Opinions On Leasing The Turnpike

Courtesy of the Williamsport Sun-Gazette, local lawmakers sound off on the leasing of the Turnpike:

• U.S. Rep. John Peterson (PA-R-5th): “Additionally, under this proposal, an estimated $1.1 billion annually in debt free funding — $150 million more than Act 44 — will be expended to address the aging infrastructure of the commonwealth and to stabilize mass transit need for the foreseeable future.”
• State Rep. Steve Cappelli (R-Williamsport): “We’ve wasted enough time with Act. 44. It’s time now to act. If we say no to this, what have we accomplished with respect to infrastructure?”
• State Rep. Garth Everett (R-Muncy): “I’d like to have our transportation staff take a look at it...If it’s an alternative to tolling Interstate 80, I’m really interested.”
• State Rep. Mike Hanna (D-Lock Haven): “I think it’s a great deal...From the start, I said leasing the turnpike was a good idea.”

Support from the Times-Tribune:

There are some significant advantages to the lease idea, the most important of which is that it would generate additional revenue to meet the transportation needs without establishing tolls on I-80. Moreover, the specifications for the bids established a guaranteed toll-increase schedule for the turnpike that the operator could not exceed. The I-80 toll plan, Act 44, includes no such cap for tolls on the turnpike or the interstate.

From an Editorial in the Patriot-News:

...several considerations lead us to the conclusion that it is the most realistic transportation-funding option available.

For starters, the Legislature is not going to resort to the usual and conventional means of meeting the state's transportation needs -- namely, higher fuel taxes and vehicle fees -- which would be our first choice.

Second, the current plan, known as Act 44, which rests to a large extent on tolling Interstate 80 to achieve its funding target, is just a bad idea.

On the finances behind leasing the Turnpike:

Under the proposal, Abertis Infraestructuras S.A. of Barcelona and Citi Infrastructure Investors of New York would pay $12.8 billion to lease the east-west turnpike and the northeast extension for 75 years. The total bid would be reduced by $2.3 billion to assume existing turnpike debt and other obligations. The remaining $10.5 billion would be invested in the Pennsylvania State Employees Retirement System. Rendell says this investment would generate about $1.1 billion per year for transportation needs, based on average annual returns of 12 percent over the past 20 years.