Supreme Court clears 'Major Moves'

The state's plan to lease the Indiana Toll Road to foreign investors cleared its last hurdle Tuesday when the state Supreme Court unanimously rejected arguments that the law allowing the lease is unconstitutional.\nThe justices, in upholding a St. Joseph County court ruling, said "no substantial issue is raised by the plaintiffs' three contentions" that the law to lease the road for $3.8 billion to a private, foreign company is unconstitutional. The 4-0 ruling from justices in Indianapolis also said the case is a public lawsuit -- meaning the challengers would have to post a $1.9 billion bond to continue the court fight.\nPlaintiff Steve Bonney said Tuesday that his group probably could not raise that much money and does not know what the next move will be.\n"We'll have to figure out whether we have any options other than posting that," he said. "But because we've lost the case, the bond is rather irrelevant at this point."\nDave Menzer, campaign organizer for Citizens Action Coalition, which, along with seven individuals, sued to stop the lease, said his organization will be unable to continue its legal battle.\n"This really is the end of the line for this litigation," he said. "What's happened here is that the public has been ignored and they're being shortchanged. This deal mortgages the state's future and makes a few wealthy deal makers even wealthier."\nThe lease is a cornerstone of Gov. Mitch Daniel's "Major Moves" plan that aims to raise billions of dollars for state highway projects. An Australian-Spanish consortium has agreed to pay $3.8 billion up front, which will help pay for numerous projects, the state has said. The private companies would operate the road and collect its revenue for 75 years.\nDaniels was in Japan on Tuesday and not immediately available for comment. Mark Massa, Daniels' general counsel, said the ruling clears the way for the state to finalize the deal.\n"This is the right outcome, and the best one for the long-term future of our state," he said.\nHe expects attorneys for the Indiana Finance Authority, which runs the toll road, to ask a judge to dismiss a second lawsuit against the lease in Brown County, citing the high court ruling. The administration is working toward a June 28 closing date for completing the deal, he said.\nThe Supreme Court, which heard oral arguments in the case a week earlier, also rejected plaintiffs' claims that the law amounted to special legislation because it gives more funding to counties the toll road crosses than to others. It said in the ruling -- written by Justice Theodore Boehm -- that the appropriation is a legislative function "unusually unsuitable to judicial review."\n"The 'Major Moves' legislation that includes allocation of lease proceeds for construction projects throughout the state does not become special legislation because it also makes lump sum allocations to seven Indiana counties," the decision reads.\nThe ruling upholds a May 26 decision by St. Joseph Superior Court Judge Michael Scopelitis that the case is a public lawsuit. Under Indiana law, public lawsuits are defined as challenges to the construction, financing or leasing of public improvements by a municipal corporation.\nThe law's aim is to prevent people from suing to slow or prevent public projects.\nThe plaintiffs contended that the case should not be public because the Indiana Finance Authority is not a municipal corporation and that the statute applies only to acquiring a public improvement, not the "disposition" of it.\nBut the high court ruled the authority is a municipal corporation and the public lawsuit statute applies.\nFour of five justices heard oral arguments and ruled on the lease because Justice Brent Dickson removed himself from the case without stating a reason.