while capitalist America continues to build, maintain and operate highways via government processes;

· Leasing the Ohio Turnpike would provide the state with significant resources to create jobs by diversifying its transportation system and without raising taxes;

· Diversifying Ohio’s transportation system would reduce the strain on existing, aging highways and reduce

pressure for new highway capacity which future gas taxes may not be able to afford.

 

Proposed use of lease funds

Urban Road/Bridge Reconstruction Program  . . . . . . . . . . . . . $3.5 billion

Ohio Hub System (high-speed freight and passenger rail). . . $2.5 billion

Public Transit/Jobs-Access Trust Fund . . . . . . . . . . . . . . . . . . $1.0 billion

Rural Road Safety Enhancement Fund. . . . . . . . . . . . . . . . . . $0.5 billion

Short-Line/Regional/Tourist Railroad Development Fund. . . . $0.5 billion

                                                                                              $8.0 billion

 

Conclusion

A diverse, interconnected transportation system allows each mode to do what it does most efficiently. That

translates into reduced costs and enhanced convenience for travelers and shippers, making Ohio a more attractive

place to live, visit and do business. Using Ohio’s 20th-century transportation investments to build for the 21st

century is the most catalytic and cost-effective job-creation program the state can undertake.

Crains Cleveland Business podcast on the proposed lease of the Ohio Turnpike..... they don't sound convinced...

 

HEAR PODCAST AT: http://www.crainscleveland.com/article/20110718/AUDIO/307189970/-1/audio&Profile=-1

^CCB-podcast

Ohio would struggle to lease the OT even for the $3 billion that Indiana got.

1. The bond market is worse than year 2006

2. The OT does not have as much patronage as the ITR, so the savings are less (I'm skeptical)

3. The truckers lobby is already quite opposed and likely to stop this.

Kasich can expect a turnpike fight

Tuesday, July 26, 2011  03:06 AM

By Joe Vardon

 

THE COLUMBUS DISPATCH

 

TOLEDO - Gov. John Kasich senses another political fight brewing over one of his proposals - his intention to lease the Ohio Turnpike.

 

If yesterday's events in Toledo were any indication, Kasich's instincts are correct.

 

Kasich and Toledo Mayor Mike Bell held a news conference near the University of Toledo to champion the Republican governor's proposal to lease the 241-mile turnpike as a way to replace dwindling federal funds for sorely needed transportation projects.

 

READ MORE AT: http://www.dispatch.com/live/content/local_news/stories/2011/07/26/kasich-can-expect-a-turnpike-fight.html?sid=101

Kasich contradicted his office's fact sheet by saying he wouldn't promise to avoid using the money to operate state government.

 

"You never know when there's a crisis," he said. "I don't even know the legal mumbo jumbo. I don't have any intention of doing this to balance a budget, but you never know when there's a crisis, and I'm not going to preclude anything."

 

Kasich also would not commit to using the generated money (or even most of it) for projects in regions that contain the turnpike, such as Toledo or Cleveland.

 

"We've got to get out of the 'It's-just-about-us' mentality," Kasich said.

 

(1) Gasoline-tax receipts are not used to support the highway that Northern Ohio and Mahoning Valley motorists use and, (2) the receipts from the tolls paid by OT motorists will be used in another region of Ohio.  Probably Westerville or Greene County /sarcasm

THE HANNAH REPORT

ODOT Plans Turnpike Lease RFP Early in 2012

 

The Ohio Department of Transportation (ODOT) may begin putting out requests for proposals on a lease of the Ohio Turnpike in 2012, ODOT Director Jerry Wray told reporters Wednesday.

 

Wray said the department is working on selecting financial and legal advisors that have experience in leasing to help put the RFP together. The General Assembly would still need to approve of any lease proposal before it goes forward. 

 

The director made his comments after speaking to the Columbus Metropolitan Club, where he outlined the administration's vision of a turnpike lease. He told the audience that Ohio has the benefit of seeing what worked and what didn't in other states such as Indiana.

 

Any turnpike lease will not be long term, Wray said, aiming for somewhere between 30 and 50 years, with 40 years considered the best option. He said the state will not accept a large up-front payment, but instead will take a percentage of the tolls for a lifetime of the lease. He also said that the goal is to not use revenue to balance the budget, but noted that Gov. John Kasich has said that the revenue could be used for budgetary purposes in extreme circumstances.

 

The state will also not sign a non-compete clause as a part of the lease, he said. Such a clause would keep alternate routes from being maintained in order to keep traffic on the turnpike. The lease will address ways to try to keep truck traffic on the turnpike, and he said the state will maintain control over how tolls are increased.

 

READ MORE AT:

http://www.rotundacollection.com/

 

^I don't get it.  What's the benefit of giving a private entity control of the turnpike and simply asking for a percentage of the tolls in return?  The state could presumably take in more money maintaining ownership.  Is this just a political move?

^ I'm confused too.  I thought the upfront payment was the primary reason for the lease idea in the first place. 

 

From the PD story above: "The governor prefers a lease because of the up-front cash it would yield, Wray said."

http://blog.cleveland.com/metro/2011/06/post_475.html

I'm assuming the State of Ohio would no longer be responsible for the upkeep and maintenance of the road, correct? But doing so we'd be missing out on 100% of the revenue for the length of the lease.

I think the way the Turnpike is set up now, the state cannot use the surplus revenue from tolls for anything but turnpike things. I would imagine under the turns on the new plan and lease agreement, the state would be permitted to use the revenue from the lease for anything.

What if some of the money from any proposed turnpike lease was put toward linking Northern Ohio cities with speedy, efficent, rail service to Pittsburgh and Chicago?  Daytime alternatives to the Capitol and Lakeshore Ltds.  It would give folks an alternative to taking the Turnpike at all!

I'm sure every Proposal that is submitted will have a stipulation that would prevent any revenue that state would receive from being used for a service that would compete with the turnpike.

What if some of the money from any proposed turnpike lease was put toward linking Northern Ohio cities with speedy, efficent, rail service to Pittsburgh and Chicago?  Daytime alternatives to the Capitol and Lakeshore Ltds.  It would give folks an alternative to taking the Turnpike at all!

 

Under Kasich, Ohio will not spend any money on passenger rail. None. We have to wait or work with other states on having them take the lead on multi-state passenger rail projects.

 

However, I asked the freight railroads if they would be interested in any of the Turnpike's money, since moving to rail freight shipped by heavy trucks which underpay tolls for the damage they do to pavement and bridges would save the Turnpike money. Alas CSX and NS weren't interested in receiving any money from the lease of the Turnpike.

 

The end of the Hannah article says this....

 

 

He said he doesn't expect public-private partnerships to carry the state, but he said it will give the state a chance to do large projects and get them done sooner. In most cases, he said, many will be design-build projects.

 

Wray told the audience that public-private partnerships could include privatizing rest areas, having a private company do a project and paying the company back over time, and having a private company do the upkeep on a project. He cited the Brent Spence Bridge in Cincinnati, a project that could cost the state billions. He said the only way to do it in the next 30 years is to use some kind of public-private partnership.

 

In response to a question from Gene Krebs of Greater Ohio about using turnpike lease funds for transit, Wray said he is in favor of that, but said that is an issue that is being discussed in the administration.

Sorry about cross-posting this everywhere!

 

This is also a cautionary tale for the debate on leasing the Ohio Turnpike. This road (below) was built as a public-private partnership but is now wholly government-owned/maintained (like nearly all others) because the price for motorists to use the privately owned road was too high for it to be sustained privately. Perhaps the title of the article should instead be: "Americans don't love their cars at the free market price." How many other roads in the U.S. would never have been built or remained open if the free market was the actual determinant?....

 

San Diego County regional government to buy bankrupt toll road

July 30, 2011 |  9:34 am 

 

A San Diego regional government organization has agreed to purchase the bankrupt State Route 125 toll road near the U.S.-Mexico border for approximately $345 million.

 

Opened in November 2007, the 10-mile toll road in southern San Diego County was described initially as an example for Los Angeles and other traffic-beset regions on how a private-public partnership could build new roads and ease congestion.

 

Instead it became a cautionary tale about risky assumptions, and the stubborn opposition of motorists to paying tolls. In March 2010 the road's operator filed for Chapter 11 bankruptcy protection, noting that traffic counts were less than 50% of projections.

 

READ MORE AT:

http://latimesblogs.latimes.com/lanow/2011/07/san-diego-regional-government-to-purchase-bankrupt-state-route-125-toll-road.html

Firms lining up to help state determine turnpike's future

BY JIM PROVANCE

BLADE COLUMBUS BUREAU

 

COLUMBUS — Fourteen financial, legal, and consulting firms have expressed interest in exploring whether a long-term lease of the Ohio Turnpike would be a good deal for the state.

 

If the answer is yes, the consultant would lead the process of finding a private entity willing to pay big bucks to operate the 241-mile toll road across northern Ohio.

 

The consultant would determine the turnpike’s potential worth, seek proposals from potential operators, and negotiate a contract. The process would be subject to review by the General Assembly.

 

Read more at: http://www.toledoblade.com/State/2011/08/27/Firms-lining-up-to-help-state-determine-turnpike-s-future.html

August 31, 2011

 

Ex-turnpike director critical of lease plan

Conneaut’s George Distel urges state control

By MARK TODD - [email protected]

Star Beacon The Star Beacon Wed Aug 31, 2011, 09:00 AM EDT

 

CONNEAUT — A former executive director of the Ohio Turnpike Commission says a plan to lease the toll road to a private operator is ill-advised.

 

George Distel of Conneaut, who stepped down from the turnpike job in April, is critical of the plan pursued by Gov. John Kasich. Distel recently spoke out against the idea.

 

“When you review all the facts, it’s a step in the wrong direction,” he said.

 

For months, Kasich has urged lawmakers to consider a lease agreement for the 241-mile turnpike that would raise money for the state’s infrastructure needs. Earlier this year, Kasich said he wouldn’t settle for less than $3 billion for rights to operate the toll road. Once debts are settled, the state would net some $2.5 billion for roads, bridges and similar projects.

 

 

Read more at:

U.S. Transportation Dept. to revoke money used for Turnpike privatization study, Rep. Tim Ryan says

Published: Friday, October 07, 2011, 9:44 AM    Updated: Friday, October 07, 2011, 12:10 PM

  By Sabrina Eaton, The Plain Dealer

 

WASHINGTON, D.C. - Niles Democratic Rep. Tim Ryan says the U. S. Department of Transportation has informed his office that it has revoked federal funds the state of Ohio was using to study whether the Ohio Turnpike should be privatized.

 

Ryan said the news was delivered to his office in a conference call with participants from the offices of Reps. Marcy Kaptur of Toledo, Dennis Kucinich of Cleveland, Marcia Fudge of Warrensville Heights, Betty Sutton of Copley Township and U.S. Sen. Sherrod Brown of Avon.

 

Ryan and the other Democratic House members sent the U.S. Transportation Department a letter on Tuesday that questioned whether it was appropriate for the Ohio Department of Transportation to use $1.5 million from the federal State Planning and Research program to study privatizing a public asset.  Ryan said the funds were used to hire a consultant to determine how much money Ohio could receive if it leases out the turnpike and to help the state seek proposals from potential turnpike operators. The federal money was revoked in response to that letter, said Ryan.

 

READ MORE AT:

http://www.cleveland.com/open/index.ssf/2011/10/us_transportation_dept_to_revo.html

Scene Magazine posted the letter from the Ohio members of Congress.  Scene Magazine, NE Ohio's source for entertainment, news, and politics:

http://www.clevescene.com/scene-and-heard/archives/2011/10/07/ohio-reps-say-hell-no-when-state-asks-for-public-funds-to-study-privatization

 

October 4, 2011

 

Secretary Ray LaHood

Department of Transportation

1200 New Jersey Avenue, SE

Washington, DC 20590

 

Dear Secretary LaHood:

 

We are writing you today with our concerns over the use of federal funds by the current Ohio Governor's administration. It is our hope that the appropriate agency within your department can clarify the use of this money, and if the actions are against DOT guidelines, take the proper action to recoup these taxpayer funds.

 

Recently it has come to our attention that throughout the process of moving towards privatizing the Ohio Turnpike, the Ohio Department of Transportation (ODOT) has been using federal funds towards this purpose. This information was released to the public through an August 19th, 2011 ODOT document entitled "Ohio Turnpike Public-Private Initiative, Questions and Answers" (attached). It is our understanding that the portion of federal funds being used is through the State Planning and Research (SP&R) Program to fund a contractor advising the State on turnpike financing issues. While the SP&R Program's guidelines are laid out in a way that should get the full value from these investment dollars, we have serious concerns that using federal funds to progress plans to sell off a state asset is far from the intended spirit of the program.

 

As numerous recent reports and articles have documented, we have a serious infrastructure deficit in this country. The SP&R Program is exactly the kind of forward-thinking program we need to evaluate deficiencies in our infrastructure and find best practices solutions to rebuild America. However, using these funds to advance a privatization plan that could potentially severely cost drivers via increased tolls, threaten the job security of over 1,000 Ohioans, and drive up costs for local governments through increased maintenance costs of local roads, is a questionable use of federal taxpayer dollars and exposes a loophole in the program guidelines.

 

While we may not all agree on the State's actions towards privatization of the Ohio Turnpike, federal taxpayer funds should not be serving to facilitate a particular policy initiative to privatize a public asset. Should the US Department of Transportation and the appropriate administrators find that the State of Ohio's use of these funds is in fact within the guidelines of the State Planning and Research Program, it is my hope we can work together to narrow the guidelines so use of these funds falls more in line with the mission of the Federal Highway Administration. Thank you for looking into this matter and we look forward to your response.

 

Sincerely,

 

Representative Tim Ryan

Representative Marcy Kaptur

Representative Dennis Kucinich

Representative Marcia Fudge

Representative Betty Sutton

GOP US reps from Ohio want turnpike funds back

Scmift & Chabot "stunned"

http://www.canadianbusiness.com/article/50773--gop-us-reps-from-ohio-want-turnpike-funds-back

FWIW, Chabot tried the same thing the Ohio Dems did so he could cut funding for the Cincinnati Streetcar project.

Conspicuously absent from the letter is Northern Ohio Republican Steven Latourette.

Turnpike privatization would fund transportation projects

By  Joe Vardon

The Columbus Dispatch Tuesday October 25, 2011 12:26 PM

 

If Gov. John Kasich does lease Ohio’s turnpike, most of the proceeds would go toward transportation projects north of U.S. Rt. 30.

 

But the Republican governor cautioned this morning that he didn’t yet know if he would proceed with leasing it, referring to an earlier decision to sell one state prison after originally planning to sell five.

 

“It may be that we’ll look at it and this isn’t the right time,” Kasich told reporters this morning, following his speech in Columbus to the Ohio Transportation Engineering Conference. “We may find out it’s better to bond against the (turnpike) revenue than it is to lease, I don’t know yet. We’re going to look at it thoroughly, but we have a lot of needs in this state.

 

Read more at: http://www.dispatch.com/content/stories/local/2011/10/25/turnpike-privatization-would-fund-transportation-projects.html

“at least half” of the funds would go to northern projects,

 

Just raise the gasoline tax

 

Kasich’s plan also includes to fund projects adjacent to the turnpike — such as building sound walls

 

The turnpike website says that property owners were compensated in lieu of building soundwalls.

"Get on the Bus" Kasich to NEO pols:  if you'll support me selling the turnpike to my friends, I promise I'll send most of the money to northeastern Ohio.  Trust me.    :evil:

 

 

... while reducing the budgets for the 3rd, 4th, and 12th ODOT districts dollar for dollar I bet.

My bet is Kasich spends it on non-stop sound barrier walls (the 9 year useable-life models) between Medina and Polaris Pkwy. 

 

I'm against the Turnpike fat and patronage jobs, but something about this deal smells funny....