For the "It's never enough" file:
INDIANAPOLIS (AP) — A state lawmaker is worried the money the state made from the leasing of the Indiana Toll Road could run out sooner than expected.
Republican Rep. Ed Soliday of Valparaiso tells the Times of Munster (http://bit.ly/op7rkh ) the state needs to find a way to cover more than $5 billion in transportation
needs. That number is growing by $800 million a year according to a Purdue University study.
[. . .]
In 2006, Gov. Mitch Daniels
Back when the toll road lease was being debated, our editorial position was that the worst thing about it was the 75-year length of the lease vs. the 10-year funding plans; that left 65 years for which we wouldn't have control of the toll road or any money from it. But in retrospect, probably the worst thing about it was the "We've just won the lottery!" attitude it projected. Hey, we've got a one-time infusion of almost $4 billion! Transportation problems solved! But sustaining and improving our infrastructure is an ongoing, incremental need best solved by an ongoing, incremental funding mechanism.
Comments
In many ways the leasing of the toll roll is like a "legacy trust." $3.8 Billion up front for 75 years leasing to a non state entity. Just like politicians every where they look at spending the $3.8 Billion over ten years. What happens between year 11 and 75? Do those cohorts get nothing but the bill for maintaining these new infrastructure projects?
Looking at basic math and using accrual accounting, the most the state should have spent in each of the 75 years was $100 million in the first year and increasing it by about 3% a year while hopefully earning 5% every year. Did they do this, no?
The local Harrison Square is a prime example as well as what Fort Wayne should do with the light lease money. Previous generations made the investment and now we as current tenants of the city have to decide what to do with it. Politicians think it should be spent. I think it should be used to pay down the cost of the storm/sewage drain separation.
But if the city decides to spend it on new infrastucture, we need to prepare ourselves with new yearly maintenance costs