Tuesday, September 23, 2014

Indiana toll road, privatized, goes bankrupt

Privatization alert II. Or shall we call it - -  Ex-Gov. Mitch Daniels, (R), fail:
In filing for bankruptcy, the company that operates the Indiana Toll Road has reignited an old debate about the controversial privatization of the Toll Road in 2006.
Those who opposed leasing the highway in 2006 are now outspoken, citing concerns about the future of the road and quality of its upkeep.
As we noted here, earlier, warning against these schemes:
FRIDAY, MARCH 22, 2013

Privatization Alert: Why Chicago On-Street Parking Is $6.50/Hr.

File this away as Walkerites at the Capitol look to transfer public assets to private interests for ideological satisfaction, short-term budget gains and long-term added costs to taxpayers, consumers, shoppers and commuters.

One case in point: outrageously expensive parking - - now $6.50/hr.- -  at Chicago ramps and on-street now leased seemingly forever to private operators:

[Consultant Richard Layman] wrote almost one year ago ("A lesson to cities that they need to be very careful when leasing assets to public private "partnerships") about the continuing debacle of Chicago's long term lease of its parking garages and parking meters to a for profit consortium.
Hat tip, streetsblog.net 

Same sort of big toll increases continue since its leasing at the Chicago Skyway:

On January 1st, drivers who use the Chicago Skyway toll road will be paying more to use the 7.8 mile length of tollway...from the current $3.50 to $4.00.

According to a report from Fox News citing the Federal Highway Administration, the Skyway was already the costliest interstate toll road in the U.S....

The City of Chicago leased the Skyway, which links the Dan Ryan to the Indiana Toll Road, to a private investment group in 2005 for 99 years and $1.83 billion dollars.

The fatter toll policy after long-term privatization continues right into the 

the Indiana tollway, too:

Study calls Indiana Toll Road lease a bad deal

The Indiana Toll Road lease may have paid off in the short term, but a new study concludes it'll be a bad deal for taxpayers in the long run.


capper said...

Sadly, it's not just Walker and his Teapublican friends. Republicrats like Boss Abele are doing the same thing. It is not only wrong to do, but people like Abele weaken your point and makes what Walker doing look OK, when they are both wrong.

Anonymous said...

Privatizing roads, parking bad for citizens? Who could possible have forseen that?