PUBLIC-PRIVATE PARTNERSHIPS

President-elect Barack Obama Friday is to name retiring Illinois Congressman Ray LaHood the next U.S. Department of Transportation Secretary. Though he has served on the House Transportation Committee, moderate Republican LaHood’s upside is his well established role as a bipartisan diplomat with close ties to Obama’s Chief of Staff Rahm Emanuel, as the Chicago Tribune reports. He’ll need to use well the relationships he’s built in seven congressional terms. The surface transportation landscape poses big challenges and real opportunities for establishing a new way of doing business. This article about LaHood’s appointment, from the New York Times, highlights several important menu items. Mr. LaHood…has overseen major spending projects as a member of the House Appropriations Committee….The next transportation secretary will Read More ›

Transportation public-private partnerships should not be used to plug holes in a government budget. The proceeds should be directed to transportation capital investments. But the Chicago Tribune reports that under a new agreement starting January 1, the City of Chicago will lease for 75 years its 36,161 metered parking spaces to a Morgan Stanley partnership for $1.1 billion, with the proceeds going, variously: to patch the city budget through 2012; to a special fund to offset city revenue shortfalls tied to the economic downturn; to a special reserve fund; and to city programs for low-income individuals. I won’t say this sort of, ah, creative attempt to breach city fiscal gaps smells exactly like the thousands of dead alewives that used Read More ›

The Washington Post paints an accurate picture of the surface transportation funding and financing crisis that will confront President-elect Barack Obama (below at right), Congress, and Obama’s pick to head the U.S. Department of Transportation. As roads and bridges are crumbling and cracking and transit systems struggling with rising costs and ridership, the U.S. Highway Trust Fund is in bad repair itself. Headed for bankruptcy and saved last fall only by an $8 billion raid of the U.S. Treasury’s General Fund, this highway and transit account dates to 1956 and relies on a federal gas tax that hasn’t been raised from the current level of 18.4 cents per gallon for 15 years. A high-profile federal commission has urged the tax Read More ›

I had a telling conversation with an old friend several months ago, a devoted environmentalist who’s a community college biology teacher living south of San Francisco in a pleasant small town abutting the Pacific. I don’t recall how it came up, but she declared, “We’ve just got to get more people out of their cars.” Then came a pregnant pause, followed by her admission that of course, because of where they lived and worked and their packed daily schedules, she and her husband drove themselves and their children everywhere. I’ve been thinking about this lately because, well, the roads are still chock full of cars and trucks, and despite an uptick in transit and bicycle use, traffic is still congested Read More ›

“We must respond to the reality that the gas tax, the traditional source of revenue for transportation investments at both the state and federal level, is not expected to keep pace with transportation needs in the future.”  With these words, New York Transportation Commissioner Astrid C. Glynn ( pictured below, right) welcomed participants to a  New York State DOT-sponsored symposium, “Beyond the Gas Tax: Funding Future Transportation Needs.” We moderated a panel on “Options Beyond the Gas Tax.” An edited text of our remarks follows.  * * *       A modest boost in the federal gas tax – and only a modest increase has a chance of passing muster with the congressional tax writing committees and obtaining a filibuster-proof majority support in the Senate – Read More ›

The need for public-private partnerships to help rebuild the nation’s overburdened and underfunded surface transportation network is growing. Even before gas prices spiked and gas tax hike prospects dived, the Washington State Transportation Commission was calling for P3s. They did so in this January 2007 report, and then again here. The January, 2007 report states that P3s should be closely examined as a potential strategy for completing planned major projects including the SR 520 floating bridge replacement, I-5 Columbia River Crossing, the State Route 167 extension to the Port of Tacoma, I-90 Snoqualmie Pass improvements, the State Route 704 Cross-base Highway in Pierce County, improvements to the state ferry system’s busiest dock, in downtown Seattle, Colman Dock, and for other Read More ›

Funding infrastructure with private capital, a practice widely used abroad, has had its tentative beginnings here at home, but its domestic long-term future is still clouded. We interviewed a diverse group of individuals of varying political persuasion, on public-private partnerships in U.S. surface transportation. They included state legislators, congressional staffers, senior U.S. DOT officials, state and local transportation officials, members of the two congressionally-chartered transportation commissions,  executives of trade and professional associations, and analysts on Wall Street, in think tanks, academia and private consulting firms.   Support for Public-Private Partnerships is Growing Total reliance on public resources and the fuel tax to fund future investments in transportation infrastructure is no longer a realistic option. Such, in essence, is the considered judgment of a great majority of participants in our survey. State officials Read More ›

Time To Bite The P3 Bullet In The Olympian, Adam Wilson reports Washington state officials are bracing for a widening gap of $95 million between expected and actual gas tax revenues through June 2009, as sharply higher gas prices constrict the volume of fuel purchased at the pump. The renewed transportation revenue concerns are indicative of a larger, long-term challenge that’s also felt due to the nearly bankrupt federal gas tax trust fund and the shifting landscape in infrastructure. …construction costs increased by 60 percent in five years, as demand in India and China drove up prices for steel and concrete, and the cost of diesel fuel for construction equipment soared. In Washington, as elsewhere, some planned road and bridge Read More ›