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The Crosscut Blog »

Nov 8, 2007 1:00 PM | last updated Nov 8, 2007 11:58 AM
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How to fund transportation without raising taxes

By Knute Berger

David Brewster makes a good catch on the "private entities" reference in Gov. Christine Gregoire's comments on life after Prop 1. In talking with both House Speaker Frank Chopp and King County Executive Ron Sims, they have both assured that they are opposed to privatization of road projects — and Chopp was the hero of anti-privatizers on the new Tacoma Narrows Bridge project. But many regional transportation wonks aren't convinced Public Private Partnerships (PPPs) are a bad idea.

Some concepts avoid total privatization and settle for semi-privatization with their financing, such as partially funding projects with building trades or union pension funds. That's been floated as how to fund a new downtown tunnel concept by Cascadia's Bruce Agnew and has been pushed nationally by former Democratic congressman and presidential candidate Dick Gephardt in his role as a consultant for Goldman Sachs. The failure of Prop 1 puts tolls and congestion pricing forward on the agenda after they've mostly been lurking in the backrooms.

Increasingly, tolls and privatization go hand in hand. In Pugetopolis, privatization may offer a way around the tax limits of I-960. Many regions and states are avoiding "raising taxes" by allowing private contractors and toll road operators to set and collect fees. Outsourcing tolling is a way Dino Rossi and the pro-road crowd could reduce congestion without raising taxes. Build private tollways or HOT lanes that allow commuters to pay higher fees to avoid congestion, and fund the projects with private dollars. The state and counties would take a piece of the action to fund transit or other transportation projects. That way, you avoid taking the tax-hike political hit and dodge the I-960 red tape. Roads get build where suburban commuters want them--and can afford to pay the price out of their own pockets.

This could be an effective tactic in partially funding an expanded Highway 520, widely regarded as a driveway for Microsoft: make one of the new lanes a private toll lane and let the Microsofties who want to drive pay for "their" bridge.

  • Knute Berger is Mossback, Crosscut's chief Northwest native. He also writes the monthly Gray Matters column for Seattle magazine and is a weekly Friday guest on Weekday on KUOW-FM (94.9). You can e-mail him at mossback@crosscut.com.
Comments
HOT lanes will price out like houses
Report a violationPosted by: Aaron Pailthorp on Nov 8, 2007 2:44 PM
So called HOT lanes that the pro-roads folks imagine as flowing at 50-60 MPH for all buses and those wealthy enough to pay will soon price out just like the housing market has here. It won't be possible to charge enough to avoid the pre-open-house multiple-no-inspection offer-over-listing-price economics we currently see in housing.
RE: HOT lanes will price out like houses
Report a violationPosted by: Carless in Seattle on Nov 8, 2007 3:29 PM
Usage of dynamically priced HOT lanes in southern California has shown that wealth is only one of many factors in why people choose to pay to take an HOT lane. Poorer drivers use the so-called Lexus Lanes quite regularly, while those who could easily afford to pay often don't use them. It's more a question of whether you've got someplace you have to be at a specific time.
How to fund transportation without raising taxes
Report a violationPosted by: ratcityreprobate on Nov 8, 2007 2:58 PM
Heck, let Kemper double deck I-405 with Lexus Lanes all exiting into Bellvue Square.
Precedent
Report a violationPosted by: Piper Scott on Nov 8, 2007 3:47 PM
Crosscut WriterI think it was Tacoma's Doug Tooley who first made mention of the Drew Carey video on Southern California private highways produced for Reason.org.

Why must the government hold an unbreakable monopoly on transportation options? In fact, sounds like the state, region, counties, and cities could all stand a little competitive shake-up.

Here's Carey's video: http://reason.tv/video/show/6.html

Time to think genuinely out of the box rather than pretend to do so.

The Piper
Fine. It Might Work in Some Places
Report a violationPosted by: Tarl on Nov 9, 2007 4:36 PM
But privatization won't work on the 520. There may be some other applications in other places that might make sense. Here's the deal: most of these deals involve generational payments like the gameplan that killed the monorai. You get something, but you pay for it forever. And one reason you pay forever is to take care of the profit involved.

I'm with Frank Chopp on this stuff. Its a bad deal overall and a republican no taxes answer to a big problem and won't work everywhere. So show me a place where it will work, and in what form, and you are on. Won't work on 520.
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