When Gov. Mitch Daniels leaves office at the end of 2012, most of the $3.8 billion that he made from the lease of the Indiana Toll Road in 2006 will have been spent or spoken for, says The Associated Press. Now, to all those Daniels political foes who say that when he leaves, the state will be broke of highway money, we would only say, give us a break.
Indiana has enjoyed the benefits of millions in infrastructure improvements thanks to Major Moves, the innovative financing plan created by the Daniels administration. Without it, Indiana would have done relatively little, other than to continue to patch up the Indiana Toll Road in Northern Indiana.
The AP reported this week that Indiana will soon be as cash-strapped as other states and with few options available.
Of course, we should remember that when other states were broke and not making infrastructure improvements in recent years, Indiana was spending much of the $3.8 billion, not only building roads and making other improvements — including Interstate 69 — but creating jobs along the way. Indiana was getting the maximum value for an asset, while other states were stuck in the mud.
A point often overlooked is the Indiana Toll Road which runs across Northern Indiana was bringing the state no added value before the lease deal. Money that was made from tolls was being poured back into the toll road, just to maintain it. To those critics who now say that the foreign consortium that leased the toll road will have it for 695 years, we say good. Let them continue to maintain it.
Had Indiana not made the deal with the Spanish-Australian consortium and instead continued to maintain the toll road, none of the $3.8 billion would have been invested in Indiana's infrastructure because it would not have existed in the first place.
According to the AP story, based on a report from the Fort Wayne Journal Gazette, Will Wingfield, a spokesman for the Indiana Department of Transportation, the state had $1.7 billion in toll road money in its construction fund on Jan. 1. But all of those funds should be spoken for at the end of June 2013. In addition, there is a $527 million trust fund, but it needs legislative authority to spend it.
The future of infrastructure beyond the traditional road money wILL require more creative thinking by Indiana governors-to-be. In the meantime, don't blame Daniels now for turning that toll highway up north into a statewide asset.
And remember, as well, Indiana will eventually have an Evansville to Indianapolis interstate highway, thanks to Major Moves. Without it, I-69 would still be a nothing more than a dream.