Pennsylvania nears Approval to Lease Roads to Private Investors

Tom Warne Report, 1 June 2012

Land Line Magazine – May 25, 2012

Pennsylvania highways are one step closer to being leased to the highest bidder under a bill that would give the state authority to partner with global groups to do road work in exchange for charging toll taxes. The Senate Transportation Committee unanimously approved the advancement of a bill to the Senate floor that would outline the framework for contracts with private organizations to pay for road work. If the Senate approves the bill – HB3 – it would move to Gov. Tom Corbett for his signature. House lawmakers, with a 128-66 vote, have already approved the measure. The Pennsylvania Turnpike is excluded from the bill, as it would require separate approval by lawmakers to be turned over to private investors.

Senate Transportation Chairman John Rafferty, R-Montgomery, said the bill is necessary in Pennsylvania’s current transportation funding crisis. The bill would allow public-private partnerships to lease a facility for up to 99 years. The Governor’s Transportation Funding Advisory Commission’s recommendations from last August estimated transportation funding needs would triple from $3.5 billion now to $10.7 billion by 2030. “This bill isn’t the answer to all of our state’s transportation problems, but it is an important step we can take to start addressing those concerns,” Rafferty said in a statement.

If the measure is approved, Pennsylvania will create a seven-member board to review toll proposals. The board must include four state legislators.

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