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BY PATRICK GUINANE
pguinane@nwitimes.com
317.637.9078 | Thursday, February 02, 2006 | (No comments posted.)
INDIANAPOLIS | The state House approved a 75-year lease of the Indiana Toll Road Wednesday, casting a 52-47 party-line vote that ended four hours of meandering debate.
"I knew the outcome before the day started," Rep. Bob Kuzman, D-Crown Point, said afterward.
More than 30 lawmakers spoke for or against the measure. But the speeches, some impassioned, others glib, did nothing to alter a foregone conclusion.
"That is the longest single debate I've witnessed in my 20 years here," said House Speaker Brian Bosma, R-Indianapolis, whose GOP members supported the bill. Bosma tried to close the debate after two hours, but Democrats protested.
There was one brief interruption, as the House paused to hear from former NBA player Kurt Rambis. The Hoosier native is an assistant coach with the Los Angeles Lakers, who were in town to play the Indianapolis Pacers.
That was about the only surprise Wednesday. Republicans had sewn up their support a day earlier, adding a 10-year toll freeze for motorists who live near the Toll Road and promising $100 million for economic development in Elkhart, LaGrange and Steuben counties.
"You know, there’s nobody I admire more, frankly, than an officeholder who is willing to do what is right even if it’s not clear that it is popular at the moment," Daniels said later. "Sometimes the course of statesmanship is to do decisively what is right, and then help one’s fellow citizens to understand why you did it."
No Democrats voted for House Bill 1008, which now moves to the Senate. Gov. Mitch Daniels needs both chambers to sign off before he can collect the $3.85 billion that Cintra-Macquarie, a Spanish-Australian consortium, has offered for the right to run the 157-mile Toll Road and collect tolls from July 1, 2006, until June 30, 2081.
"This whole issue is about jobs and jobs in Northwest Indiana," Ralph Ayres, R-Chesterton said.
"This is about the Northwest Indiana economy. This is about well-paying jobs."
Lake and Porter counties alone should see 7,000 to 8,000 new construction jobs, said Ayres, who also mentioned an endorsement from the Northwest Indiana Building and Construction Trades Council.
Three busloads of union workers from Northwest Indiana were in Indianapolis Tuesday to rally support for Major Moves, the governor's 10-year, $10.6 billion transportation plan.
The Toll Road lease would fund more than half the new road construction in Major Moves, including $859 million to build a tollway extension of Interstate 69 between Indianapolis and Evansville.
A third of the lease proceeds, or $1.35 billion, is earmarked for Lake, Porter and the five remaining counties that surround the Toll Road.
Despite those promises, Rep. Vernon Smith, D-Gary, said the lease is not a good deal for the region.
"I'm just so surprised that people from Northwest Indiana -- the Ralph Ayres of the world, the Mary Budaks (R-LaPorte) -- I just can't see them voting for this.
"That's what surprised me," Smith said.
Listen to the Governor's remarks
Governor Daniels from the State House Wednesday commented on the passage of HB 1008 in the Indiana House of Representatives.
What's next?
Some lawmakers hope for greater deliberation by the Senate, which will have about a month to consider the lease legislation. The General Assembly is set to adjourn March 14. The $3.85 billion offer from Cintra-Macquarie expires a month later.
Major Maneuvering
House Republicans made these changes to the governor’s plan to lease the Indiana Toll Road.
* 10-year toll freeze: Residents of Lake, Porter, LaPorte, St. Joseph, Elkhart, LaGrange and Steuben counties won’t pay higher tolls until 2016. Motorists from the rest of the state and outside Indiana will see tolls nearly double in April.
The discount will be given through electronic toll transponders similar to the I-Pass system in Illinois. Electronic tolling could take a year to install. During that time, commuters in the seven-county area would have to pay the higher tolls and but could deduct them from state income taxes.
Cost: $150 million
* Northeast Indiana Regional Development Authority: Elkhart, LaGrange and Steuben counties would get the same economic development tool Lake and Porter counties received last year.
Cost $100 million (over 10 years)
Both the toll freeze and the Northeast RDA would be funded by the $1.35 billion in lease profits earmarked for the seven counties surrounding the Toll Road. Here’s where the rest of the $1.35 billion would go:
* $583 million for state road construction projects in the seven-county area
* $225 million to repay current Toll Road bond holders and cover lease financing/legal fees
* $100 million for the Northwest Indiana Regional Development Agency
* $100 million for local government requests for transportation projects
* $41 million not yet earmarked
And the other $2.5 billion from the $3.85 lease bid
* $150 million for local transportation projects statewide, including about $3 million for Lake and Porter counties
* $2.35 billion for statewide transportation projects, including $859 million to build an Interstate 69 tollway connecting Indianapolis and Evansville and $119.7 million for projects in the seven counties surrounding the northern Toll Road.
* Another $800 million in interest could be generated while the $2.5 billion gradually is spent over 10 years, the administration estimates.
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