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Speaker Howell Urges Free-Market Solutions to State Transportation Woes  

 

By Bob Burke

 

The 70 or so business types that gathered in a Holiday Inn Select conference room in Fredericksburg Tuesday morning didn’t appear to need a pep-talk on the power of free markets. But Bill Howell gave them one anyway.

 

During a two-hour face-off against advocates of spending billions more in state funds on transportation, the speaker of Virginia’s House of Delegates rejected any talk of raising the state’s gasoline tax. Instead, he called for more public-private partnerships, more toll roads and maybe even selling off some of the state’s major road infrastructure to raise money.

 

Government needs to question “what it does, why it does it and how it does it,” Howell said. “History has demonstrated time and time again that market forces work” in key infrastructure, such as telecommunications. “Why not highways, bridges and tunnels? I want to make free markets in general, and public-private partnerships in particular, a much bigger part of Virginia’s transportation future.”

 

Hanging over Howell’s words, though, is the fight for control of the GOP caucus. After last session’s $1.4 billion tax vote, anti-tax challengers vowed to unseat Republicans who backed the deal. But they failed: only one House GOP incumbent lost in yesterday’s primaries.

 

Now the weakened anti-tax movement faces an uphill battle to counter State Sen. John Chichester, the powerful chairman of the Senate Finance Committee and a supporter of increased state transportation funding.

 

The forum was hosted by the Fredericksburg Regional Chamber of Commerce, which covers Howell’s home turf in Stafford County. The group gave Howell a polite hearing, but openly supported Howell’s two opponents, Bob Chase, president of the Northern Virginia Transportation Alliance, and Steve Haner, vice president for public policy at the Virginia Chamber of Commerce.

 

At one point Howell rhetorically asked the audience members, do you really think low- to moderate-income workers can afford a higher gas tax? “YES,” came a voice from the back of the room, to scattered laughter. “Who said that?” Howell asked. “Come on, be brave.”

 

Howell pressed on, describing other transportation projects around the country that have been turned over to the private sector. Last year Chicago signed a $1.8 billion deal to privatize the Chicago Skyway, an eight-mile toll road. Indiana is thinking of selling the Indiana Turnpike. In Texas, state officials have signed a deal with a Spanish firm that will invest $6 billion in private funds to build a part of the Trans-Texas Corridor and give the state a $1.2 billion franchise fee. “Imagine what we could do with that money,” Howell said.

 

What’s more, Howell said an investment banker told him that properties such as the Dulles Toll Road or the Chesapeake Bay Bridge-Tunnel could be sold quickly to investors. “We could do a deal like that in six months if we had the will and the mind to do it.”

 

After hearing Howell’s pitch, though, Haner just shook his head. Private companies are willing to invest in road projects because they expect to get the money back in higher tolls, he said. “[Howell] talks about these public-private partnerships as if the money falls out of the sky,” Haner said. “These tolls are going to kill people.”

 

Haner and Chase argued that the state is in a transportation-funding crisis that threatens its economic health.

 

Chase touted estimates that the state is “conservatively” about $3 billion short a year on transportation funding and said Howell’s approach would provide for only 10 percent to 20 percent.   Both men repeated their support for raising the state’s gas tax, which hasn’t gone up since 1986, despite inflation and a 79 percent increase in the number of vehicle miles traveled. They also pleaded for support from the gathered business people. “It’s a numbers game,” Chase said. “Elected officials count heads.”

 

Chase also countered opponents of a gas tax hike, saying that drivers have already absorbed a $1 increase in gas prices in the past three years. With gas prices dropping, drivers would accept a 25-cent per gallon tax increase if it meant better roads, he says. “Sitting in traffic is a tax, and you get nothing in return for that except stress and frustration.”

 

Howell said that two private proposals to built HOT lanes down Interstate 95 in Northern Virginia sat unexamined for nine months because VDOT didn’t have the staff to review them. “That’s outrageous,” he said. “We need to make approving PPTA proposals a higher priority.”

 

There were still skeptics. “I happen to agree with practically everything Bill Howell said,” said Charles McDaniel, chairman of the nearby Hilldrup Moving and Storage. “But I think if you did everything Bill Howell said, it’s still not going to be enough.”

 

Howell, though, urged patience. “It’s going to take time, it’s going to take money, and it’s going to take serious reform,” he said. “All of us must be open to new ideas.”

 

Bacon's Rebellion News Service

June 14, 2005

 

 

 

 

 

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