House Bill 1881 would will repeal the Trans-Texas Corridor from the transportation code

Kolkhorst bill would halt highway proposal

February 24, 2007

The Huntsville Item
Copyright 2007

AUSTIN — Two bills have been filed by state Rep. Lois W. Kolkhorst of Brenham which would terminate the state’s controversial Trans-Texas Corridor highway proposal.

If passed, House Bill 1881 will repeal the Trans-Texas Corridor from the transportation code, effectively killing the proposal by removing the enabling legislation which would have served as the foundation for any future corridor project.

“I’ve been fighting against the Trans-Texas Corridor for several years, and it’s not because I want to stop progress,” Kolkhorst said. “We need to look at new ways to fund roads, but this isn’t it.

“Some toll systems work, such as Harris County, but many do not. Plenty of people share my concerns about these private toll roads and how they’ll threaten communities, violate our property rights, and create an unregulated transportation monopoly. My bill allows Texas to scrap the Trans-Texas Corridor plan and start over.”

Kolkhorst said she has received literally hundreds of calls, comments, letters and e-mails against the Trans-Texas Corridor over the past few years.

She also has worked with the anti-corridor group Corridorwatch.org and received an A-rating from group.

Additionally, Kolkhorst filed House Bill 1880, which prohibits any public pension fund from investing in a private toll road project, such as the Trans-Texas Corridor.

The bill cuts off billions of dollars of funding that private toll road vendors, both foreign and domestic, would attempt to use in order to raise equity.

“No public money from a public pension fund should be used for a private toll road," Kolkhorst said. “It’s risky to invest our retiree pension funds into an unproven investment, especially with a foreign company. Texas doesn’t need a middle-man to build a road.

“Private companies should not leverage taxpayer dollars and then turn around and ask taxpayers and the public to give up oversight of a toll road project.”

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TxDOT uses 'strategic misrepresentation' to promote TTC-35

Auditor scolds agency for corridor project

Texas Department of Transportation downplayed costs, withheld information, audit says

February 24, 2007

By Ben Wear
Austin American-Statesman
Copyright 2007

The Texas Department of Transportation has downplayed the potential costs of the Trans-Texas Corridor and potentially inflated expected gains for the project, state auditors said in a report released Friday.

Auditors also said department officials have not been sufficiently open about information on the massive road project and should involve the state comptroller's office in overseeing future corridor contracts.

The department, in a response included in the 73-page audit, agreed with most of the auditors' observations and recommendations. But the department defended its decision to withhold for more than a year portions of its contract with corridor developer Cintra-Zachry. And it said the auditor was wrong to conclude that the contract commits the department to guarantee Cintra-Zachry a 12 percent rate of return on what it spends building a 300-mile toll road alternative to Interstate 35.

"The 12 percent was merely a modeling assumption," the agency's response says.

The state plans to delete language about a "12 percent guaranteed return on equity" now in the master development plan, the audit says.

The report also says the $3 billion in payments from the developer that the state expects to get could be reduced to nothing if interest rates and inflation are higher than expected. The agency in its response did not address that assertion.

Austin state Sen. Kirk Watson, a Democrat who serves on the Senate Transportation and Homeland Security Committee, in a statement said the audit should put the brakes on the corridor project pending further study.

"Texas cannot rush into a project that will help define our future when there are so many uncertainties about the present." Watson said. "We must step back, demand answers, and (ensure) the public is protected before work proceeds on the Trans-Texas Corridor."

The Trans-Texas Corridor was proposed in 2002 by Gov. Rick Perry as a 4,000-mile network of tollways, railroads and utility corridors roughly paralleling existing interstate highways in Texas. The department in late 2004 announced that it had selected Cintra-Zachry to create a master plan for developing the first and most-needed of those corridors, the twin to I-35.

The department and Cintra-Zachry in March 2005 reached a $3.5 million agreement for the partnership to create a plan, and the agency released much of the contract. But the agency said release of certain sections was not required until the actual plan was complete, an assertion that Texas Attorney General Greg Abbott's office disputed. Perry's gubernatorial opponents seized the opportunity to criticize.

The rest of the contract was released last fall when the master plan was completed.

The audit said "it is important that the Department makes all documents, plans, and contracts related to the project public in a timely manner." The audit did not define "timely." Even so, the agency remained defiant about its decision to keep the information confidential temporarily.

"Providing information prior to approval (of the plan) could jeopardize competition during the procurement process," the agency said in its audit response.

bwear@statesman.com; 445-3698

© 2007 Austin American-Statesman: www. statesman.com

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State Auditor's Office report is sharply critical of the Trans-Texas Corridor

Audit rebukes corridor costs

Report says TxDOT estimates unreliable for Trans-Texas plan

Feb. 23, 2007

By CLAY ROBISON
Houston Chronicle Austin Bureau
Copyright 2007

AUSTIN — The State Auditor's Office issued a sharply critical report on the Trans-Texas Corridor on Friday, concluding that taxpayers may never know how much they could end up paying for a toll road that parallels Interstate 35 from San Antonio to Oklahoma.

And if the Texas Department of Transportation doesn't improve its accounting of project costs, taxpayers won't know if the public costs are appropriate, auditors said.

The route, known as TTC-35, is the first phase of an ambitious, long-term transportation network proposed by Gov. Rick Perry to help ease congestion on Texas highways.

Eventually, TTC-35, stretching from Laredo through North Texas, could cost more than $105 billion, it has been estimated.

Although costs for the Trans-Texas tollway, including financing, are to be provided through a developer, some costs could be partially paid by the state, the audit report said.

Texans could pay $13.6 billion in financing costs for the initial phase of TTC-35 plus a possible $16.5 billion for additional rail line projects, according to the audit.

A TxDOT spokesman defended the "corridor concept" and said the agency disagreed with some of the auditor's recommendations.

The corridor concept "is the most logical, most attainable way for us to relieve congestion," spokesman Randall Dillard said.

But the report, released less than a week before a scheduled Texas Senate committee hearing on toll roads, is sure to add fuel to a political controversy that has raged for months.

The Department of Transportation in March 2005 entered into a $3.5 million contract with Cintra Zachry LP, a private consortium, to develop a long-range plan to design, build, finance, operate and maintain the TTC-35 project.

Cintra is a Spanish company; Zachry is based in San Antonio.

The state agency has succeeded in carrying out part of the agreement with the consortium, auditors noted.

"However, weaknesses in the department's accounting for project costs create risks that the public will not know how much the state pays for TTC-35 or whether those costs are appropriate," they concluded.

The audit noted a "lack of reliable information regarding projected toll road construction costs, operating expenses, revenue and developer income."

The transportation agency plans to enter separate contracts with developers for each segment of TTC-35 and is negotiating a contract for the first segment, Texas 130 near Austin.

Although the state could receive $3 billion in concession payments from developers, such payments could be reduced if inflation, interest rates and other factors increase the developers' costs, auditors said.

Auditors recommended more legislative oversight of the Trans-Texas Corridor, the transfer of toll revenue projections from TxDOT to the state comptroller and increased public access to information about the project.

They also proposed that TxDOT officials provide regular financial forecasts to the governor, the Legislature and the comptroller and submit development agreement contracts of more than $250 million to the attorney general for review and approval.

David Stall, co-founder of Corridor Watch, a citizens group critical of the project, applauded the audit.

"They brought up certainly a number of valid points and things Corridor Watch has been concerned about," he said.

TxDOT's Dillard said the agency cooperated fully with the auditors and said the agency already has implemented some of the recommendations.

Perry spokesman Ted Royer said the governor "always appreciates new ideas for improving transparency and accountability in government."

The Texas Transportation Commission also has been seeking proposals for development of TTC-69, between Northeast Texas and the border. It would pass near the Houston area.

clay.robison@chron.com


© 2007 Houston Chronicle: www.chron.com

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"The report is sure to add fuel to a political controversy that has raged for months.

Auditors expose holes in TTC-35

02/23/2007

Clay Robison, Austin Bureau
San Antonio Express-News
Copyright 2007

AUSTIN — The state auditor's office issued a sharply critical report on the Trans-Texas Corridor on Friday, concluding that taxpayers may never know how much they could end up paying for a toll road that would parallel Interstate 35 from San Antonio to Oklahoma.

And if the Texas Department of Transportation doesn't improve its accounting of project costs, taxpayers won't know if the public costs are appropriate, auditors said.

The route, known as TTC-35, is the first phase of an ambitious, long-term transportation network proposed by Gov. Rick Perry to help ease congestion on Texas highways.

Eventually, TTC-35, stretching from Laredo through North Texas, could cost more than $105 billion, it has been estimated.

Although costs for the Trans-Texas toll way, including financing, are to be provided through a developer, some costs could be partially paid by the state, the audit report said.

Texans could pay $13.6 billion in financing costs for the initial phase of TTC-35, plus a possible $16.5 billion for additional rail line projects, according to the audit.

A TxDOT spokesman defended the "corridor concept" and said the agency disagreed with some of the auditor's recommendations.

The corridor concept "is the most logical, most attainable way for us to relieve congestion and improve safety on Interstate 35 and provide the transportation system needed for the future economic well-being of the state," spokesman Randall Dillard said.

But the report, released less than a week before a scheduled Texas Senate committee hearing on toll roads, is sure to add fuel to a political controversy that has raged for months.

The Department of Transportation in March 2005 entered into a $3.5 million contract with Cintra Zachry LP, a private consortium, to develop a long-range plan to potentially design, build, finance, operate and maintain TTC-35.

Cintra is a Spanish company, and Zachry is based in San Antonio.

The state agency has succeeded in carrying out part of the agreement with the consortium, auditors noted.

"However, weaknesses in the department's accounting for project costs create risks that the public will not know how much the state pays for TTC-35 or whether those costs are appropriate," they concluded.

The audit noted a "lack of reliable information regarding projected toll road construction costs, operating expenses, revenue and developer income."

The Texas transportation agency plans to enter separate contracts for each segment of TTC-35 with developers and is negotiating a contract for the first segment, Texas 130 near Austin.

Although the state could receive $3 billion in concession payments from developers, such payments could be reduced if inflation, interest rates and other factors increase the developers' costs, auditors said.

"Significant changes in the cost of financing each road segment could result in the department foregoing any concession payment," they wrote. "Instead, if the department chooses to build the road segment, the state may have to pay a portion of the costs from available (state) resources."

The master development plan also anticipates that developers may apply for $3.9 billion in federal loans for some construction costs, according to the audit.

Auditors recommended more legislative oversight of the Trans-Texas Corridor, the transfer of toll revenue projections from TxDOT to the state comptroller and increased public access to information about the project.

They also proposed that TxDOT officials provide regular financial forecasts to the governor, the Legislature and the comptroller and submit development agreement contracts of more than $250 million to the attorney general for review and approval.

David Stall, co-founder of Corridor Watch, a citizens group critical of the project, applauded the audit.

"They brought up certainly a number of valid points and things Corridor Watch has been concerned about," he said, including the "gross underestimate of costs."

TxDOT's Dillard said the agency cooperated fully with the auditors and said the agency already has implemented some of the recommendations.

"We will be reviewing the report and taking any other steps we feel appropriate to improve our processes in the development of this important alternative route to Interstate 35," Dillard said.

Some of the auditor's recommendations would require legislative action, he said.

Perry spokesman Ted Royer said the governor "always appreciates new ideas for improving transparency and accountability in government."

The audit report pointed out that TxDOT kept portions of its agreement with Cintra Zachry confidential for 18 months, citing proprietary concerns, though the attorney general's office ruled it was a public record.

The contract was made public in September.

"Given the scope and public nature of the Trans-Texas Corridor project, it is important that the department makes all documents, plans and contracts related to the project public in a timely manner," the audit said.

clay.robison@chron.com

© 2007 San Antonio Express-News: www.mysanantonio.com

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The cost of TTC-35 is the tip of the iceberg

TTC-35: $105.6 billion

February 23, 2007

By JOANN LIVINGSTON,Managing Editor
Waxahachie Daily Light
Copyright 2007

A State Auditor’s Office report on the Texas Department of Transportation and the Trans-Texas Corridor set for public release today estimates a $105.6 billion price tag for the TTC-35 portion alone of the massive transportation project.

The TTC-35 represents 14 percent, or 560 miles, of the Trans-Texas Corridor’s proposed 4,000 miles of roadway criss-crossing the state. A 2002 estimate by TxDOT placed the cost for the entire Trans-Texas Corridor at between $145 and $184 billion.

Taken as a whole, the Trans-Texas Corridor on its completion could become “the longest network of toll roads in the world,” according to the audit. The TTC-35 portion of the project will bisect the center of the state from Mexico to Oklahoma, roughly paralleling Interstate 35.
“Although there are weaknesses in the Department of Transportation’s oversight, the department has been successful in administering certain key aspects of its Comprehensive Development Agreement contract with Cintra Zachry LP and negotiating the first road project for TTC-35,” according to a copy of the audit obtained by the Daily Light. “Weaknesses in the department’s accounting for project costs and monitoring of the developer create risks that the public will not know how much the state pays for TTC-35 or whether those costs were appropriate. Not adequately monitoring developers also exposes the state to future financial liability.”

The audit notes that the Master Development Plan anticipates that the TTC-35 could be developed through a series of 50-year contracts, with the “near-term road projects” or 330-mile stretch of the TTC-35 running from the Metroplex to San Antonio set for completion from 2010 to 2017.

The near-term segments are planned to open with four vehicle lanes, with the audit noting that the Master Development Plan specifies that the TTC-35’s various components (vehicle lanes, truck lanes, high-speed rail lines, freight rail lines and utility right-of-way) will not be developed simultaneously.

“After analysis of traffic patterns on those (four initial vehicle) lanes, the need for additional lanes will then be evaluated,” reads the audit, which notes if high-speed rail lines are constructed, those might not be open until 2024. The utility right-of-way is not expected to be developed until 2030.

“In addition, these rail lines are not currently planned to parallel all portions of TTC-35,” the audit reads. “Instead they could be constructed from Fort Worth to Dallas to San Antonio.”

The audit’s background information notes that “financial plans associated with TTC-35 are expected to change and updates are required every six months. Changes in a variety of factors - such as interest rates, construction costs and revenue forecasts - could result in significant changes to the financial plans for TTC-35.

The Master Development Plan developed by Cintra Zachry LP notes that “the design, right of way, construction, operations, maintenance and financing costs will be provided through a developer, but in some cases these items could be partially paid by the state.

“There will be a separate contract for each segment, or group of segments of TTC-35; each contract will be between the segment’s developer and (TxDOT),” the audit notes. “As of January 2007, none of these segment development contracts had been executed, although the department is currently negotiating such a contract for State Highway 130 (segments 5 and 6) with Cintra Zachry LP.”

The audit continues, “There is a lack of reliable information regarding projected toll road construction costs, operating expenses, revenue and developer income. Auditors made an effort to sum the elements of costs, operating expenses, revenue and developer income contained within the TTC-35 Master Development Plan.

“Upon its review of the sums, (TxDOT) states that this financial information was not correct because it is not possible to accurately estimate profits due to many unforeseen variables. This report contains financial information auditors summed from the Master Development Plan for every 10 years of the 50-year life of the projects,” according to the audit, which notes the plan met the requirements of the Comprehensive Development Agreement.

A key point noted in the audit is that while TxDOT could receive $3 billion in concession payments from the developers of TTC-35, “it could be required to forgo that revenue and, instead, the state could pay from available resources for any segment to be built.”

Concession payments could be reduced if factors such as the cost of financing each road segment, inflation and interest rates increase the developers’ costs, reads the audit, adding that the development of the TTC-35 could involve the use of public funds.

Although the plan says the project will require minimal public funds, with the near-term facilities requiring no public funds, the audit writes that public funds have the potential to be used relating to costs associated with the plan, costs for two of the near-term projects, freight rail lines and high-speed rail lines.

“Additionally, the department does not define federal credit assistance as public funds,” the audit notes. “The Master Development Plan anticipates that developers may apply for $3.9 billion in federal Transportation Infrastructure Finance and Innovation Act loans to fund the construction of the seven near-term facilities of TTC-35.”

Yet another key point in the audit is that TxDOT did not initially make all documentation related to the Trans-Texas Corridor public.

Although noting the department’s reasoning for not disclosing the conceptual financial plan and conceptual development plan for 18 months, the audit writes, “Given the scope and public nature of the Trans-Texas Corridor project, it is important that the department makes all documents, plans and contracts related to the project public in a timely manner.”

The audit makes several recommendations, including that the Legislature increase the availability and reliability of financial information by requiring TxDOT to increase transparency by increasing the public’s access to information about the Trans-Texas Corridor.

The audit also recommends that TxDOT transfer the toll revenue projection function and associated resources from itself to the Office of the Comptroller of Public Accounts.
“Having an independent third party project toll revenue could play a valuable role in increasing the reliability of financial estimates,” reads the report, which also recommends that the State Auditor’s Office audit each annual financial statement for a toll road segment or combination of segments.

The audit also recommends that the Texas Transportation Code be clarified to require that surplus toll revenue and other revenue paid to the department be deposited into the State Highway Fund and be subject to legislative appropriations.

TxDOT should prepare a financial forecast that includes toll revenue, construction costs, operating expenses and developer income before a contract is signed for each toll segment, according to the audit, saying copies should be provided to the governor, Legislature and the Office of the Comptroller of Public Accounts.

“(TxDOT should) account for project costs in a manner that allows the public to know how much the state pays for TTC-35 and whether those costs were appropriate,” the audit reads. “In addition, it should post these costs on its Web site in a timely manner.”

The audit also recommends that any Comprehensive Development Agreements contracts and draft agreements “to design, build, operate, maintain, lease or fianc/ sections of tolls road that will last more than four years or involved the state or another entity spending more than $250 million” should go to the Office of the Attorney General for review and approval.

TxDOT’s response to the audit is included within the report, which notes the department is generally in agreement with most of the recommendations.

Other findings and recommendations:

• The department doesn’t always charge costs to the correct project and excludes indirect costs from total project costs. An example cited by the audit was $52,000 of a $628,000 invoice that was charged to engineering was actually for public relations expenses. The audit also notes that 21 of 32 sampled invoices showed $4.3 million allocated to incorrect projects.

• The department does not always require vendors to submit information that could enable it to allocate costs to specific projects.

• The department should strengthen its monitoring of the developer’s compliance with the Comprehensive Development Agreement contract.

• While the department complied with applicable laws, rules and regulations in procuring the Comprehensive Development Agreement, the audit notes some areas could be strengthen to enhance the integrity of the process, including retaining proposal evaluation scoring sheets.

• Not retaining the individual scoring sheets of each committee member can lead to an appearance of impropriety in the selection process,” the audit reads.

• In comparing the draft segment agreements for segments 5 and 6 of State Highway 130, the audit notes the department should review the areas of non-compete clauses, toll enforcement, toll rates and financing for consideration to effect on future facility agreements.

A draft copy of the report was shared with TxDOT officials in late January, with the 62-page audit released Thursday to member of the Legislative Audit Committee, which includes Lt. Gov. David Dewhurst; House Speaker Tom Craddick; state Sen. Steve Ogden, chairman of the Senate Finance Committee; state Sen. Thomas Williams; state Rep. Warren Chisum, chairman of the House Appropriations Committee; and state Rep. Jim Keffer, chairman of the House Ways and Means Committee. Copies also were provided to Gov. Rick Perry and members of the Texas Transportation Committee.

“We found the discussion helpful and productive,” TxDOT executive director Michael W. Behrens, P.E., wrote in a letter dated Feb. 21 extending his appreciation to the State Auditor’s Office. “We share your goal of having a good audit report that is factual and understandable.”

In his letter Behrens references “the new and innovative tools that our elected officials have provides us to address the state’s transportation needs.”

“Because these tools are new, as well as complex, your report has provided significant content to help the reader understand these new tools,” Behrens wrote. “We value the audit process and appreciate the professionalism of your staff. Hopefully members of this audit team will be available for additional audits of these new tools and transportation projects.”

E-mail JoAnn at editor@waxahachiedailylight.com

© 2007 Waxahachie Daily Light: www.waxahachiedailylight.com

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"The governor’s mouthpieces should have saved their breath. Perry’s actions had spoken for them."

Editorial:

How does it look, Rick?

February 23, 2007

Waco Tribune-Herald
Copyright 2007

Rick Perry’s office felt it had some explaining to do Wednesday.

Too late.

The governor’s mouthpieces should have saved their breath. Perry’s actions had spoken for them.

The explaining was over the timing of a $5,000 donation from a pharmaceutical giant.

Timing is not the issue. Actions are.

Perry accepted $5,000 from the political action committee for Merck. The company produces Gardasil, which by Perry’s directive would be administered to all female sixth-graders in Texas unless parents opt out.

The target is a killer: a sexually transmitted virus that causes cervical cancer. Texas legislators nonetheless have lined up in numbers to block Perry’s move. They call it too presumptive, both toward families and toward the lawmaking process.

Perry had enough explaining to do relative to his proposal’s merits. He didn’t need to be explaining how Merck’s $5,000 contribution didn’t influence him.

That Perry got the contribution the very day his staff huddled on making the proposal is being called mere coincidence.

All we know is what this governor well should. Appearances matter.

Appearances should have mattered when Perry’s campaign accepted $5,000 from the political action group that represents TXU Corp. just a few weeks after Perry signed an executive order speeding up state permitting for coal-fired power plants.

They should have mattered when retired TXU chairman Erle Nye gave the Perry campaign $2,000 the very day the order was signed and another $25,000 a few months later.

But once again, timing is not as germane as the act itself. Someone who is making public policy that directly benefits a donor should be able to say, “I appreciate the gesture, but I don’t want people to think I’m being influenced by your graciousness.”

Do we really think Perry needed the stash?

Appearances should have mattered when the Perry campaign was accepting donations of roughly $25,000 a year from San Antonio construction mogul H.B. Zachry.

Zachry? That’s half of Cintra-Zachry, the state contractor for the Trans-Texas Corridor.

Perry’s office will assert that such mutual indulgence is a relationship merely of people who agree on what good government means. Taxpayers are not to infer favors bought and sold.

Sorry, governor, but it’s too late.

When it comes to conflicts of interest, appearance is all that matters. Oh, yes, and actions. Timing? Not so much.

© 2007 Waco Tribune-Herald: www.wacotrib.com

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"Drivers would have to have EZ tags."

Toll road proposed for 288

February 22, 2007

KHOU-TV (Channel 11) Houston
By Wendell Edwards
Texas Cable News

The population explosion in Brazoria County has made rush hour traffic on highway 288 bumper to bumper.

There could be some relief in sight in the form of a toll road, but it’s going to cost you.

The plans that were introduced have crews building toll road lanes on a 26 mile stretch of Texas 288.

Two lanes in each direction will be build along the median from 59 to 610.

Three lanes will be build from 610 to the Beltway in each direction.

From the Beltway to County Road 60 near Rosharan will be back down to two lanes in each direction.

“TxDOT always planned for 288 to be a major corridor. We knew there would be a lot of expansion. There would be of course a lot of residential and a lot of coming from Brazoria county into Harris County,” said Norm Wigington With the Texas Department of Transportation.

The drivers would have to have EZ tags.

Pearland City Councilman, Kevin Cole supports the plan. “It’s a good thing. The 288 corridor is the last major corridor in Houston, with this close proximity to Houston to develop.”

TxDOT says if approved the currently lanes on 288 will remain free.

That’s good news for those who constantly use that highway.

“It’s gridlocked. It’s horrible. It’s horrible to be on the traffic on 288,” says Regina Coyle who lives in Pearland.

On average, TexDOT says, 140,000 drivers use 288 every day.

People have until March 9 to tell the state what think about the idea.


© 2007 Texas Cable News: www.txcn.com

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Macquarie hopes to add Texas State Highway 121 to its toll road portfolio

MIG turns US tollroads to gold

February 22, 2007

By Nick Lucchinelli
AAP
Copyright 2007

PROFITS were expected to keep rolling in for international tollroad operator Macquarie Infrastructure Group, as it capitalised on exposure to the growing US market.

The group today announced a half year net profit of $1.44 billion, up 76 per cent on the previous first half, while also predicting double digit earnings growth over the next twelve months.

This would be largely driven by the US tollroad sector, said chief executive Stephen Allen.

"We have been very clear that we see much of the growth in the tollroad sector coming from the United States,'' Mr Allen said.

"Private investment represents a practical response for US legislators to the significant issues generated by the combination of growing congestion and under-investment in road infrastructure, in an environment where there is increasing competition for the available public funding sources.''

MIG will look to co-invest in more US assets with fellow Macquarie Bank spin-off, Macquarie Infrastructure Partners.

One such project MIG has bid for is the SH 121, a new 22 kilometre tollroad to be built near Dallas, Texas.

MIG expected to learn whether its bid had been successful by the end of the month.

US assets were very solid performers for the company in the first half.

Earnings before interest, tax, depreciation and amortisation (EBITDA) on MIG's Indiana toll road increased 57.7 per cent during the period, while the Dulles Greenway tollroad in northern Virginia increased 45.7 per cent.

The Skyway in Chicago was less impressive, posting EBITDA growth of 2.3 per cent, which the company attributed to roadworks. Non-US assets generally performed less impressively.

EBITDA for the 407 ETR in Toronto was 9.7 per cent higher, while the M6 in England rose by 27.5 per cent.

MIG also spun off Australian assets including the Eastern Distributor, M4 and M5 during the period into the Sydney Roads Group, which is now the subject of a Transurban takeover bid.

Mr Allen said the move represented an important evolution of the business.

"The purpose of the demerger was to enhance value for MIG security holders and we believe this has been realised: MIG achieved a 27 per cent internal rate of return for the divested Sydney toll roads.''

The company was happy, too, with its on-market buy back, with $303 million of $1 billion acquired since October, representing 11.1 per cent by volume of the securities traded since the buy back began.

The company maintained previous distribution guidance of 20 cents per stapled security for 2006/07 and gave preliminary guidance of 20 cents for 2007/08.

© 2007 News Limited: www.news.com.au

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Australian company predicts strong earnings on U.S. Toll roads

US to underpin MIG earnings growth

February 22, 2007

The Age (Australia)
Copyright 2007

International tollroad operator Macquarie Infrastructure Group (MIG) is banking on the US market to underpin strong earnings growth and says Australian motorists need to be re-educated about toll rates.

The company on Thursday reported a 76 per cent surge in first half net profit to $1.44 billion, but conceded the result was influenced by gains from the demerger of three Sydney toll roads and the sale of a fifty per cent stake in its US operations.

Together, the deals swelled the profit by $644.8 million.

But MIG chief executive Stephen Allen said he expected the company to achieve double digit growth in earnings before interest, tax, depreciation and amortisation (EBITDA) in the next 12 months, largely on the back of its US investments.

"It continues to emerge as the most interesting market for private toll road operators and in the medium term, remains a place we will be able to generate returns for our security holders," Mr Allen said.

Traffic gridlock and chronic under investment in roads in the US was pushing demand for private investment, although public opposition to foreign ownership was a hurdle some US rivals would exploit.

"I fully expect those who are based in the US will continue to play to the foreign ownership card, it's effective in every market," Mr Allen said.

A major deal on the immediate horizon for MIG is the SH 121, a 22 kilometre tollroad to be built near Dallas, Texas.

MIG and partner Macquarie Infrastructure Partners will learn whether they're successful bidders by the end of the month.

The company's existing US assets performed well in the first half and all reported EBITDA growth.

MIG's Indiana toll road was the stand out with EBITDA increasing by 57.7 per cent during the period.

Non-US assets generally performed less impressively.

Earnings for the 407 ETR in Toronto rose 9.7 per cent due to lower costs while the M6 in England enjoyed EBITDA growth of 27.5 per cent, but was a beneficiary of roadworks.

Mr Allen said traffic growth for MIG's remaining Australian asset, the M7 Westlink tollroad, was below expectations and motorists may need to be educated about how the toll worked.

"Getting people aware that if they only travel five kilometres they only get charged for five kilometres," he added.

Mr Allen the spin-off of Sydney's Eastern Distributor, M4 and M5 assets into the recently listed Sydney Roads Group had been successful for security holders, delivering an internal rate of return of 27 per cent.

The company was happy, too, with its current on-market share buyback, with $303 million of $1 billion worth of shares acquired since October.

The company maintained its previous distribution guidance of 20 cents per stapled security for 2006/07 and gave preliminary guidance of 20 cents for 2007/08.

It will pay an interim distribution of 10 cents for the six months ended December 31, in line with last year.

MIG stapled securities closed two cents higher at $3.85 on Thursday.



© 2007 AAP: www.theage.com.au

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"I think we've created a monster. I think we're headed in a totally wrong direction. I'm not so sure we haven't already signed away the farm."

Senate committee grills two commission nominees over toll roads, other issues

Committee approves the two, now whole Senate must confirm

February 22, 2007

By Mike Ward
Austin American-Stateman
Copyright 2007

Two nominees to the Texas Transportation Commission got a jet-blast of criticism Wednesday from the Senate Nominations Committee, as lawmakers vented about road issues ranging from tolls to secrecy to big-ticket contracts.

The exchange in the nominations hearing marked the latest signal that many lawmakers are not happy with the transportation mega-agency, amid a continuing series of skirmishes between Senate transportation committee Chairman John Carona, R-Dallas, and Transportation Commission Chairman Ric Williamson.

During the nominations hearing, Ned Holmes of Houston and Fred Underwood of Lubbock at times looked like deer caught in headlights, as senators grilled them about their views on controversies that have been swirling for months around the agency's management and operations.

In the end, assured by the two men that they support more openness and will get answers to lingering questions about tolls and financing, the committee voted unanimously to approve their appointments. Both need to be confirmed by the full Senate.

"I think we've created a monster" in the Texas Department of Transportation, state Sen. Kevin Eltife, R-Tyler, citing the agency's rush to approve toll roads and private financing packages that stirred continuing controversy.

"I think we're headed in a totally wrong direction," Eltife said. "I'm not so sure we haven't already signed away the farm."

Holmes and Underwood said they could not predict how they will vote on issues because they have just started understanding the complexities of Texas transportation.

At one point, though, Underwood expressed frustration about being unable to get answers to some of his questions.

"I'm hoping the two of you will bring us a fresh approach to this," Eltife said, adding later, "Just because they started this five years ago and it's almost under contract is not the right answer" to questions.

The commission has five members, all appointed by the governor.

Eltife blamed the Legislature for much of the problem facing the transportation agency, saying that refusal to approve an increase in the state's gas tax to pay for road-building programs resulted in the agency having to resort to controversial alternatives.

"We're either going to provide transportation systems, or we're going to live with an incredibly impaired system," Holmes said.

Sen. Kirk Watson, D-Austin, quizzed the two nominees on whether they support more transparency in the operation of the regional boards that set tolls and make toll-road decisions.

Both indicated they do.

Watson also asked where they stand on a past agency practice of requiring local communities to make financial contributions if they wanted roads built immediately — "a hammer instead of an incentive," he called it.

Other senators criticized that practice as unfair to rural counties and those that cannot afford to pay, even if they desperately need new highways.

"I don't think it should be used that way," Underwood said.

mward@statesman.com


© 2007 Austin American-Statesman: www. statesman.com

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Austin mayor seeks windfall in selling airport

Austin ponders putting airport in private hands

Some council members say public should vote on leasing Austin-Bergstrom.

February 21, 2007

By Ben Wear , Kate Alexander
Austin American Statesman
Copyright 2007

City of Austin officials are considering leasing out the city's eight-year-old airport, a transaction that could bring a windfall of several hundred million dollars but would also put control of a key city service in private hands.

City Manager Toby Futrell has been sounding out council members in one-on-one meetings and has suggested that the council be briefed as a group in executive session in the coming weeks.

Such an arrangement, even if a council majority goes for it, would face myriad legal and political hurdles and would probably not occur anytime soon. And it's unclear how a private lease might affect ticket prices, parking fees, the future of the about 320 city airport employees or other airport services.

Mayor Will Wynn, at least, is convinced that the city should unload Austin-Bergstrom International Airport.

The airport's revenue was $9.6 million above its expenses last fiscal year, city Aviation Director Jim Smith said, and the city has averaged $8.9 million in net income annually since 2001. But federal law prohibits the city from using that money outside the airport site, instead requiring that it be plowed back into airport improvements.

Governments nationwide have been entertaining offers for toll roads, state-run lotteries and airports from foreign investors awash in cash. Futrell said the city has received no airport lease proposal, verbally or in writing.

Wynn said he has been lobbying his council peers for several months on the subject, picking up on a move by Chicago Mayor Richard Daley to lease that city's Midway Airport.

"There's no financial reason whatsoever for the city to own the airport, as by law we can make not one penny from its operations or even property rentals," Wynn said Tuesday. "So why not explore a sale or a long-term lease that could net us hundreds of millions of dollars upfront that we could put toward any number of community needs, such as transportation?"

A sale is not an option, however.

Chicago and a handful of other cities have pursued putting airports in private hands under a 1996 federal pilot program allowing up to five U.S. airports to be leased. Chicago, which began the process at least a year ago, has applied to the Federal Aviation Administration but has not been approved yet, said Robert Poole, transportation studies director for the Reason Foundation, a libertarian think tank. Under that program, a city can't lease its airport to a private company unless the FAA and 65 percent of airlines using the airport agree.

Airlines in the U.S. generally have been leery about privatization, fearing increased costs and less sway over airport expansion.

One airport, Stewart International Airport, north of New York, went private in 1999 under that program. But Poole said the British company that leased the airport decided last year to put its long-term lease on the market. Ironically, the latest buyer was a government entity, the Port Authority of New York & New Jersey.

Overseas, airport privatization has become the rule rather than the exception in recent years. According to an analysis by Poole, most large United Kingdom airports have gone private, along with airports in Hamburg and Frankfurt, Germany; Rome; Naples, Italy; Sydney, Australia; and Brussels, Belgium. Paris airport authorities have sold off a minority stake in the city's two major airports.

The Rome airport went for about 2.7 billion Euros, or about $3.5 billion at today's exchange rate.

Smith, the aviation director, said customers around the globe have given mixed reviews to privately run airports.

"Some of these privatizations have been a success, where the airport has become better from the community's perspective," Smith said. "And there's an equal number of examples where it's gotten worse."

He noted that the highest- rated international airports — in Seoul, South Korea; Hong Kong; and Singapore — remain in government hands.

Council Member Sheryl Cole said the potential revenue from a lease makes the concept worth exploring.

But other council members have reservations.

Brewster McCracken said that although it might not be legally required, he believes that the public ought to weigh in on a potential airport lease.

"My sense is that we have to take this to the voters, as a practical matter," McCracken said, adding that voters approved issuing $400 million in long-term debt to build the airport in the first place. Smith said the city owes $370 million in revenue bonds on the airport, money that would have to be repaid even if the city leases the airport.

"Frankly, I don't view this as very likely, because there are a lot of things that have to happen," McCracken said.

Lee Leffingwell said he is skeptical about the idea but is willing to listen to any proposals.

"It is only a conversation worth having in my view because of all the money involved," Leffingwell said.

No one involved at this point has any idea what a private contractor would offer. A multidecade lease of Midway Airport, according to various published estimates, could fetch $2 billion to $3 billion. That airport had almost 19 million passengers board and land there last year; Austin-Bergstrom had 8.2 million.

But the city would have to sacrifice some, if not all, control over the operation of the airport, and Leffingwell said he would be averse to losing that control. Leffingwell, Cole and Council Member Mike Martinez agreed that voters should have a say in letting go of the airport.

The ideas abound on how Austin might use that potential windfall.

Street and drainage infrastructure seem to top the list for several council members. State Rep. Mike Krusee, a Williamson County Republican who has been heavily involved in Austin issues as House Transportation Committee chairman, has been talking to Austin officials about leasing the airport and suggests that the money could be used to build a passenger rail line to the airport.

But Martinez cautioned against getting too giddy about the notional bankroll.

"This is a not a perpetual funding source," Martinez said.

Martinez said he was concerned that if the airport were handed over to a private entity, current policies to promote Central Texas businesses and give the airport a local vibe with Austin-based restaurants and live music would be lost.

"I doubt you would see such a commitment and investment from a private investor," Martinez said.

Not necessarily, Wynn said.

"Obviously we could write into any deed restriction or long-term lease things like environmental controls, worker protections, even design features," he said. "So we could essentially still control elements of the look, feel or taste of that airport."

Some considerations for Austin

•Austin could get a large infusion of money that could be used for other city purposes. Currently, all airport revenue has to be used for the airport.

•Austin would probably have to give up at least some control over airport operations. The more control Austin retained, the less money the city could get.

bwear@statesman.com; 445-3698

kalexander@statesman.com; 445-3618

© 2007 Austin American-Statesman: www. statesman.com

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"This governor should remember that he is a guest in the people's house. He doesn't have the right to come in and sell off all the furniture."

FOR SALE

Lotteries, roads, welfare work. Inquire at governor's office

As states outsource, debate about it grows

2/21/07

Associated Press
Copyright 2007

INDIANAPOLIS - Like the auto industry, the computer programming field and the customer-service business, the state of Indiana is outsourcing.

In the two years since Republican Gov. Mitch Daniels took office, the state has leased the 157-mile Indiana Toll Road to an outside company for the next 75 years for $3.8 billion, hired vendors for $1.16 billion over 10 years to process welfare applications, and brought in a company to serve food at a mental hospital. And now Daniels wants to lease the Indiana lottery for at least $1 billion over 10 years and put the money toward education.

Daniels is leading the way among cash-strapped governors who are contracting out services states historically have handled themselves. The primary goal of these deals: saving tax dollars, or generating quick cash that can be used to fix roads, reduce debt or provide college scholarships.

"All over America, leaders of both parties are now undertaking projects like Indiana did, to solve their crises and their own shortfalls without raising taxes," said Daniels, who was nicknamed "The Blade" for cutting taxes and spending as President Bush's first budget director.

But some legislators and government-watchers warn that some of these privatization deals have yielded shoddy service. And some fear that in leasing toll roads and lotteries, politicians are signing away a reliable, long-term stream of revenue for a big lump sum of money they might squander on some short-term ideas.

"There's a real danger you end up mortgaging your future," David Schulz, an infrastructure expert at Northwestern University. "You've got 50 or 60 years of lottery payments, but you've used it in the first couple of years."

Elsewhere around the country, Chicago in 2005 signed a 99-year lease of its 7.8-mile Skyway toll road for $1.83 billion, and Illinois Gov. Rod Blagojevich is one of several governors proposing to lease their state lotteries. New Jersey Gov. Jon S. Corzine, whose state has the highest property taxes in America, wants to outsource the New Jersey Turnpike. And several states have hired outsiders to run welfare operations.

"Doing nothing is not an option," said Pennsylvania Gov. Ed Rendell, who is considering leasing the Pennsylvania Turnpike to a private operator to help pay for $1.7 billion in transportation improvements.

Many of the deals have drawn criticism.

Retired University of Notre Dame economics professor Roger Skurski, testifying last year in a court case that failed to block the leasing of the Indiana Toll Road, calculated the state could have earned $1.5 billion to $8 billion more over the 75 years of the term than the $3.8 billion it collected in a single upfront payment.

"The state is forgoing the opportunity to make these numbers," he said.

The toll road lease was blamed for the November defeat of several GOP incumbents, and Daniels' lottery plan has met resistance from both parties.

"The rush to privatization is like driving too fast on a foggy morning. We risk collision if we go too fast," said Tom Tokarski, an Indiana highway activist.

Texas' welfare system fell into disarray during its first year of privatization. An audit there found more than 81,500 children over eight months lost health insurance because of problems with the new system.

Georgia and North Carolina complained about poor customer service, Medicaid claims being paid improperly or not at all and other problems after hiring a company to manage welfare operations.

"You have to be open to the possibility that things won't go as well as planned," said Celia Hagert of the Center for Public Policy Priorities, author of a report criticizing Texas' welfare changes. "You have to put client interests ahead of the desire to save money quickly."

Betty Bledsoe, 44, of Indianapolis, is watching Indiana's changes closely. The single mother of 12 children worries about a deal signed with an IBM Corp.-led partnership for $1.16 billion over 10 years to automate the processing of food stamps, Medicaid and other benefits.

Bledsoe's children — nine of whom are adopted — all receive Medicaid for disabilities that include autism, seizures and fetal alcohol syndrome. One received $77,000 in Medicaid-funded services last year.

"If one of my kids lost Medicaid, we would go under. I'd have to sell my home," Bledsoe said.

Mitch Roob, who leads Indiana's social services agency, said the state would have otherwise had to spend nearly $500 million upgrading its system for delivering benefits.

Some Indiana lawmakers are demanding more say over the signing of big outsourcing deals.

"This governor should remember that he is a guest in the people's house," said House Speaker Pat Bauer, a Democrat. "He doesn't have the right to come in and sell off all the furniture."

© 2007 The Associated Press: www.ap.org

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Such a Deal!

Static

They Get Us Coming and Going

2/21/07

Fort Worth Weekly
Copyright 2007

Exciting news, folks — Interstate 69, a proposed Texas-to-Michigan road that’s part of the Trans-Texas Corridor, may get built even quicker than expected!

Well, gosh, that’s a relief.

According to Keep Texas Moving, a newsletter from the Texas Department of Transportation, the TTC arm that would reach from Laredo to northeast Texas has been placed by federal transportation gurus on a short list for fast-track development.

Whew — Static was worried that Texas might forget itself and fund some regional or statewide public transit, but just in time, we’ve found a way to spend those dollars on more concrete.

And another fast-track!

When you combine it with the fast lane that our Guv put the TXU coal-fired plants in, it just makes you realize how modern and efficient our state is — we can get things done by government fiat regardless of how many actual citizens, air breathers, land owners, farmers, ranchers, mayors, business leaders, and environmentalists (like they matter) oppose it.

But what do you expect from a co-opted governor who bows at the altar of the energy industry and disputes the existence of global warming, even when his incessant use of hairspray is rumored to have burned away much of the ozone?

TxDOT, by the way, says all those alarmists are wrong when they claim that no-compete clauses in the contracts with foreign companies to build (and charge tolls on) the TTC would keep free roads in the same areas from being maintained or improved (“Detours on a Super-Highway,” Jan. 10, 2007).

The newsletter says “absolutely not!” If a road or an improvement is already in the 25-year plan, TxDOT says, it will be built — as will any improvement for safety. And the state can build whatever “competing” road projects it wants — as long as it compensates the foreign company for anything that cuts down on traffic on the privately run toll roads.

So, let’s see — that means we either pay the potentially outrageous tolls directly, or we go around on free roads and let the state pay tax dollars to compensate the poor mega-corporation.

Now that’s some contract.


© 2007 Fort Worth Weekly: www.fwweekly.com

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"A state entity that wants to listen to someone other than the pro-toll interests?"

'No-tag, no-toll' rally headed to Austin March 2

2/21/07

By Mary Lois Boatman
The Navasota Examiner
Copyright 2007

Important events are scheduled to happen in Austin in the next few weeks.

On March 1, there will be a public hearing held regarding the Trans-Texas Corridor. State Sen. John Carona is stepping up to the plate and asking for citizen input, without subjecting us all to another TxDOT dog and pony show.

The Senate Transportation and Homeland Security Committee will hold a public hearing in the Capitol Annex Auditorium.

Finally, a state entity that wants to listen to someone other than the pro-toll interests. It's predicted that this hearing will start early and go late.

Then, on Friday, March 2, farmers, ranchers, anti-toll, anti-corridor and anti-animal inspection groups will march up Congress Street in what is being called the "DON'T TAG TEXAS" rally.

It's very fitting that this will happen on Texas Independence Day!

Counties all around us are planning to attend. It's about time that the citizens of Grimes County stand up and voice their opinions. There will be a bus leaving from Brookshire Brothers in Navasota at 10:30 a.m. for anyone that wants to participate. I am the sign-up person for the Roans Prairie and Shiro area - 874-0101 or 936-718-8992. See page 1 for more information.

For those of you that saw the film "Truth be Tolled", the edited version is for sale for $13.95. Check the Web site, www:truthbetolled.com. or for more information. e-mail Mark Holmes at: mholmesies@aol.com


© 2007 The Navasota Examiner: www.navasotaexaminer.com

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"Other states have put stronger measures before their voters."

Property Rights Coalition Renews Call for Constitutional Amendment to Protect Texans

Property Rights Organization of Texas calls on legislators to pass lasting protections against the seizure of private property for economic development

2/20/07

PRNewswire-USNewswire
Copyright 2007

AUSTIN, Texas -- Texas lawmakers should revisit the issue of eminent domain reform to protect Texas property owners, announced the Property Rights Organization of Texas today.

Senate Bill 7, passed in the second called special session of the 79th Texas Legislature, sought to prevent eminent domain abuse through a statute rather than a constitutional amendment.

"While SB 7 provided a legislative fix to some of the problems created by the Kelo v. City of New London decision, these additional protections must now be made permanent by adding them to the Texas Constitution," said Nathan Rhea, executive director of the Property Rights Organization of Texas. "We are urging lawmakers to ensure the rights of hardworking Texas families and small business owners will not be left open to change in the future by a legislature unsympathetic to the rights of Texas property owners."

The Property Rights Organization of Texas (PROTexas), formed in 2005 following the U.S. Supreme Court's Kelo v. City of New London decision, is a coalition of groups and individuals dedicated to limiting the eminent domain powers of cities and counties to seize the property of one citizen for the benefit of another.

"Texas was the second state to address Kelo though by statue only and we have since fallen behind as ten other states have put stronger measures before their voters," said Rhea. "In the ten states that successfully passed constitutional amendments dealing with eminent domain reform last year, citizens overwhelmingly supported adding the protections to their state constitutions. Texans should be given the same opportunity."

This session, two constitutional amendments have been filed in the Texas State House, H.J.R 11 by Rep. Frank Corte (R-San Antonio) and H.J.R 12 by Rep. Burt Solomons (R-Carrollton). This Wednesday, the Texas House Land and Resource Management Committee will hold a hearing on these important reforms as well as other legislation dealing with reforming eminent domain.

More information about PROTexas, and eminent domain reform, can be found at http://www.protexas.org.

The Property Rights Organization of Texas (PROTexas) is a coalition of groups and individuals singularly dedicated to protecting the propertyrights jeopardized by the Supreme Court's Kelo v. New London decision.

SOURCE The Property Rights Organization of Texas

Related links: http://www.protexas.org

© 2007 PR Newswire Association LLC.: www.prnewswire.com

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Former URS executive is now regional transporation coordinator for Forth Worth

New coordinator will represent a slew of projects

Feb. 19, 2007

By GORDON DICKSON
Fort Worth Star-Telegram
Copyright 2007

Cinde Weatherby Gilliland is Fort Worth's new regional transportation coordinator.

She will represent the city's interests in a slew of high-dollar projects. Among them:

Expansion of the North Tarrant Express: Interstate 35W/Loop 820/Texas 183 corridor.

The Trans-Texas Corridor, the state's controversial plan to build long-distance toll roads and rail lines and possibly an outer loop around Dallas and Fort Worth.

The Metroplex regional rail initiative, including development of commuter rail from southwest Fort Worth to northeast Tarrant County and Dallas/Fort Worth Airport, and perhaps the Union Pacific line from Fort Worth to Arlington.

Relieving freight train gridlock at Tower 55, the rail intersection south of downtown Fort Worth. The long-term plan is to build a new rail line bypassing downtown and ask railroads to stop using the inner-city tracks for the bulk of their freight movement, including hazardous-materials shipments.

Her transportation experience in Dallas-Fort Worth dates back to 1975.

Most recently, she worked for several years at URS Corp., where she was a vice president. She was deputy project manager for the Denton County Transportation Authority's commuter rail study for a Denton-to-Carrollton line.

She also helped the Fort Worth Transportation Authority create a long-term strategic plan for the T bus and rail service.

She was deputy manager of a regional rail corridor study for the North Central Texas Council of Governments.

"Her experience with public and private transit organizations, along with her varied and broad background, is an advantage as Fort Worth continues to make the best possible use of its vast and varied transportation network ..." Fort Worth City Manager Charles Boswell said in a statement.

Prior to URS, Gilliland worked as a scientist at the Texas Transportation Institute.

She also was Fort Worth's coordinator for intergovernmental affairs from 1988-90.

Gordon Dickson, 817-685-3816 gdickson@star-telegram.com


© 2007 Fort Worth Star-Telegram: www.dfw.com

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"Texas had a chance to get rid of Mr. Perry, but it's still sleeping or just stupid."

Your thoughts on Gov. Rick Perry

February 18, 2007

Letters
The Dallas Morning News
Copyright 2007

Here comes the flood

Re: "Water Can't Wait – Austin needs to designate reservoir sites now," Monday Editorials.

What Gov. Rick Perry meant to say: "I support legislation that establishes more than 20 reservoir sites in statute because securing viable water supplies is vital to [attracting more and more people to] the state."

What Mr. Perry needs to do is stop encouraging Los Angeles-like overpopulation in northeast Texas.

Billy Hallmon, Dallas


Hog-wild since election

Re: "I'm just not buying what Perry's selling," by Steve Blow, Feb. 11 Metro.

I agree with Mr. Blow. Gov. Rick Perry acts like the November election was a tremendous mandate that validated his judgment. In reality, he probably would not have won had the field not been so fragmented.

I strongly oppose his proposals. They are all suspect as to his motives and the impact on our state. I surely hope we have enough sane legislators in Austin to put the brakes on him.

L.A. West, Dallas


Coincidence or nepotism?

Re: "Perry's son hired by firm consulting on lottery – Exclusive: Correlation denied, but company stands to gain from sale," Tuesday news story.

Gosh, what a coincidence. Craig McDonald, director of Texas for Public Justice, was quoted in your article as saying, "It's not always easy to pick your way through opportunities when you're related to the governor."

While that may have some validity, I would suggest that it's apparently easier.

Jeff Supulski, Carrollton


Their astonishing arrogance

As an Alaskan visiting the great state of Texas, I was thrilled after reading about Gov. Rick Perry that we just threw our governor out, Frank Murkowski. He was a bum, not unlike Mr. Perry.

The arrogance these people show is unbelievable.

Good luck with Mr. Perry and his son.

Ralph J. Beaulieu, Anchorage, Alaska


He must think we're dolts

Clearly, Gov. Rick Perry thinks we are stupid. How else would the same man who campaigned vigorously for requiring high school students to take four years of math and science and for improving higher education now want to do away with the Texas Academy of Math and Science at UNT, robotics research at UT-Arlington and the Center for Applied Biology at UTD?

This same man doesn't think we will notice that his former chief of staff is paid by the company that will gain the most from his executive order that all school girls receive a new vaccine? And whose son is employed by the company being paid to review the possible sale of the Texas lottery?

Unbelievable.

Cindy Warner, Coppell


Corrupt, collapsing society

What is wrong with Texas government? Gov. Rick Perry wants to sell the lottery to a company that just hired his son. Sounds like nepotism to me. Why and how can Texas sell sovereign U.S. soil to Spain for the Trans-Texas Corridor?

The only person I see benefiting from any of this is Mr. Perry. Now he also has imposed mandatory shots for sixth-grade girls to prevent HPV.

Society is corrupt and collapsing. Chaos and crime seem to be the new world order. Texas had a chance to get rid of Mr. Perry, but it's still sleeping or just stupid.

Steven McNeely, Cedar Hill


Stealing from the poor

Gov. Rick Perry recently proposed an amendment to the Texas Constitution to set aside $3 million per year for 10 years to find a cure for cancer. This would create thousands of jobs in Texas and would be a wonderful thing for Texans and the rest of mankind.

What Mr. Perry did not tell us is that he has orchestrated the reduction of Medicaid coverage for about 60,000 Texas children and adults. These Texans desperately need this coverage for their illnesses, including cancer.

This is one source of the funding for Mr. Perry's proposal and puts these Texans in the position of not being able to be cured of cancer by the research they financed.

Mr. Perry is a hypocrite of the worst kind. We do not need to fund cancer research by taking a pound of flesh out of indigent, disabled Texans.

Rhett Butler, Denton


© 2007 The Dallas Morning News Co www.dallasnews.com

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"Public interest has been sacrificed for the almighty dollar."

Taking a toll on our highway system

Feb. 18, 2007

By BILL GRAVES
Fort Worth Star-Telegram
Copyright 2007

I have a photo, from 1956, of a truck making its way through a Kansas Turnpike toll plaza. The truck, emblazoned with the Graves Trucking logo, belonged to my father's company.

As it turns out, 1956 was the year that the Kansas Turnpike opened. The project predated the Federal-Aid Highway Act -- President Eisenhower's historic initiative. In those days, a toll road was one of very few options available to states to build a freeway. Fifty years later, toll roads are surging in popularity -- but as a quick fix for state financial woes.

With state budget shortfalls and a general unwillingness to raise taxes, state politicians are flocking to private investors for the highway equivalent of the payday loan.

In 2005, Chicago leased Interstate 90 to the Australian Macquarie Infrastructure Group and Spanish Cintra for $1.83 billion to pay off city debt and fund nontransportation projects. In 2006, Indiana leased the Indiana Toll Road to the same firms for $3.85 billion. Gov. Ed Rendell recently asked for expressions of interest to lease the Pennsylvania Turnpike for as much as $16 billion. Other deals are in the works.

(Cintra and Zachry Construction of San Antonio are proposing to use $6 billion in private investment to build a 316-mile, four-lane toll road -- the Trans-Texas Corridor-35 -- from Dallas-Fort Worth to San Antonio and pay a $1.2 billion concession to the state. Cintra-Zachry would collect tolls for 50 years.)

It is easy to see why this new scheme is tempting to politicians. The nation's highway system needs to grow and be maintained, but states are facing crushing debt loads. Funds to relieve these problems must come from somewhere.

But the United States cannot maintain a national highway network if key segments are leased to the highest bidder. More than money is at stake. Leasing roadways allows states only to postpone, not solve, their budget problems -- and without understanding the long-term implications.

Privatization is dismantling the nation's interstate highway network. It's happening with the support and encouragement of the U.S. Department of Transportation and, until recently, without congressional review.

Alternatives exist. Since the interstate system's inception, fuel taxes have footed the bill. Trucking pays nearly $15 billion in highway user fees annually to the $35 billion Federal Highway Trust Fund. Fuel taxes can be uniformly administered, are based on verifiable measures of highway and vehicle use, are relatively simple to collect and not readily evaded, and do not create impediments to interstate commerce.

Privatization, on the other hand, lets operators increase tolls rapidly, robs the public of a degree of control and does not guarantee service and safety levels. A year ago, highway privatization was a little-understood niche financing scheme. It is fast becoming the financing of choice, as public interest has been sacrificed for the almighty dollar.

We must consider the impact of privatization on toll rates. A private company is usually allowed annual increases of a minimum of 2 percent to a maximum of the average rate of change in gross domestic product per capita (the accepted standard). Based on historical figures, annual increases could hit 6.2 percent, and privatized highways could soon become "Lexus highways," unaffordable for those on limited incomes. Those who can't afford higher tolls may use smaller, local roads that are inherently less safe.

And will a private operator ultimately act in the public's best interest? Many targets of privatization are crucial links in our freight and military logistics chains. Congress has a constitutional obligation to protect interstate commerce and our national defense, which makes it a necessary partner in the decision-making process.

Private operators may be reluctant to expand highways if forecast increases in traffic levels could not produce sufficient revenue increases. Congestion may go untreated if contracts have noncompete clauses that prohibit or discourage construction that would reduce traffic on the private highways.

This is not to say that public-private partnerships have no place in helping to solve the problem of how to fund our nation's infrastructure needs. Private financing can play a role, especially where it creates new capacity.

Having served two terms as governor of Kansas, I understand the pressures that our leaders face to find immediate solutions to complex problems. But I also know that constituencies expect their leaders to have the political will to do what's right rather than what's easy.

I challenge our leaders to find that will on this issue.

Just last year, America celebrated the 50th anniversary of the Dwight D. Eisenhower System of Interstate and Defense Highways. It would be a shame to see this system, the best in the world, be transformed during the next several years into a patchwork quilt of privately operated toll roads.

Former Kansas Gov. Bill Graves is president and CEO of the American Trucking Association. www.trucking.org


© 2007 Fort Worth Star-Telegram: www.dfw.com

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