59°Lease opponents fear higher tolls on turnpike
Jul 04
2011
Leasing Ohio's busy toll road that links the East Coast with the Midwest has the potential to bring billions of dollars to the cash-strapped state. It also could bring higher tolls and drive more traffic onto routes that meander through small towns, opponents say.
The governor wants to lease the Ohio Turnpike to a private operator, following the lead of a handful of states and cities that have pocketed cash for their toll roads in recent years. Governments strapped by the Great Recession also are turning to selling off and leasing office towers, warehouses and prisons.
"We can get a big chunk of money that can be used to improve our infrastructure in the state," Ohio Gov. John Kasich said Friday during a news conference. "Indiana did it. Indiana made a lot of progress."
Neighboring Indiana last week marked the five-year anniversary of its $3.8 billion lease of the Indiana Toll Road to foreign investors. The state has spent much of the money on highway projects and put $500 million into an investment fund for future road construction.
Chicago leased an 8-mile highway for nearly $2 billion five years ago, and an Australian company bought a 99-year lease on Pocahontas Parkway in Virginia. But a plan to lease the Pennsylvania Turnpike fell through in recent years, in part because of fierce opposition from state and federal lawmakers.
Ohio's new budget allows the state to lease nearly all of Interstate 80, which carries about 50 million vehicles each year across northern Ohio from Pennsylvania to Indiana. It also gives the state's legislature some control over any potential deals after concerns were raised about whether a new owner would take care of the highway.
Much of the resistance is being led by officials from Ohio counties along the 241-mile turnpike, which is funded through tolls and the sale of gas and food at rest stops.
"It's a terribly unfair deal for northern Ohioans who have largely paid for the turnpike over the years," said Tim Brown, a commissioner in Wood County, just south of Toledo. "It's no different than a tax increase for us."
Among the main concerns is that tolls are almost certain to go up if a private operator takes over.
Tolls have nearly doubled since investors took over the Indiana Toll Road. A 10 percent increase took effect on Friday, bringing the price to cross the northern half of the state to $9 for most cars.
County officials in Ohio want to make sure there would be limits on future toll increases if the state's toll road is leased. It's now $15 for cars making a full trip. The turnpike collected a record $236 million from motorists last year.
By comparison, Pennsylvania charges $32 to travel all 357 miles on its turnpike.
Kasich, a Republican, views the Ohio Turnpike as an asset that has potential to bring more revenue at a time when the state just completed a series of spending cuts to fill an estimated $6 billion budget hole.
He thinks the state could get at least $2.5 billion in leasing it and has said the money would pay for work on roads, bridges and harbors without raising taxes.
No deals are in the works yet. Kasich officials have said they envision a 30-year lease with an initial payment and a piece of annual toll revenues.
Still, there are many more details to work out.
A five-county planning body in northeast Ohio wants most of the money to go toward projects in northern Ohio, where the turnpike money is generated. It also wants to make sure there are guarantees that a private operator will keep up with highway maintenance.
The concern is that if the road becomes too costly or goes downhill, businesses that rely on the route might relocate or it will be tougher to attract new companies.
"There's a cost to the communities that are along the turnpike," said Stephen Hambley, a Medina County commissioner who heads the planning body in northeast Ohio. "We've been paying for it since the '50s. We feel we're a majority stockholder."
That's why state Sen. Mark Wagner, a Republican from Toledo, inserted a provision to Ohio's state budget giving lawmakers oversight of any lease deals.
"We owe it to northern Ohio to do it in a responsible way," he said.
Another worry is that truck traffic will move to secondary roads and clog up the small towns along the way. That's what happened when an 82 percent rate increase took full effect in 1999. The state responded by lowering tolls and increasing speeds for truckers.
More toll hikes if the turnpike is leased will likely push a lot more tractor-trailers onto other roads, said Joe Jones, a long-haul truck driver from Charlotte, N.C.
He went out of his way to avoid the turnpike's toll booths while hauling machinery from upstate New York to Chicago on Friday.
"It puts another 60 miles on the trip, but I hate paying tolls," he said while refueling at a truck stop just outside Toledo.
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02:50 AM
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12:26 AM
Don S says
The Indiana Toll Road sold to a private company 5yrs ago. It looks as if no maintenance has been done on it for 20yrs. It is the worst road in the interstate system. Ike is turning over in his grave, now. No car or RV can travel in the right hand lane, without being shaken to peices. This summer I went 600 miles out of my way, so that I didn't have to drive through Chicago and over the Indiana Toll Road, to get to Ohio. It will save more money, in repairs to my RV, by taking this long way around. I'm sure many trucking companies see it the same way that I do. So Ohio, don't sell out your Turnpike. Right now, it is one of the best roads in the USA. If you want an example of how the Turnpike will look in the future, just look at Indiana's Toll Road.
10:08 AM
Kimo says
As per INDOT’s agreement with the Indiana Toll Road Concession Co., the roadway’s private manager, plows are supposed to be out clearing snow when one-and-a-half inches of the stuff has accumulated “and they were,"
09:48 AM
Kimo says
Re:why does turnpike workers make 17% more than their ODOT counterparts
I have not seen the latest contracts.
Unless they have changed, the one clause that put the turnpike employees on stricter terms was the mandatory overtime clause.
Turnpike: Habitual failure to report for overtime resulted in termination.
ODOT: Fail to report for overtime, (don’t answer the phone), go to the bottom of the overtime list.
When an agency goes to the overtime list, it’s because they need people, the roads need to be made safe for travel.
When you are on the call list, and the agency owns your ssa, you deserve more money.
09:34 AM
Kimo says
We can post all we want, it's a done deal.
For the short term you get a check for a lease.
That check is generated by using cheap labor and cutting maintenance.
The company holding the lease is not in the game to lose money.
At the end of the lease, Kasich is working for one of the people he took "care of" and the State gets back a poorly paid work force and a poorly maintained road.
Kasich and his campaign contributors win the State of Ohio loses.
06:18 PM
Marcus M says
I think its great when working people make decent money, but why does turnpike workers make 17% more than their ODOT counterparts, who by the way are very paid, answer to keep the self serving bureaucracy going. If it really is about serving northern Ohio, make it toll free now and even more traffic will use it and serve this region. The problem is what is it serving, much of industrial base has left thanks to the unions, It can service more water parks and their minimum wage jobs.
03:36 PM
kelliandnate says
All Kasich wants to do is pay off his corporate buddies. He has no vested interest in the state of Ohio. If he did, he would not be doing the things he is currently doing. He is only harming Ohio. He is not helping us.
03:08 PM
Marcaurelius says
Why do you complain if working people should make halfway decent money? Why should the Ohio Turnpike be turned over to a private monopoly?
02:21 PM
Marcus M says
And now the rest of the story;
Elkhart's Johnson St.: See the dramatic transformation >>
Indiana Toll Road snow removal passes muster, but mishaps up
Thursday March 17, 2011When it snows, the private company managing the Indiana Toll Road is supposed to jump into action, and it apparently passed muster during at least two storms this winter.
The Indiana Department of Transportation hired a consultant to review maintenance of the interstate during storms of Jan. 11-12 and on Feb. 25, according to Clark Snyder, INDOT’s director of toll road oversight. As per INDOT’s agreement with the Indiana Toll Road Concession Co., the roadway’s private manager, plows are supposed to be out clearing snow when one-and-a-half inches of the stuff has accumulated “and they were," he said.
Likewise, ITRCC met other pertinent requirements, notably that it:
- Make an initial pass through road sections with snow accumulation of at least one-and-a-half inches within an hour of reaching the threshold.
- Get snow-covered roadways back down to bare pavement within four hours of a storm’s conclusion.
- Get snow-covered shoulders back down to bare pavement within eight hours of a storm’s finish.
Accidents, safetySnyder, speaking Wednesday at the quarterly meeting of the Indiana Toll Road Oversight Board in Granger, also reported that auto mishaps along the toll road spiked to 773 in 2010, up 39.3 percent from 555 in 2009. That parallels a similar jump in accidents on highways all across Indiana, which he thinks stems from increased roadway volumes and more severe weather.
Of the 2010 toll road total, 674 involved only car and property damage, 96 involved injuries and three were fatal accidents.
A couple other accident stats:
As you note the higher accident rate is statewide not just the Indiana Toll Road, the toll road is one of the safest interstates in India ranking 12 out of 13.
12:08 PM
jdima43558 says
The Ohio Turnpike is a major asset of northern ohio counties and needs to stay as it is. Owned by the state and managed by the state. If they want the money for infrastructure they can raise the tolls and use them for only that purpose. However the Republicians wants to sell all the assets of the state for short term financial gain and to lower state employment ranks. Over the last five years the Indiana Toll road has deteriated and the snow removal is 25% what it was when the state owned it. There were more deaths on the Indiana Toll Road due to lack of snow removal.
11:35 AM
Centauri says
http://www.ohioturnpike.org/about/annual_reports/
How can leasing the turnpike be a wise decision? I view the tolls of the turnpike as being a user tax to many out of state travelers. Private companies exist to make a profits. Private companies cut costs and raise prices to ensure a profit. No doubt that the tolls will rise and services such as maintenance and snow removal can or will be cut to ensure that profit.
What will be the real cost in the future if the turnpike is leased? If tolls rise, will truckers use alternative roads that will cause those roads to require more public money for repair and maintenance? How much of the toll money will go towards the high salaries of private company officials and share holders of the company that will lease the turnpike? I cannot see leasing the turnpike as being a good idea for Ohio.
10:48 AM
Marcus M says
The original intent when the turnpike was created in the late 1940's was for the road to be toll free after the original bonds were paid off. The turnpike commission became a self serving bureaucracy and kept in self in debt to continue its exists allowed by both political parties. The average turnpike employee (excluding the toll takers @ $19.00 an hour who has no ODOT counterpart) makes 17% more than ODOT employees. Lease it with oversight for maintenance, reduce the inflated salaries and make them in line with ODOT and after the lease expires return it to toll free as was the original intent.
10:38 AM
SimpleEnough says
I have a hard time following your thought process as the road can't support itself with out tolls. I'm against leasing it, I'd like to know how much the turnpike is saving by having the EPASS, how much does it cost for the 3rd party to operate, maintain, etc. instead of the toll booth operators and how often is this ssytem up for competative bid for the contract? I say keep it the way it is.
10:37 AM
bayshore says
It's time for Columbus, Dayton and Cincinnati to share in paying to travel the interstates. Put tolls on I-75, I-77, I-70 and forget about leasing or selling the turnpike.
10:16 AM
beachdog says
How many people here are old enough to remember THIS 'fact'? The Ohio Turnpike was supposed to go toll free 20 years ago after it was built?! When it was started, the promise was made that we would pay tolls until the turnpike could support itself. Pfft, we all knew then it would never happen and now the idiot in Columbus wants to give IT away too?
10:05 AM
Amerian Dad says
And the hits just keep on coming. Got to love when the taxpayers take the hit for our Politician's inability to manage the State's monies..... Keep selling and/or leasing to foreign investors.....won't be long and we'll be having to speak a different language; that of our "new" leaders.