The proposal to privatize a portion of New Jersey’s toll highway system — as bad an idea as it is — is not exactly unique. As The Washington Post writes today, selling off toll roads has become a growing trend around the nation.
Indiana has already leased a portion of the Indiana Toll Road to investors, placing it “at the leading edge of a nascent trend in which states and local governments are exploring the idea of privatizing parts of the United States’ prized interstate highway system.”
The idea goes beyond projects, such as Northern Virginia’s Dulles Greenway, in which states have turned to private companies to build or widen toll roads. Now, they are considering selling or leasing some of the best-known and most-traveled routes across America.
The trend started 1 1/2 years ago, when Chicago Mayor Richard M. Daley (D) pushed through a 99-year lease of the Chicago Skyway, nearly eight miles of elevated highway across the South Side, for $1.8 billion.
Since then, a New Jersey lawmaker has proposed selling a 49 percent interest in the New Jersey Turnpike and the Garden State Parkway. New York Gov. George E. Pataki (R) is trying to persuade the legislature to let investors rebuild or replace the Hudson River’s Tappan Zee Bridge. In Houston, Harris County officials are studying leasing 57 miles of toll roads.
Locally, Virginia transportation officials announced last month that they would lease a debt-ridden toll road outside Richmond, the Pocahontas Parkway, to a private firm for $522 million.
The idea, basically, is to bring cash to the table to ensure that the roads are maintained and that new projects might be able to go forward. And, as in the case of New Jersey, to find ways to offset shrinking revenues from other sources.
The privitization scheme is a libertarian’s dream, to be sure, but there are major flies in the soup.
Will companies take good care of highways? Will toll roads become too expensive to drive? Will investors pluck profitable routes, leaving others to crumble? What will happen to public toll-road workers — including 600 in Indiana who have been promised interviews by the new operators, but not the same job?
And there are potential budget implications — will the lease produce recurring revenues and, if not, what wil that mean for future budgets? And what about accountability? Who will residents and taxpayers turn to with complaints should privitization turns into a fiasco? Obviously, it will be the states’ governors and legislators who will have ceded control of one of the most basic functions of government to private entities.
The South Brunswick Post, The Cranbury Press