State official gives honest, but unpopular, answers
Northwest Indiana elected officials on Thursday swallowed the hard truth that much of the $3.8 billion from the Indiana Toll Road lease is already winding its way southward, paying for major highway projects around the state.
Indiana Commissioner of Transportation Karl Browning told a meeting of the Northwestern Indiana Regional Planning Commission that the Interstate 69 expansion, from Evansville to Crane, and the Hoosier Heartland, from Lafayette to Logansport, have been made possible by the Toll Road lease.
With respective price tags of $700 million and $450 million, those are two of the biggest ticket items in the Major Moves inventory. Before the Toll Road lease was born, state officials said those projects could not be funded.
"I hear as I go throughout this state that we have this great big bucket of money and should be sharing it otherwise than we are," Browning said.
But Major Moves represents a firm commitment of where and how $12 billion in highway funds will be spent, including in Northwest Indiana, said Browning, with the aid of graphics showing just how Major Moves money is spent.
Browning's response on the Hoosier Heartland and I-69 projects came in response to questions from Lake County Commissioner Gerry Scheub and Porter County Commissioner Robert Harper.
NIRPC is made up of 51 representatives from local governments across Northwest Indiana.
Browning gave frank answers Thursday. At one point he told his listeners they could object if they wanted, but he was still going to tick off the benefits of the Toll Road lease.
Those include private operator ITR Concession Co.'s $40 million investment in electronic tolling and $250 million in roadway improvements, both of which are still underway.
Elected officials wanted to know about current issues with the Toll Road and its private operator.
"If you're not paying prevailing wage on the Toll Road ... what good is it to local communities?" asked LaPorte County Council member Jerry Cooley.
ITR Concession is currently in discussions with labor unions about the prevailing wage issue, Browning said. However, he noted the Toll Road's operator does not fall under the same regulations as the state when it comes to wages.
"Our agreement with the Toll Road doesn't let us say, 'This is what you must do,' " Browning said.
Highland Town Clerk-Treasurer Michael Griffin wanted to know how long the state will continue to pay for the commuter discount on the Indiana Toll Road given to those using electronic tolling.
Browning said that could go on for up to 10 years, and technically those payments to ITR Concession Co. are made by the Indiana Finance Authority. State officials have estimated it could cost $250 million, which will come out of lease proceeds.
The commissioner also clarified that although the Cintra-Macquarie consortium paid $3.8 billion for the 75-year lease, only about $2.6 billion went to Major Moves because of set-asides like that for the toll discount
Posted in Local on Friday, September 21, 2007 12:00 am Updated: 10:28 pm.
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