Perry breaks state law, fails to report stimulus money

Link to article here.

Perry accepted $2 billion in stimulus money for road projects, 70% of which was slated to go to toll projects in a massive TRIPLE TAX scheme (gas tax, federal taxes to pay for stimulus, then another toll tax to use the road). It’s inexplicable that anyone would call this man a “fiscal conservative.”

Perry ducked state law on disclosing some stimulus money
Spending report was not posted on Web site as required.
By Laylan Copelin
AMERICAN-STATESMAN STAFF
Published: 9:39 p.m. Tuesday, April 13, 2010
Gov. Rick Perry has always publicly stiff-armed federal stimulus dollars, even as he accepted billions to balance the state budget and tens of millions that he could award to constituents.

He even ignored state law and his own executive order that require all state agencies and institutions of higher education to be “accountable and transparent” by posting their stimulus spending reports on their Web sites.

Until Tuesday, that is.

After a reporter’s inquiry, the Governor’s Criminal Justice Division began posting reports, some of them months old, on its Web site. Perry’s spokeswoman, Katherine Cesinger, would not elaborate on why the governor chose not to follow the law that he expected other state officials to follow.

State Rep. Jim Dunnam, D-Waco , who leads the House committee overseeing federal stimulus programs in Texas, said Tuesday that he isn’t surprised by the governor’s actions.

“Unfortunately, it’s a pattern of the governor publicly distancing himself from the federal stimulus while accepting the majority of the money,” Dunnam said. “They took $16 billion, and most Texans think they haven’t taken any of it.”

Last year, Perry accepted about $16 billion in federal stimulus money so lawmakers could avoid deep budget cuts or tax increases. But he refused to accept smaller amounts for unemployment benefits and education programs, saying that money came with “strings attached,” an argument his critics rejected.

Perry’s failure to file reports on the governor’s Web site involves only the money administered directly through his office.

The governor’s office has received about $92.2 million of the $110 million it requested from the federal government for law enforcement purposes. About $81 million has been obligated and $6.8 million disbursed, according to the Comptroller of Public Accounts, which maintains weekly reports of the state’s stimulus activities.

Perry’s office submitted the weekly summaries with totals, but Texans looking for greater detail were directed from the weekly report back to the governor’s Web site to find a report from 2006 — three years before the stimulus program existed.

Citizens looking for spending details would have had to navigate the federal site,

recovery.gov, where all agencies, including the Texas governor, must post reports.

The Legislature demanded more disclosure than posting to the federal site. The appropriations act requires each state agency and higher education institution to post stimulus reports on their state Web sites for easier public access.

In his Aug. 25 executive order, Perry cited those requirements when he directed state officials “to maintain transparency and accountability in all cases.” He also required every agency to designate a representative “to maintain a flow of current information relating to the receipt, deployment, management and use of funds received by the state and any of its political subdivisions or contractors” under the stimulus program.

The governor’s office has been hands-on in administering the money, with senior adviser Mike Morrissey running meetings with agency officials once or twice a week until recently.

The information on state Web sites varies. The Texas Department of Transportation has a “project tracker” that shows each construction project, contractors, amounts being spent and location. It can be viewed at apps.dot.state.tx.us/apps/project_tracker/stimprojects.htm.

Even the tiny Texas Commission on the Arts has a link to all National Endowment for the Arts awards in Texas at www.nea.gov/grants/recent/09grants/states2/arra.php?STATE=TX.

The public can view the efforts by the governor’s office at governor.state.tx.us/cjd.

Goldman Sachs accused of defrauding investors

Link to article here.

Goldman Sachs has been a key player in advising governments as well as private investors on infrastructure/toll road deals called public private partnerships. They’re instrumental in many deals in Texas and have swarmed our highway department, infecting them with their fraudulent schemes that exploit taxpayers. Perhaps if justice is truly served in this case, we may rid ourselves of at least one major canker in this fight.

SEC accuses Goldman Sachs of defrauding investors
Posted Friday, Apr. 16, 2010
By MARCY GORDON
AP Business Writer

WASHINGTON — The government on Friday accused Wall Street’s most powerful firm of fraud, saying Goldman Sachs & Co. sold mortgage investments without telling the buyers that the securities were crafted with input from a client who was betting on them to fail.And fail they did. The securities cost investors close to $1 billion while helping Goldman client Paulson & Co., a hedge fund, capitalize on the housing bust. The Goldman executive accused of shepherding the deal allegedly boasted about the “exotic trades” he created “without necessarily understanding all of the implications of those monstrosities!!!”

The civil charges filed by the Securities and Exchange Commission are the government’s most significant legal action related to the mortgage meltdown that ignited the financial crisis and helped plunge the country into recession.

The news sent Goldman Sachs shares and the stock market reeling as the SEC said other financial deals related to the meltdown continue to be investigated. It was a blow to the reputation of a financial giant that had emerged relatively unscathed from the economic crisis.

Goldman Sachs denied the allegations. In a statement, it called the SEC’s charges “completely unfounded in law and fact” and said it will contest them.

The SEC is seeking to recoup the money lost by investors and impose unspecified civil fines against Goldman Sachs and the executive, Fabrice Tourre. The SEC could enter into settlement negotiations over the amount if Goldman changed its stance and decided not to fight the charges in a trial.

The SEC said Paulson paid Goldman roughly $15 million in 2007 to devise an investment tied to mortgage-related securities that the hedge fund viewed as likely to decline in value. Separately, Paulson took out a form of insurance that allowed it to make a huge profit when those securities’ value plunged.

The fraud allegations focus on how Goldman sold the securities. Goldman told investors that a third party, ACA Management LLC, had selected the pools of subprime mortgages it used to create the securities. The securities are known as synthetic collateralized debt obligations.

The SEC alleges that Goldman misled investors by failing to disclose that Paulson & Co. also played a role in selecting the mortgage pools and stood to profit from their decline in value. Two European banks that bought the securities lost nearly $1 billion, the SEC said.

“Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party,” SEC Enforcement Director Robert Khuzami said in a statement.

But Goldman said in a statement that it never mischaracterized Paulson’s strategy in the transaction. It added that it wasn’t obliged to “disclose the identities of a buyer to a seller and vice versa.”

The charges name only Goldman Sachs and Tourre, who was a vice president in his late 20s when the alleged fraud was orchestrated in 2007. Tourre, the SEC said, boasted to a friend that he was able to put such deals together as the mortgage market was unraveling in early 2007.

In an e-mail to the friend, he described himself as “the fabulous Fab standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!”

Tourre, 31, has since been promoted to executive director of Goldman Sachs International in London.

Stanford University spokeswoman Elaine Ray said a student by the name of Fabrice Tourre received a master’s degree in management science and engineering from the school in 2001.

A call to a lawyer for Tourre, Pamela Chepiga at Allen & Overy LLP, wasn’t returned.

Asked why the SEC did not also pursue a case against Paulson, Khuzami said: “It was Goldman that made the representations to investors. Paulson did not.”

Paulson & Co. is run by John Paulson, who reaped billions by betting against subprime mortgage securities. He is not related to former Treasury Secretary Henry Paulson, a former Goldman CEO.

John Paulson was among the first on Wall Street to bet heavily against subprime mortgages. His firm earned more than $15 billion in 2007, and he pocketed $3.7 billion. He has since earned billions more, largely by betting against bank stocks and then buying them back after their shares plunged.

In a statement, Paulson & Co. said: “As the SEC said at its press conference, Paulson is not the subject of this complaint, made no misrepresentations and is not the subject of any charges.”

Goldman, founded more than 140 years ago, built a reputation as a trusted adviser to investment banking clients and for sending top executives into presidential Cabinet posts.

In recent years, it shifted toward taking more risks with its clients’ money and its own. Goldman’s trading allowed the firm to weather the financial crisis better than most other big banks. It earned a record $4.79 billion in the last quarter of 2009.

The complaint filed in federal court in Manhattan “undermines their brand,” said Simon Johnson, a professor at the Massachusetts Institute of Technology and a Goldman critic. “It undermines their political clout. I don’t think anybody really values being connected to Goldman at this point.”

He continued: “There are many people who – until this morning – thought Goldman Sachs was well-run.”

The SEC’s enforcement chief said the agency is investigating a wide range of practices related to the crisis. The prospect of possible legal jeopardy for other major financial players roiled the stock market.

Goldman Sachs shares fell more than 12 percent Goldman and lost $14.2 billion in market capitalization. The Dow Jones industrial average finished down more than 125 points.

The SEC appears to be taking a particularly aggressive approach with Goldman. Typically, cases are resolved by firms agreeing to a settlement before the charges are made public, said John Coffee, a securities law professor at Columbia University.

“The SEC has changed its style,” Coffee said. “They wanted to tell the world what they thought Goldman had done wrong.”

The charges come as lawmakers seek to crack down on Wall Street practices that helped cause the financial crisis. Congress is considering tougher rules for complex investments like those involved in the alleged Goldman fraud.

President Barack Obama vowed Friday to veto a financial overhaul bill that doesn’t regulate mortgage-backed securities and other so-called derivatives. Legislation in Congress would for the first time regulate derivatives, whose value depends on an underlying asset, such as mortgages or stocks. Senate Republicans oppose the bill.

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, is “pleased that the SEC is departing from the lax enforcement of the Bush administration and is returning to the SEC’s proper role of protecting investors in the marketplace,” spokesman Steven Adamske said.

The biggest loser in the alleged fraud was ABN Amro, a major Dutch bank, and the Royal Bank of Scotland, which acquired major portions of it in 2007. The SEC said the Royal Bank of Scotland paid Goldman $841 million to unwind ABN transactions.

IKB Deutsche Industriebank AG, a German commercial bank, lost nearly all its $150 million investment, the agency said. Most of the money the banks lost went to Paulson in a series of transactions between Goldman and the hedge fund, the SEC said.

IKB was an early casualty of the financial crisis. It issued a profit warning in 2007 saying it had been hurt by U.S. subprime mortgage investments. IKB was sold in 2008 to Dallas-based Lone Star Funds.

Ed Trissel, a spokesman for Lone Star Funds, declined to comment on the case.

The SEC charges come after Goldman Sachs denied last week it that bet against clients by selling them mortgage-backed securities while reducing its own exposure to them.

In an annual letter to shareholders, Goldman said it began reducing its exposure to the U.S. mortgage market in late 2006.

AP Business Writers Alan Zibel in Washington, Stevenson Jacobs in New York and Ashley M. Heher in Chicago contributed to this report.

New diversion of road tax discovered, citizens demand end to diversions

Link to article here.

Anti Toll Groups Would Back Gas Tax Increase
but only if ‘diversions’ from gas tax fund are ended
By Jim Forsyth
Friday, April 16, 2010

Leaders of the anti toll road movement in Texas are quietly notifying state lawmakers that they would support an increase in the state gasoline tax as an alternative to toll roads, but they are demanding some concessions in return, 1200 WOAI news reports.

Terri Hall, founder of the anti toll group Texans Uniting for Reform and Freedom, says an increase in the gasoline tax would be preferable to ‘out of control’ creation of toll roads.

The Texas gasoline tax, which is 20 cents a gallon, hasn’t been raised since 1991, and the move to more fuel efficient cars is drastically cutting into the amount of money available for highway construction and maintenance, which has led to talk of toll roads.

“The studies we’ve seen would show that somewhere between eight and ten cents a gallon would meet out road needs, without having to toll our roads,” Hall said.

Tax increases are very controversial in the Texas Legislature, with the Republican leadership and Governor Perry repeatedly indicating that they would oppose tax increases.

Hall says she would back the gas tax increase if lawmakers agree not only to completely end the controversial practice of ‘diverting’ gas tax revenue to pet projects in their districts, and if lawmakers consider using the state automobile sales tax for highway projects.

“We all pay vehicle sales tax when we buy a car, and that money is now going into general revenue, instead of to roads,” Hall said.  “My understanding is that there is $4 billion a year that we could put back into roads, without having to raise any taxes.”

The legislature is expected to be facing a massive deficit, as much as $15 billion, when the next session begins in January, and Hall concedes that with the state scrambling for general fund revenue, taking billions of dollars out of the general fund may not be politically feasible.

SHAKEDOWN: Blagojevich bribed road contractors on Illinois toll project

Link to article here.

WARNING: There is some profanity contained in this article. Blagojevich uses some profane words when speaking about his plans to extort money from road contractors in exchange for building a much bigger toll project (went from $1.8 billion to a $5 billion project).

Illinois Tollway in clear in Blagojevich corruption case – no staff or board implicated
Toll Road News
Posted on Wed, 2010-04-14 22:47
The Feds have released details of their corruption case against former Illinois Governor Rod Blagojevich. Called “Government’s evidentiary proffer” the 91-page document filed in US District Court in Chicago by US Attorney Patrick J Fitzgerald today shows that the Governor tried to use the Illinois Tollway to extort money from Tollway contractors. But it makes no suggestion that Tollway officers or board members were involved in the shakedowns, just the Governor himself and his staffers.

The document is remarkable for the detail of hundreds of conversations between the governor and his immediate staff and telephone calls. Clearly the FBI had Blagojevich’s offices wired and other places he met. They tapped into his telephone conversations and those of his immediate staff.  

Most important, key participants in the conspiracies led by Blagojevich are cooperating with the US Attorney in his prosecution, perhaps in return for leniency.

The case begins before Blagojevich won the governorship in an election in late 2002. There are accounts of conversations with associates to plan extortions early in 2002.

From p21 of the US case after he became governor:

“There were occasions after Blagojevich became Governor that Blagojevich, Kelly, Monk, and Rezko (political hacks and flacks) all met to discuss their efforts to make money from state action. For example, the four men met in a conference room at the offices of one of Rezko’s businesses in about mid to late 2003. During the meeting, Rezko led the discussion, standing at an easel or chalkboard and listed at least three or four different ideas or plans to make money being developed by Rezko that involved some kind of state action. At times, Kelly got up during the meeting and clarified or added to things that Rezko was saying. Blagojevich mostly listened during the meeting, but was engaged. As Rezko talked, he indicated how much money Blagojevich, Kelly, Rezko, and Monk could hope to make from the different ideas. The amounts that were associated with the different ideas were typically in the hundreds of thousands of dollars per deal, which would be evenly split four ways.”

Obsessed with moneymaking

As pictured in the US Government case Blagojevich was completely obsessed with using the post of governor to enrich himself and his supporters. Everything he did seems to have been geared to self-enrichment and self-advancement. Every issue and decision was discussed in terms of what opportunity it provided to extort and steal. Many cases of corruption are laid out in detail.

The Tollway appears about halfway through

Several pages (from p52 on) are devoted to “Attempted Extortion Relating to the Tollway Program”.

That started when Tollway board members talked with Blagojevich about potential construction plans. They presented a $1.8 billion option and a more ambitious $5 billion option. Blagojevich told a flack named Monk that the Tollway’s program would be great for engineering firms. If they’d cough up serious money he’d go with the $5b program: “If they don’t step up, fuck ’em. I won’t do the bigger announcement (the $5b) in January.”

The US case page 53 on: “In about mid-September 2008, Blagojevich met with Monk, Robert Blagojevich, and Construction Executive, who was an executive in a cement company, at the FOB (Friends of Blagojevich) offices. As an active member of a concrete industry association group, Construction Executive had been responsible for raising large amounts of contributions for Blagojevich beginning in about 2002. Monk had become the primary contact with Construction Executive in terms of fundraising for Blagojevich in about 2007.

“At the meeting, Blagojevich also talked about both the potential $1.8 billion and $5 billion Tollway road building programs. Blagojevich indicated to Construction Executive that he was going to announce the small plan that Fall. Blagojevich said that he was inclined to also go forward with the larger plan, but that he did not want word to get out about his interest in doing so. Blagojevich explained that he wanted to keep that quiet so that the legislature would continue to feel pressure to pass a capital bill. Blagojevich suggested to Construction Executive that Blagojevich had the power to go forward with either of the two Tollway roadbuilding programs without the approval of the legislature. In response, Construction Executive told Blagojevich that he was in favor of the building programs because the concrete industry really needed the work.”

Get the money in before the law changes

“Shortly thereafter in the meeting, Blagojevich said he wanted to talk about campaign contributions. Blagojevich talked about the change in Illinois law that would restrict the ability of companies that did work with the State of Illinois to contribute money to him, and how that law would take effect by the end of the year. Blagojevich asked for Construction Executive’s help raising money and indicated that Blagojevich wanted to raise the money before the end of the year.

Fobbed off

“Blagojevich asked Construction Executive how much money he could raise. When Construction Executive initially indicated that he did not know, Blagojevich again brought up the Tollway program and discussed additional projects that could be done if the larger program were done. At the end of the meeting, Construction Executive was again asked about how much money he thought he could raise for Blagojevich. Construction Executive indicated that he would have to go back to his people and talk to them about it.

“Both Monk and Construction Executive understood that Blagojevich was making a connection in the meeting between the amount of money that Construction Executive might be able to raise for Blagojevich and his willingness to do the larger Tollway program. As a result of Blagojevich’s statements, Construction Executive felt pressure from Blagojevich to raise money for Blagojevich so that he would allow the larger Tollway program to go forward.

“After Construction Executive left the meeting, Blagojevich directed Monk to ask Construction Executive to raise $500,000 in contributions, which money Monk understood would come both from Construction Executive’s own company as well as from other companies in the road building industry.

Blagojevich: “If they don’t perform (pay up) fuck ’em”

“On October 6, 2008, Blagojevich met with Lobbyist A at the offices of Friends of Blagojevich (“FOB”) offices. During their meeting, Blagojevich mentioned an upcoming announcement he was planning to make regarding a $1.8 billion project with respect to the Tollway. Blagojevich said words to the effect of, ‘I’ve got Lon going to Construction Executive and asking for $500,000’ and ‘I could have made a larger announcement but wanted to see how they perform by the end of the year. If they don’t perform, fuck ‘em.’

$1.8 billion or $5 billion is the issue

“Lobbyist A knew that Construction Executive was involved with a trade association that would benefit from the proposed $1.8 billion project. Lobbyist A understood Blagojevich to mean was that he expected that Construction Executive would raise $500,000 in contributions to FOB and that Blagojevich was willing to commit additional state money to the project beyond the $1.8 billion but was waiting to see how much money interested entities raised for FOB before the end of the year.

“In mid-October 2008, Blagojevich announced a plan for a $1.8 billion Tollway building program. On about October 22, 2008, Blagojevich called Construction Executive. Blagojevich talked about the $1.8 billion program and asked Construction Executive something like ‘How are you coming with the fund raising?'”

But the US Government account has it that Construction Executive was in fact stringing the governor along, not saying yes, not saying no.

Here’s the official account quoting from p55 and p56:

“Construction Executive indicated to Blagojevich that he was working on raising money, but that was not true. Construction Executive did not, in fact, plan on raising any money for Blagojevich, but Construction Executive did not want to say that for fear that Blagojevich would be less inclined to go forward with the larger Tollway project. Construction Executive ultimately did not make or arrange for any contributions to be made to Blagojevich.

“(Flack) Monk also continued to stay in touch with Construction Executive about potential contributions to Blagojevich, and consistently reported on the status of those conversations to Blagojevich and Robert Blagojevich, including on November 24, 2008 (Blagojevich Call #1005).22/”

That’s the extent of the Tollway involvement in the 91 page document from US Attorney Fitzgerald.

The Governor tried to use his power over key Tollway decisions to extort money from companies wanting business with the Tollway. But he failed.

Of Blagojevich, apparently, the Construction Executive rightly said “Fuck ‘im.”

Under his breath anyway.

BACKGROUND: Blagojevich, a Democrat was arrested by US marshals Dec 9 2008 charged with extensive corruption, the most spectacular count being an effort sell to the highest bidder the US Senate seat vacated by Barack Obama after his election as US President.  Blagojevich as governor had the power to appoint a successor to Obama.

An oddly youthful looking man he’s in fact53 (born 1956-12-10) his full name is Milorad Blagojevich, his first name anglicized and simplified to Rod. Born and raised on the northwest side of Chicago to Serb immigrants he worked as shoeshiner, pizza delivery, and in a meat plant. He is said to have washed dishes in a camp on the Trans Alaskan Pipeline.

Wikipedia on his education: “Blagojevich graduated from Chicago’s Foreman High School after transferring from Lane Technical High School. He played basketball in high school and participated in two fights after training as a Golden Gloves boxer.[19] After graduation, he enrolled at the University of Tampa.[20] After two years, he transferred to Northwestern University in suburban Evanston where he graduated with a BA in history in 1979. He later (obtained) his JD from the Pepperdine University School of Law in 1983. He later said of the experience: ‘I went to law school at a place called Pepperdine in Malibu, California, overlooking the Pacific Ocean — a lot of surfing and movie stars and all the rest. I barely knew where that law library was.’ ”

He married Patricia Mell the daunter of Richard Mell a Chicago alderman.  He clerked for another Chicago alderman, then got a job as an assistant prosecutor under famous mayor Richard M Daley, when Daley was State’s Attorney.

His influential father-in-law appears tog have launched him on his political career – first in the state house, then as a US Congressman for the 5th district  (Chicago). He seems to have been a good campaigner but kept out of the spotlight as a state and US representative.

His predecessor as Illinois governor George Ryan, a Republican, also an extortionist and thief, is serving time in a federal jail.

TOLLROADSnews 2010-04-14

Dixon: We need principled road policy

Link to article here.

Mr. Dixon has been a stalwart supporter of the cause for many years. He’s sacrificed more hours than we can count in Austin advocating for taxpayers on transportation issues. This article was also published in the Lone Star Report. It hits the nail on the head of how we move forward…

Tired of Gridlock? Try Principled Road Policy
by Don P. Dixon
Dallas Morning News, Guest blogger
Mon, Apr 12, 2010

The main reasons Texans are stuck in traffic is a massive failure in public road policy, lack of reforms and inefficiency at TxDOT. The fact is that public roads are a low priority for the state.

In 30 years the state budget went up 8.66 times – from $10.22 billion in 1980 to $88.57 billion in 2009.

In the same 30 years, road work went up 2.69 times from $1.58 billion to $4.25 billion.

In 1980, Texas spent 15.45 percent of state budget on road work (maintenance and new construction). In 2009 Texas spent 4.8 percent of state budget on road work.

Whether state leaders believe it or not, in 30 years road work priority and efficiency continue to deteriorate. Car and truck drivers have paid billions in gas taxes and registration fees to build and maintain the roads, but almost half is diverted away from public roads. All gas tax and registration fees should go to public roads.

Taxpayer restitution of at least $12 billion needs to be corrected by temporarily transferring auto/truck sales tax (including parts sales) to public roads, almost $4 billion per year.

Before the public is asked to pay more in new taxes, reform of road policy must occur:

1. Stop building roads with debt such as $12 billion state road debt and $12.7 billion plus off-budget toll road debt.

2. The toll road debt and costs to run toll road bureaucracy are unacceptable, unaffordable, and unsustainable.

3. End diversions completely.

4. Increase TxDOT efficiency and stop wasteful spending.

5. TxDOT must halt the siphoning of billions of dollars from public roads to convert public right of ways into toll roads, i.e., stop tolls, stop CDAs (privatizing road ways).

6. End non-traditional financing (innovative financing).

The off-budget tax increases the state leaders have laid on drivers through tolls and privatizing Texas roads are confiscatory taxes. This must be stopped.

The toll tax of 17 cents to 75 cents per mile means the driver pays $4 to $17 per gallon extra for toll roads.

The 87 toll roads TxDOT has on its books will cost Texans, optimistically speaking, a minimum of $177 billion in toll tax over 22 years, which annualized is more than the current TxDOT budget.

No one likes tax increases; however, if additional funds areneeded after reforms, the statewide gas tax per gallon is the most efficient and most fiscally responsible way to fund roads.

With regard to the local option tax, Gov. Pat Neff (father of the public road system) learned it served only to create a patchwork road system. He saw it was a failed system, so he founded the statewide highway system.

A uniform statewide public road system funded at the state level – freely accessible by all citizens, regardless of income, status or location – is the proper and rightful duty of the state.

The once superior ranking of the Texas public road system was lost by compromising sound, principled road policy. Thus we are in road gridlock.

Restoration of an equitable statewide public road system will come about only through our elected leaders, in every branch of government, recognizing the cause and courageously mandating an accountable agency using best practices and a sound fiscal policy in order to regain the taxpayers’ trust.

Don Dixon is a retired engineer who lives in San Antonio.

PPP planned for Oregon bypass through farmland

Link to article here.

It shouldn’t surprise that the pro-toll crowd sees farmland as fair game fro condemnation for toll roads and preferable to residential and commercial property. With this attitude, how will we feed America if we continue to pave over our country’s farmland to make way for urban “congestion relief”? The Trans Texas Corridor is a perfect case in point. Studies showed that a bypass through rural Texas would do NOTHING to relieve urban congestion.

It was too out of the way, plus the fact that people would have top pay a toll to access it, made traffic volumes too low to be toll viable. Yet to listen to this industry article, they live in a world of their own reality. One that promises rosy traffic projections but will likely end in massive taxpayer bailouts when the road goes belly-up as the South Bay Expressway PPP contract just did in San Diego.

Oregon businessman, engineer developing P3 for I-5 to 99W connector
Fri, 2010-04-09
Toll Road News

A group of local businessmen, engineers and roadbuilders in Oregon are developing an approximate 20km (12 mile) $350m to $400m tollroad project designed to improve connections between Portland and the coast. Called the Coastal Parkway the project would provide a high quality connection between I-5 and the 99W or Southwest Pacific Highway near Dayton. They hope to get a toll concession from the state under its Public Private Partnerships law of 2009.

Principals of the group Coastal Parkway LLC are Bob Youngman, a developer based in Newberg and Phil Martinson PE, a consulting engineer. Also involved are some local construction companies.

We had a long talk with Youngman this afternoon.He says the new P3 law in the state is a great improvement on previous law, and he has been encouraged by support offered for the project by state and local officials.

He says the project is sorely needed but state and local officials say there is no prospect for financing the project with tax revenues.

They also have no stomach for taking it on as a public toll project.

Oregon is one of the few states in the union without any toll road or crossing.

Previous studies

The 99W corridor has been studied several times in the past for upgrades.

It is currently a 4-lane surface arterial with little access control and no grade separations. Previous planning for upgrades has focussed on sticking close to the southwest-northeast axis of 99W and bypassing the towns of Tualatin, Sherwood, Newberg and Dundee. The bypasses have been studied right on their fringes, and sticking to the north side of the Williamette River.

This is a corridor about 40km (25 miles) long but quite heavily developed and the improvement to expressway standard was costed at close to $1 billion for the length of the corridor.

Concession with Macquarie only generated study

Macquarie and Bechtel competed for a toll concession for this route (and for two others around Portland area) in 2005 and Macquarie won.

But Macquarie concluded in 2007 the traffic and revenue wouldn’t support the cost of the 99W bypass upgrade. The project languished.

More economical than the fringe bypassing

Youngman says his group’s proposal is far more economical because rather than attempt the fringe bypasses along 99W, it makes use of some 22km (14 miles) of I-5 south to the Donald/Aurora area and involves a much shorter new east-west tolled link through rural land to meet 99W in Dayton.

That proposed east-west link is being called the Coastal Parkway.

Five alternative alignments are being shown at meetings. They range in length between 18km (11.3mi) and 23km (14mi). The longer alternates take off from I-5 further north but make for a slightly shorter run Portland to the coast, although because of the dogleg of using I-5 all are a few miles longer than the old plan for hugging the towns of the 99W corridor.

An advantage however is that they involve almost no resumption of residential or commercial properties like the fringe bypass plans, since the routes for the Coastal Parkway go through farmland.

Williamette River bridge

They do involve a decent sized bridge over the Williamette River. This has to have a span of around 180m (600ft) so it would probably be a cable-stay bridge. However the river is not used by major ships and the Coast Guard only requires a clearance of 15m (50ft).

Otherwise the Coastal Parkway involve three interchanges, one at each end, I-5 and 99W and another at River Road NE serving the small town of St Paul. They also propose a recreational bike/hike trail along the river.

With just one intermediate interchange there would be just two toll points and all-electronic tolling sounds the likely choice.

Youngman says they estimate project cost will be in the range $350m to $400m – less than half the cost of previous schemes in the 99W corridor itself.

The route should attract 99W car travelers between the Portland area and the coast plus a lot of lumber, chip, plant nursery, and produce trucks as well as motor coaches. Indian reservations at Grand Ronde to the southwest have tourism and casino activities swerved by coaches.

Traffic volume

As for traffic volume they are confident that the tollroad can attract more than the 24k vehicles/day they estimate is the break-even traffic for the project.

Youngman, who was born and raised and is still based in the Newberg area, says the congestion is so bad through the small towns along 99W that economic opportunities are limited. He says the project is gaining support with the promise of traffic relief and improved travel for the cities and towns of Newberg, Dundee, McMinnvile, Dayton, StPaul, Lafayette and Donald.

He is interested in partnering with larger companies.

pdf of a powerpoint presentation by Coastal Parkway LLC:

http://www.tollroadsnews.com/sites/default/files/PowerPt.pdf

Contacts Youngman royale_chinook@juno.com Martinson phil@pmeng.com

Toll reader mistakes digits, bills & fines WRONG driver

Link to article here. Electronic toll equipment continues to be rife with problems that fine and harass innocent motorists. Refunds are late in coming if ever, but bills and fines sure aren’t!

Toll road computer needs glasses
Misreads an 8 as a 0; issues fine to Army wife in South Korea
By Jon Yates
CHICAGO TRIBUNE
What’s Your Problem?
April 11, 2010

It’s pretty clear Heather Perry didn’t blow through a toll without paying March 10, 2009.

For one thing, she was half a world away, living with her Air Force husband, stationed at Osan Air Base in South Korea.

For another, she didn’t own the car photographed by an Illinois tollway camera. Even the license plate number was wrong. Perry’s plate, which sat in a storage facility in California, ends in a zero. The license plate in the picture ends in an eight.

By the time the notice of violation arrived at her mother’s Broadview home, there had been three violations mistakenly attributed to Perry.

Each missed $1 toll had been assessed a $20 fine, bringing the total to $63. The notice of violation gave Perry 14 days to respond. If she didn’t, she would be found liable for the tolls and assessed another $150 in fines.

Her mother, Phyllis Perry, forwarded her the letter immediately.

“Because she’s in Korea, she went ahead and paid,” Phyllis Perry said. “I told her not to. I said we have some time. I think she was worried she’d get fined, and it would double. She didn’t feel like she could fight it.”

A short time later, Phyllis Perry called the Illinois State Toll Highway Authority and pleaded her case. A customer service representative reviewed the case and agreed with her.

Turns out, a computer that reads the license plates of toll violators had erroneously interpreted the eight as a zero. A toll authority worker who is supposed to review the computer’s work failed to catch the computer’s error.

The customer service agent promised to send Perry a $63 refund.

That was more than a year ago.

Phyllis Perry had almost forgotten about the refund until she received another notice from toll authority last month. It seemed history had repeated itself.

The same car that blew through three toll plazas in 2009 had blown through another three this year. Again, the tollway’s computer misread the license plate. So did the toll authority’s human employees.

For the second year in a row, the toll authority sent Perry a notice that she owed $63.

“It’s the same car, the same license plate, the same exits as the car that did this in 2009,” Phyllis Perry said. “It’s very, very crazy.”

Phyllis Perry said she called the toll authority again, and a customer service representative immediately agreed to erase the newest batch of fines. Phyllis Perry then asked about the status of her daughter’s refund from last year.

“She told me you have to be patient.”

Patience is one thing. But an entire year? Tired of waiting, she e-mailed What’s Your Problem?

“I’m very, very frustrated,” the mother said. “It bothers me that they want more money for things going on in the state, and they can’t take care of this one little problem.”

The Problem Solver called toll authority spokeswoman Joelle McGinnis, who looked into Perry’s case. A few days later, McGinnis called back with a mea culpa. Put simply, the toll authority dropped the ball.

“We have documentation of the request for the refund coming to our contracted customer service center,” McGinnis said. “Unfortunately, that request never was processed.”

It has been now. McGinnis said the request was hand delivered to the appropriate office on Wednesday. Perry should be getting her check for $63 within about a week, McGinnis said.

Phyllis Perry said she will call her daughter and inform her of the good news. When the check arrives, she will forward it to Korea immediately.

She said the process still bothers her.

“When I called them this last time, (the customer service agent) told me I just have to be patient, that these things take time,” Phyllis Perry said. “She should have told me it wasn’t in the system, and we could have gone from there.”

Not that she’s too upset.

“At least it’s coming now,” she said. “As long as it’s coming, I’m happy.”

Transportation Secretary: End to favoring motorized transportation with gas taxes

Link to article here.

Perhaps the most disturbing part of this policy shift is that we already have a litany problems caused by diverting gas taxes AWAY from roads. Diverting yet more money away from roads is stealing from Peter to pay Paul. We pay gas taxes to build and maintain our roadways. It’s supposed to be a dedicated fund that cannot be touched for other purposes. Mass transit, bike lanes, walkways need to be paid for through other means, particularly when the road funding shortfalls have caused massive new tax hikes through tolling (75 cents a mile to drive our public roads compared to 1-2 cents per mile under the gas tax system).

LaHood’s cavalier attitude about government intrusion and its attempts to coerce people out of their cars by starving their gas taxes to pay for non-road uses is equally disturbing.

“It is a way to coerce people out of their cars,” said LaHood…“About everything we do around here is government intrusion in people’s lives…So have at it.”

Obama Transportation Secretary: ‘This Is the End of Favoring Motorized Transportation at the Expense of Non-Motorized’
Wednesday, March 24, 2010
Terence P. Jeffrey, Editor-in-Chief
CNS News.com



Transportation Secretary Ray LaHood. (AP Photo/Haraz N. Ghanbari)

(CNSNews.com) – Transportation Secretary Ray LaHood has announced that federal transportation policies will no longer favor “motorized” transportation, such as cars and trucks, over “non-motorized” transportation, such as walking and bicycling.

LaHood signed the new policy directive on March 11, the same day he attended a congressional reception for the National Bike Summit, a convention sponsored by a bicycling advocacy group, the League of American Bicyclists. LaHood publicly announced his agency’s new direction four days later in a posting on his blog—“Fast Lane: The Official Blog of the U.S. Secretary of Transportation”–where he effusively described it as a “sea change” for the United States.

“Today, I want to announce a sea change,” LaHood wrote. “People across America who value bicycling should have a voice when it comes to transportation planning. This is the end of favoring motorized transportation at the expense of non-motorized.”

LaHood’s policy statement not only called for this change to take place in programs funded by the federal government, but also said the federal government would “encourage” state and local governments to do the same in their own programs.

“The establishment of well-connected walking and bicycling networks is an important component for livable communities, and their design should be a part of Federal-aid project developments,” said LaHood’s policy statement.

“Because of the benefits they provide, transportation agencies should give the same priority to walking and bicycling as is given to other transportation modes,” it said.

LaHood’s policy statement envisions the development of a transportation system in which people walk and bike for short distances and rely on mass transit for longer trips. “The primary goal of a transportation system is to safely and efficiently move people and goods,” said LaHood’s statement. “Walking and bicycling are efficient transportation modes for most short trips and, where convenient intermodal systems exist, these nonmotorized trips can easily be linked with transit to significantly increase trip distance.”

On May 21, LaHood told reporters at the National Press Club that the “Partnership for Sustainable Communities’ his department had formed with the Environmental Protection Agency and the Department of Housing—sometimes known as the “livability initiative”–was designed to “coerce” people out of their cars.

“Some in the highway-supporters motorist groups have been concerned by your livability initiative,” said the moderator at the National Press Club event. “Is this an effort to make driving more torturous and to coerce people out of their cars?”

“It is a way to coerce people out of their cars,” said LaHood.

The moderator later asked: “Some conservative groups are wary of the livable communities program, saying it’s an example of government intrusion into people’s lives. How do you respond?”

“About everything we do around here is government intrusion in people’s lives,” said LaHood. “So have at it.”

Motorists now pay a federal tax of 18.3 cents on every gallon of gasoline they buy, and 24.4 cents on every gallon of diesel fuel. These taxes fund the federal Highway Trust Fund. According to a study by the Heritage Foundation, 26 percent of the money in this trust fund was diverted in fiscal 2008 to pay for things other than highways and roads. Of the total of $52 billion spent that was spent that year, $9.7 billion went to mass transit, even though mass transit passengers accounted for only 1.6 percent of surface-transportation passengers. The highway trust fund also gave $80 million that year to build trails.

NEW Truth Be Tolled to premiere at Houston Film Festival Tuesday

PRESS ADVISORY

Contacts: Terri Hall, Texans Uniting for Reform and Freedom, (210) 275-0640, Bill Molina, Storm Pictures, info@truthbetolled.com
WEB: www.TexasTURF.org / www.TruthBeTolled.com

Feature Documentary Sheds More Truth on Trans-Texas Corridor and Toll Roads

Houston, TX – “Truth Be Tolled: The 281 Special Edition,” a newly completed feature documentary from Storm Pictures, has been nominated for a 2010 Remi Award and will premiere as an Official Selection of The 43rd Annual WorldFest Houston International Film and Video Festival on Tuesday, April 13, 2010 at 5 pm at AMC Theaters, 2949 Dunvale, Houston, Texas 77063. This new film documents the bitter fight in the Alamo City behind the controversial plan to toll an existing freeway, US Highway 281.

WHAT: NEW Truth Be Tolled documentary to win top award and will premiere at Houston Film Festival
WHEN: Tuesday, April 13, 2010 at 5:00 PM
WHERE: AMC Theaters, 2949 Dunvale, Houston, Texas, 77063

Director William H. Molina has chronicled public meetings, press conferences, environmental lawsuits and citizen protests that erupt and eventually culminate in a State Legislative session plagued by back-room deals, loop-holed bills and turncoat leadership.

The 281 Special Edition follows a trail of federal stimulus funds, comprehensive development agreements and lobbying efforts that pave the way to ultimately privatize public infrastructure. The documentary also exposes the truth about the Trans-Texas Corridor, a threat still alive for many ranchers, farmers and residents that sit in its path.

“This is not just one toll road, this is going to be an entire new policy, every new lane, every new road in the State of Texas is slated to become a toll road, if they can make it toll viable,” states Terri Hall, a home-schooling mother turned activist who leads a grassroots effort to halt the proliferation of tolling plans and the Trans-Texas Corridor.

The Texas Department of Transportation is so entangled in its own shortcomings that the Sunset Commission declares, “Until trust is restored at TxDOT, the state can not effectively meet its transportation needs.”

There will be a question and answer period with cast and crew after the screening.

For more information, see the following links:
http://www.truthbetolled.com/

Film Trailers also on You Tube:
http://www.youtube.com/watch?v=SUF9eVBzeLk
http://www.youtube.com/watch?v=pwewG4ufNDQ

–END–

Trinity toll road farce

Link to article here.

TxDOT insisted NO work could commence to retrofit decaying bridges near the Trinity River in Dallas unless the Trinity toll road was built first. Now they’ve changed their tune saying work CAN begin on the unsafe overpasses BEFORE the Trinity toll road is built. So once again, TxDOT used deceptive tactics to force voters into supporting an unwanted toll road only to do a bait and switch post-election.

This is why insisting on a public vote on toll roads is a recipe for failure. The big money armed with the aid and comfort of a corrupt highway department know how to get these ill-conceived projects past the voters. If nothing else, they know it’s a waiting game…they won’t fix our roads and we’ll be stuck in endless gridlock until we finally capitulate to their toll agenda.

TxDOT: Key phase of downtown Dallas road project can start Trinity toll road
Saturday, April 3, 2010
By RUDOLPH BUSH and STEVE THOMPSON / The Dallas Morning News
Part of the city’s tangled Mixmaster interchange downtown, including two key bridges spanning the Trinity River, can be rebuilt without constructing a toll road through the Trinity levees, a top transportation official told regional planners and elected officials Friday.

Bill Hale, Dallas district engineer for the Texas Department of Transportation, said the city and state need to move forward with rebuilding the bridges over Interstate 35E and I-30 because they are rapidly deteriorating.

He urged Dallas officials to focus on finding funding for those projects as soon as possible.

The Mixmaster interchange is a key piece of the $2 billion Project Pegasus, which city and state officials have long said could not get under way until the toll road between the Trinity levees was built.

Speaking to the Dallas Regional Mobility Coalition, Hale said Friday that was TxDOT’s view for many years.

“We knew the best way to get it built was to have the extra lanes built first, meaning the Trinity [toll road], then secondly coming in with the Pegasus project,” Hale said.

The condition of the bridges has changed that, he said.

“The issue that we’re working with on this thing [now] is the safety of the thing. And that’s what I’m concerned with,” he said.

City officials hope to replace both concrete bridges with soaring white steel bridges designed by famed Spanish architect Santiago Calatrava.

Calatrava has designed the I-30 bridge, also known as the Margaret McDermott Bridge. The I-35E bridge has yet to be designed, and neither is funded for construction.

In 2007, during the run-up to a referendum that would have killed the toll road, backers of the road repeatedly cited transportation officials’ tying of funding for Pegasus to completion of the toll road.

In a November 2007 article in The Dallas Morning News, Timothy Nesbitt, a Transportation Department project manager, said the toll road was the key to nearly $5 billion in other badly needed highway improvements in downtown Dallas.

“Without the Trinity, the other projects go away,” he said.

And in an opinion piece in The News, Mayor Tom Leppert, who led the successful fight for the road, wrote that “TxDOT has flat out said it will not proceed with the state and federally funded Project Pegasus, the Mixmaster fix, if a reliever route – the Trinity Parkway – isn’t in place.”

Now, it appears the Transportation Department is eager to go forward with much of the Mixmaster – which includes the I-35E and I-30 interchange southwest of downtown – even if it cannot yet construct the entire Pegasus project. This portion would cost an estimated $500 million to $600 million, or more than a quarter of the cost of Pegasus.

Hale said the toll road or some other reliever route must be built before the so-called Canyon – a depressed portion of I-30 south of downtown – can be rebuilt.

In an interview after his presentation, Hale said his comments weren’t intended to represent a major shift in plans.

“It’s not a shift. There are portions of the Pegasus that can’t begin before [a reliever route] happens,” he said.

Leppert and City Manager Mary Suhm said they too don’t view Hale’s recommendation on the bridges as a sweeping change to the project.

“Can we do stuff around the edges and periphery? Absolutely,” Leppert said.

He compared reconstruction of the bridges to the city and state’s decision to go forward with the reconstruction of Dead Man’s Curve on the S.M. Wright Freeway. That was originally intended to be rebuilt in tandem with the toll road.

But opponents of the toll road, led by council member Angela Hunt, see it differently.

“First, it was we cannot do any part of Project Pegasus; we are going to lose hundreds of millions in funding” without the toll road, she said. “Now it comes to light that we certainly can get started on a major part of the project and move forward without having this detour in place,” she said.

Hunt, who has long urged the city and state to complete the Pegasus project without the toll road, said the decision to move forward now flies in the face of representations by toll road backers during the 2007 campaign.

She said she believes that the toll road project – hampered not only by concerns about the safety of the city’s levee system but also by a $1 billion funding gap – is dead, and that the Transportation Department has no choice but to move on with Pegasus now.

In her view, Hale’s urging of the city to focus on funding construction of the bridges instead of the toll road is telling.

“TxDOT does not like to be on the wrong side of Dallas city politics. To even express that in conservative terms, I think, is pretty significant,” she said.

Leppert called that blatantly false and said the city has been working constantly to secure funding for the bridges.

“You don’t just do one thing at a time. In terms of the importance of the bridges, I was in Washington [recently] to make a push,” he said.