It appears the state of Texas is closing the book on public-private partnerships, but it is not removing the bookmark.
Despite pleas from Texas Gov. Rick Perry, state lawmakers are refusing to extend the authority to enter long-term contracts with private investors after the summer. Perry, however, might re-ignite the commitment in a couple of years.
The Longhorn State has quickly turned into a market frenzy for new private toll roads. Perry made the push for the highway investment back in 2003, and over the next six years his state would lead the nation in new public-private partnership initiatives.
However, there appears to be a serious lack of education involving the public. Many are not aware of the impact of future tolls, which would come from the increased investment in public-private partnerships. Then there are those in rural Texas that really do not see the benefits of mammoth private-dollar projects sprouting up in places like Houston and Dallas. And on the steps of the state’s capitol, many lawmakers believe the best way to charge Texans is still at the pump, where the state has not increased the gas tax since 1991.
“[Private investment] has allowed the state to build out a network of roads that would not have otherwise been built,” Paul Wageman, chairman of the North Texas Tollway Authority, told the Dallas Morning News.
The need for highway investment in the state of Texas is not going away, which could bolster support for more public-private partnerships after this two-year break. Without the additional dollars, Texas will have to either return to tolls or keep borrowing billions. If the fiscal situation worsens, Perry will most likely be able to turn lawmakers back on to private toll roads if he is re-elected in 2011.
“The governor is going to keep pushing for putting this tool back in the box,” Kris Heckmann, deputy chief of staff and top transportation expert on Perry’s staff, told the Dallas Morning News. “If he had waited for the legislature to raise taxes or for Congress to send us back an even return on what we send to Washington in gas taxes, then nothing would ever get built.”
Anti-toll activists, however, will still try to persuade for an increase in the state gas tax.
