Reply #21: Additional link here

[seafan]

House plan could bring higher tolls

By LLOYD DUNKELBERGER
H-T CAPITAL BUREAU

March 22, 2007

TALLAHASSEE -- Strapped for cash to build new roads, House leaders have offered another bold -- and, some would say, risky -- plan to ease traffic jams around the state.

They want the option of leasing toll roads and bridges to private companies.

.....

It is unclear, however, whether the plan -- like the House's other big initiative, to abolish much of Florida's property tax system -- can make it through the Legislature. But the bill (HB 7033) is moving rapidly through the House and could be up for a final floor vote today.

.....

As an indication of how much money is in play, House analysts estimated the value of the Sunshine Skyway bridge across Tampa Bay at $8.2 billion based on a 50-year lease. That's far more than the toll road now brings in each year.
One industry official told a House committee earlier this year that Florida was "sitting on a gold mine" when it came to the prospect of leasing toll facilities.

But critics say the plan -- which has been used in other states -- is a dicey venture that could lead to costlier tolls for motorists. The bill would allow annual toll increases in a state where toll hikes have been relatively rare on the state road system. The Sunshine Skyway Bridge, for example, has not raised its toll since 1982, one lawmaker said.
"We're accepting a balloon payment of money upfront but we're going to tax our residents in terms of tolls," said Rep. Susan Bucher, D-West Palm Beach. "At some point, those tolls are going to get to be too much."

.....

"You're sitting on a gold mine because you have a lot of toll roads that are assets that have a tremendous capability of generating value," said Carlos Ugarte, an executive with Cintra, a Spanish company that was involved in the leasing deals in Chicago and Indiana.
Ugarte said there was no "magic" in the ability of the companies to pay high prices for the toll facilities while still being able to make a profit over the term of the lease.
It all comes down to the company's ability to raise tolls -- subject to the limits of the contract -- over the lifetime of the lease.

"The problem with tolls operated by governments is that normally there are political issues," Ugarte said.

"No one wants to raise tolls because they won't get re-elected."

This is just another way to soak the people of Florida. Republicans don't like to raise taxes/tolls, so they want to turn that nasty old decision over to their buddies instead, who will collect increasing millions/billions in tolls to turn back into the GOP coffers.

It's really that simple.


It's also very interesting that the link in the OP that referred to Speaker Marco Rubio is now inoperable. Oh, wait. Jeb now lives in Miami and he reads the Miami Herald every day. Can't have his star apprentice associated with this deal. It would be bad PR.

:sarcasm:


(emphasis added)