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Saturday, May 18
The Indiana Daily Student

Daniels highway plan gets first Indiana legislative hearing

INDIANAPOLIS -- Gov. Mitch Daniels' major highway plan got several plugs during its first hearing before lawmakers Tuesday, with proponents calling it a bold proposal that would create jobs and boost economic development by funding numerous road and other transportation projects.\nThe plan would allow the state to lease the Indiana Toll Road in northern Indiana to a private venture for an upfront sum the administration hopes would be $2 billion or more. That money would be used to pay for several projects around the state, and the private venture would get the toll revenue and operate the 157-mile highway.\nThe bill also would allow the state to make the planned extension of Interstate 69 from Indianapolis to Evansville a toll road and lease it. Proponents said without the overall plan, numerous projects the state has identified as priorities could be delayed for years.\nPriority projects include enhancements to U.S. 31 from Indianapolis to the northern state line above South Bend and new bridges over the Ohio River in southern Indiana.\nThe leases could last up to 99 years, but the administration envisions them being 75 years. Proposed contracts already have been shopped for the Indiana Toll Road and bids are due by Friday, but Daniels might not reveal details about any of them until next week.\nBut the bids will give lawmakers an idea of how much money they could get through such a deal. The House Ways and Means Committee planned to take more testimony on the plan Wednesday, and vote and possibly advance a plan to the full House next Tuesday.\n"We cannot have business as usual to get the greatness we demand," said Indiana Department of Transportation Commissioner Tom Sharp.\nThe administration and other proponents refer to the leasing toll options as long-term, public-private partnerships that are gaining more favor around the nation. They are part of an overall $5.3 billion proposal that Daniels, a Republican, says could create more than 100,000 jobs. Some have questioned that figure.

\nDemocrats are outnumbered in both chambers, and many have criticized the plan as one that could turn operations of state assets to private ventures that would aim for bigger profits by raising tolls higher and higher. Some also say the proposal is a new concept in Indiana and more study is needed.\n"In light of the uncertainty, my view would be to go slow," said Rep. David Orentlicher, D-Indianapolis.\nBut State Budget Director Chuck Schalliol said any private operator would have to maintain the toll roads, meet a long list of standards and accountability provisions, and pay state troopers to patrol the highways.\nThe administration plans to begin raising fees on the current Toll Road beginning this spring, and Schalliol said those new rates would be locked in until 2010. A private operator could then raise them by up to 2 percent a year, or within caps tied to other financial factors including the growth of inflation.\nHe said if the operator did not meet certain standards or make needed improvements required under the contract, "we'd get to keep the cash but take the road back"

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