BY PATRICK GUINANE, Times of Northwest Indiana
pguinane@nwitimes.com
INDIANAPOLIS | Central and southern Indiana roads would see two-thirds of the profits from a proposed lease of the Indiana Toll Road, according to new details of the plan released Tuesday.
News that northern Indiana would receive just 34 percent of the proceeds struck a nerve with local lawmakers already hesitant to grant Republican Gov. Mitch Daniels the permission he needs to strike a deal with a private firm.
"Is that all?"asked Rep. Duane Cheney, D-Portage.
"This is the first time I heard that it wasn't all going to be spent here."
The toll road lease is expected to bring the state at least $2 billion in upfront cash. In exchange, a private, possibly foreign, firm would operate the 157-mile roadway for several decades and collect the tolls. For commuters, those tolls will nearly double later this year.
In exchange, Daniels has offered the region about $1 billion over 10 years, including $100 million for the Regional Development Authority, $100 million in local grants and $344 million for transportation upgrades along the toll road corridor.
The 34 percent promise, which was spelled out in legislation filed Tuesday, didn't sit well with Northwest Indiana legislators.
"It appears that there is no equity in it," Rep. Chet Dobis, D-Merrillville, said.
Local lawmakers have expressed opposition to any lease deal that subsidizes downstate road construction. But Dobis suggested the initial discussion may have been obscured by Daniels' $1 billion promise.
"It sounds like a nice carrot, but this stuff has to be explained a little bit," he said.
"It's a major move to try to get this legislation through in a short session. I think it will be difficult at best."
No region would benefit more from a lease deal than the seven counties along the toll road, countered Rep. Randy Borror, the Fort Wayne Republican who is carrying the governor's lease legislation.
"There are concerns about the bill, as we all know," Borror said.
The plan also could require votes from both sides of the aisle. Last year, Dobis was instrumental in striking a deal that provided financing for a new Indianapolis Colts stadium and earmarked state funding for the RDA. Some observers predict that Daniels' toll road plan will flounder without similar bipartisan support.
"He cannot pass this (toll road lease) bill without Democratic support. Absolutely not," said Sen. Karen Tallian, D-Ogden Dunes. Tallian has filed legislation to block the governor from leasing the toll road to any private firm. Tallian, however, said she realizes her legislation is unlikely to go far, given that she is a rookie senator serving in the minority party.
The toll read lease is the linchpin needed to fund most of the new construction in Major Moves, Daniels' 10-year, $10.6 billion transportation plan. Bids for the proposed lease are due next week.