Published: Monday, February 28, 2011, 1:12 AM

Patriot-News Op-Ed


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Patriot-News Op-Ed


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by Robert Latham

President Obama highlighted the need to invest in transportation infrastructure this month as he announced his federal budget proposal.

As we have heard in the past, federal and state elected officials are suggesting that private sector financing holds significant promise as a transportation funding solution. The transportation construction industry agrees that a comprehensive solution should include the opportunity for private investment, but there are several things about privatization that everyone should consider and understand.

roads.jpgPennsylvania needs a comprehensive transportation funding solution.
Given the scope of the funding problem — Pennsylvania’s Transportation Commission holds our state’s funding gap for PennDOT, public transit and local roads at $3.5 billion annually — it is unrealistic to believe that market-driven private sector investment will solve the entire problem or even a significant portion of it.

As the Pennsylvania Economy League’s transportation study noted five years ago, a comprehensive solution almost certainly will include a wide variety of funding mechanisms, including increased user fees, local taxing authority and prudent use of debt as well as private investment.

Private financing options will introduce market forces into transportation services. However, there are limited projects in a few geographic areas that make market sense for the capital risk associated with privately financed projects.

The success of privately financed projects in other states underscores the public’s willingness to pay for transportation services. All private finance arrangements — whether leasing existing toll roads or building new bridges and high occupancy toll lanes — introduce a mileage fee or toll system paid by the road user.

In short,

Article source: http://feeds.stateline.org/~r/StatelineorgRss-Transportation/~3/5mpIjSgoiDo/were_still_waiting_for_pa_tran.html