Link to article here.

TxDOT continues to mislead the public into thinking the Trans Texas Corridor is DEAD when in fact, it’s just been renamed. If you read this article carefully, they even say so. The new name is “innovative connectivity plan” where they plan to break it up into segments instead of build the massive new corridor all at once. It’ll still be a gigantic foreign-owned toll road. Our tax dollars at work…in order to truly KILL the TTC and reform this rogue agency, we need a new Governor. The current regime is a one trick pony…mislead and railroad the public until it’s too late to stop it.

Trans Texas Corridor as such is gone

Regional segments, such as Loop 9, part of new vision

Leslie Gibson
Rockwall County Herald-Banner
September 9, 2009
Texas Department of Transportation (TxDOT) has no intention of developing the Trans Texas Corridor TTC, said agency spokesperson Chris Lippincott, on Wednesday.

He confirmed what was said by transportation planners in the Aug. 26 Rockwall County Road Consortium meeting, that the TTC is almost gone. Instead, local input will be key to developing transportation segments serving regional needs, through a new plan, Innovative Connectivity in Texas/Vision 2009.

The vision was unveiled in January at the fourth annual Texas Transportation Forum, in which TxDOT Executive Director Amadeo Saenz outlined new plans for corridor width, transportation mode, use of existing facilities, timelines, and level of involvement of local officials and citizens in the planning.

“Texans have spoken, and we’ve been listening,” said Saenz. “I believe this transformed vision for the TTC and other major corridor development goes a long way toward addressing the concerns we’ve heard over the past several years.”

Focus will be on segments closer to 600 feet wide, rather than the 1,000 plus of TTC, and be named per the highway numbers originally associated with each segment, such as I-69, SH 130 and closer to home, Loop 9.

Loop 9 is proposed to be a 44-mile-long new road running along the southern edge of Dallas County, dropping into Ellis County, and turning north through the western edge of Kaufman County and back east into Dallas County in order to connect Interstate 20 and US 287, as well as major cross streets. It was first conceived in the 1950s. “It may be developed by the private sector, it may end up as a toll road because of lack of resources,” Lippincott said.

It is a TxDOT project.

It’s east-west portion would also tie into the Outer Loop, a ring of connected roadways around the Metroplex, being coordinated by North Central Texas Council of Governments (NCTCOG).

At the Kaufman/Dallas County border, where Loop 9 heads northwest, the Outer Loop would break off and head northeast into Rockwall County if Rockwall County’s preferred Outer Loop alignment is ultimately chosen, or into Hunt County.

“North Central Texas COG is as sophisticated an agency of this type as there is in this state,” Lippincott said in the phone interview. “The means it has are vast,” he said, noting NCTCOG, as the other metropolitan planning areas in the state, receive some federal funding.

When told that some citizens expressed concern at the Consortium meeting that the Outer Loop is a Trans Texas Corridor in disguise, he said, “I don’t want to minimize questions. They (the citizens who are concerned) should stay involved.”

“Every time we build a road, we’ve got to listen and work with the people,” he said.

Right of way can not be purchased until there is money, and not until an environmental impact statement is approved. A draft environmental impact statement for Loop 9 is due in late 2009.

“At some point we will have to acquire the land if we build Loop 9,” Lippincott said. On that subject, he said roads “mean different things to different people. “If you’ve got a McDonalds or a 7/11, Loop 9 could be the greatest thing that could happen. If you’ve got a retirement home, you’ll have a different view,” he said.

TxDOT is expected to hold a public hearing on Loop 9 in the fall; the date is yet to be announced.

Though TTC is essentially gone, “what remains is the challenge created by traffic across our state,” Lippincott said, noting that Texas grows by 1,000 people a day. To that end, TxDOT is still holding public meetings on the 600 mile I-69 project.

Link to article here.

Does the state really need Spanish money to rebuild LBJ?
By Rodger Jones / Dallas Morning News
September 8, 2009

The answer is heck yes.

News from Austin may come as a provocation to situational toll-road critics, especially those whose blood last boiled because of Spanish money’s interest in the SH 121 project that eventually went to NTTA.

TxDOT signed an agreement last week with a consortium headed by the Spanish company Cintra. It will put up money along with the Paris-based Meridiam Infrastructure Fund. The complete list of the LBJ project’s partners includes the probable investment by the Dallas Police and Fire Pension System.

After completion about six years from now, the new LBJ will be part free, part tolled, with the private developers getting tolling rights. The new roadway will have more free lanes, but the three tolled lanes will be VERY expensive — like maybe 55 cents a mile to start off.

I don’t see how this roadway gets built if not for this kind of exotic arrangement and outside capital.

See if you agree:

The project was tentatively awarded to the Spanish-group in February but now the deal is signed and the consortium lines up financing.

Why that outside money is critical: The local share of the state’s hard-pressed construction funds have dwindled to the point that the local TxDOT district couldn’t reasonably do the $2 billion LBJ project even over time. And under that scenario, no other new projects could go forward.

Link to article here.

These Republican Governors have one playbook…rip-off the taxpayers to benefit their cronies. Mitch Daniels (Indiana), Arnold Schwarzenegger (California), and Rick Perry (Texas) are the three muskateers of taxpayer abuse, all the while Perry is running a re-election campaign contrasting Texas to financially bankrupt California. Perry conveniently overlooks his own similarities to Schwarzenegger in pushing risky public private partnership (PPP) toll road schemes that sell-off public highways to foreign toll operators. Throw in Pennsylvania’s Democrat Governor, Ed Rendell, and it demonstrates PPPs and toll roads provide a bi-partisan, equal opportunity fleecing.

Arnold Schwarzenegger tries to oust transportation commission appointee
The governor withdrew his reappointment after the businessman objected to the administration’s plan for a public-private partnership for freeway construction. But state senators saved his post.
By Patrick McGreevy and Evan Halper
September 2, 2009
Los Angeles Times

Gov. Arnold Schwarzenegger this week tried to yank one of his appointees from a state board after the man balked at an administration-backed proposal he considered too risky for taxpayers. But lawmakers, in an end run, kept the San Francisco businessman on the panel.

The appointee to the California Transportation Commission, James Ghielmetti, objected to an administration plan to accelerate the expansion of private companies’ role in freeway construction. He advocated giving regulators more time to assess the potential effects of such a move.

Schwarzenegger, who has aggressively pushed public-private partnerships, then withdrew Ghielmetti’s reappointment to the commission.

But Senate Leader Darrell Steinberg (D-Sacramento) agreed with Ghielmetti. Within hours, he and other senators voted Ghielmetti back onto the panel as their own appointee. In an interview, Ghielmetti said the governor’s chief of staff, Susan Kennedy, was behind the withdrawal.

“She saw this as a chance to get rid of me,” Ghielmetti said.

Ghielmetti said Kennedy accused him of conspiring with Democrats in the Legislature to change the administration’s plan, something he denies.

Administration officials declined to discuss Ghielmetti’s interactions with Kennedy. “The governor is looking for strong advocates for public-private partnerships to get jobs online as quickly as possible,” said Schwarzenegger spokesman Aaron McLear.

He said the administration looks forward to appointing “individuals who share the governor’s commitment to rebuilding the state’s infrastructure and creating jobs.”

The owner and chief executive officer of Signature Properties, a Northern California land development and home-building firm, Ghielmetti said the guidelines for public-private partnerships should include detailed provisions for every possibility, including terms for repayment of money from private firms in the event of default, lease terms and other protections.

He complained that Kennedy and Dale Bonner, secretary of the state Business, Transportation and Housing Agency, pressured him to adopt a more “loosey-goosey” approach even though the commission is independent from the administration.

“I felt we were being told what the guidelines should be,” he said. “It’s inappropriate.”

Ghielmetti is the latest Schwarzenegger appointee to be jettisoned after straying from the administration’s agenda. Last year, the governor dropped his brother-in-law, Bobby Shriver, and fellow action hero Clint Eastwood from the state parks panel after their opposition helped derail plans for a toll road through San Onofre State Beach in San Diego County. Schwarzenegger supported the project.

In 2007, the chairman of the state Air Resources Board, Robert F. Sawyer, said he was fired by Schwarzenegger for pushing for anti-pollution measures beyond what the governor’s office wanted. Also in 2007, R. Judd Hanna quit the Fish and Game Commission at the administration’s request after Republican lawmakers urged his ouster because he had sought to ban lead bullets in condor territory.

In one of the best developments Texas taxpayers have had all year, the authority to enter into contracts that sell-off Texas freeways to foreign corporations, called Comprehensive Development Agreements (CDAs or PPPs), expired August 31. Spoiling the good news is the fact that about a dozen CDAs were removed from the moratorium placed on CDAs in 2007, so many are at risk of being signed despite the grassroots victory that KILLED CDAs during Rick Perry’s special session of the Texas Legislature in July.

CDAs would charge Texans extremely high tolls to access public roads. The published figures for toll rates on two such deals in Dallas-Ft.Worth are 75 cents PER MILE, totaling $13 daily or over $3,000 a year in new taxes to get to work. One of the most insidious provisions include non-compete clauses that forbid the state from expanding or building roads within a certain mile radius of the toll road as a means to guarantee congestion on the free routes. CDAs also guarantee the private toll operator profit (one proposed amendment by Senator Robert Nichols tried to guarantee they’d never lose money), and they authorize toll hikes for more than 50 years.

In other words, CDAs equal government-sanctioned monopolies and wreak of sweetheart deals and cronyism. The Texas Attorney General, Greg Abbott, held up several contracts during the 81st legislative session, only to move them along since. Perry fondly refers to CDAs a “innovative financing,” but they’re more aptly called taxpayer rip-offs.

CDAs are also the mechanism through which the Trans Texas Corridor will be built. Two such contracts have been signed, and a third has been awarded but still not signed. In March of 2005, Perry inked a deal with Cintra for the development rights to the Trans Texas Corridor TTC-35, a super-sized toll road projected to be 1,200 feet wide, taking 146 acres of private farm and ranch land per mile of corridor for auto and truck lanes, commuter rail and freight rail lanes, telecommunications, and more. It’s been dubbed the biggest land grab and eminent domain project in U.S. history.

In March of 2008, Cintra snagged the CDA to build SH 130 segments 5 & 6, which is part of TTC-35. Cintra is a consistent player vying for many other Texas toll roads. ACS of Spain was awarded the development rights for TTC-69, but the CDA has yet to be signed. In fact last week, in spite of claims by Perry and lawmakers that the Trans Texas Corridor is “dead,” Perry-appointed Transportation Commissioner Ned Holmes just asked TxDOT to accelerate the TTC-69 CDA through the Attorney General’s office in order to ink the deal as quickly as possible.

Attorney General Abbott has a fiduciary duty to Texas taxpayers to hold-up these remaining CDA contracts indefinitely. Perry and pro-toll lawmakers have promised to re-authorize CDAs in the next legislative session. It’s Texans’ job to ensure that NEVER happens.

Link to article here.

Banco Bilbao Vizcaya Argentaria purchased Laredo National Bank in 2005, Compass Bank in 2007, and now Guaranty Bank in 2009. They’ve also partnered with China on a deal in 2006. Here’s the kicker, Banco Bilbao Vizcaya Argentaria is a financial advisor to the parent company that owns a 100% stake in Cintra, known as Grupo Ferrovial. Cintra owns the development rights to the Trans Texas Corridor TTC-35 project.

Seized Texas Bank Sold to Spanish Firm
Guaranty Deal Shows FDIC’s Willingness to Broaden Search for Buyers
By Binyamin Appelbaum
Washington Post Staff Writer
Saturday, August 22, 2009

The federal government is casting more broadly as it seeks buyers for a growing number of failed banks, including entertaining bids from foreign firms and seeking to attract new investors to the industry by easing restrictions.

The results were on display Friday, as regulators seized Guaranty Bank of Texas and immediately sold its branches, deposits and most of its assets to Spain’s Banco Bilbao Vizcaya Argentaria.

The failure of Guaranty, with $13 billion in loans and other assets, was the 10th-largest in U.S. history and the fourth-largest since the financial crisis began last year.

Regulators have sharply increased the pace of seizures this summer after months in which they left many unraveling firms untouched. The resulting spike in failures appears at odds with other signs that the economy is starting to mend, but analysts say the failures actually are an important step toward recovery. The seizure of a bank is in many ways the end of a problem, as the federal government absorbs the losses before selling the healthy parts to a new owner, setting the stage for renewed lending.

The greatest threat to that process is the dwindling supply of buyers. Guaranty is the 106th bank to fail since the beginning of 2008, and some healthy banks have sated their appetites for acquisitions. Regulators liquidated a Nevada bank last week after failing to find a buyer.

“The more institutions they are able to sell, the more market demand is met,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics.

Petrou said the government is moving too slowly to seize troubled institutions, allowing problems to fester and increasing the eventual cleanup costs. That adds urgency to the search for more buyers.

Casting a Bigger Net
The sale of Guaranty to BBVA is the first to a foreign buyer during this crisis. The Federal Deposit Insurance Corp., which sells failed banks, also is considering rules that would make it easier for private investors to participate in the bidding, which is generally restricted to healthy banks. The agency already sold BankUnited of Florida to private investors in May.

Proposed rules issued in July were widely panned by potential investors as overly restrictive, but the FDIC’s board is expected to pass a less onerous version when it meets Wednesday. The agency is juggling its need for bidders against a concern that investors will use acquisitions as personal piggy banks. The original proposal required buyers to hold stakes for at least three years and to maintain significantly larger cushions against unexpected losses than the prevailing standard. The rules also strictly limit the use of acquired banks as a funding source for other investments.

The FDIC’s board may also reduce the size of the required capital cushion, according to a person familiar with the matter who spoke on the condition of anonymity because the proposal is not final.

Guaranty Bank, based in Austin, has its roots in the nation’s previous banking crisis, the savings-and-loan failures of the late 1980s. The company was created from the pieces of several troubled Texas savings and loans, and then later expanded into California.

Guaranty’s troubles stemmed mostly from its mortgage lending business. The bank made billions of dollars in high-risk mortgage loans in booming markets such as California and Florida, and it invested billions more in loans made by other companies. Spiraling losses ate through the company’s capital cushion, leading it to issue a highly unusual public prediction earlier this month that it would be seized by regulators.

The failure of Guaranty is another black mark against the Office of Thrift Supervision, the federal agency that regulates banks specialized in mortgage lending. Most of the largest firms to fail during the current crisis were regulated by the OTS, including Washington Mutual, IndyMac Bancorp and now Guaranty. As with the other OTS failures, Guaranty’s troubles derived in large part from the sale of “option ARM” mortgages, adjustable-rate loans that were specifically structured to allow people to borrow more money than they could afford.

Option ARM loans made up about one-third of Guaranty’s portfolio of mortgage loans, according to the company’s financial disclosures.

Financial analysts considered it only a matter of time until a foreign bank would prevail in the bidding for a failed U.S. bank. Several foreign banks have large footholds in the United States, including HSBC, Toronto-Dominion and the Royal Bank of Scotland, which owns Citizens Bank. Toronto-Dominion has made bids for failed banks through its U.S. subsidiary, TD Bank, but analysts said many foreign banks have been preoccupied healing their own wounds.

BBVA and its major Spanish rival, Banco Santander, are notable exceptions. Spain’s unusually stringent banking regulations kept both banks relatively healthy, and they have emerged from the crisis looking to expand. Santander bought struggling Sovereign Bank last fall.

BBVA expanded its U.S. presence with its $9.6 billion purchase of Compass Bancshares in 2007, giving the company almost 600 branches from Alabama to New Mexico. The Guaranty deal gives the company more than 150 additional branches split between Texas and California.

The company also owns the largest bank in Mexico, Bancomer.

3 Other Bank Seizures
Regulators seized three other banks Friday night, including Ebank and First Coweta Bank of Georgia, and CapitalSouth Bank of Alabama. The failures comes one week after regulators seized Colonial Bank of Alabama in the largest failure of 2009.

When a bank fails, the FDIC repays depositors to the extent that the bank’s own coffers have been depleted. The money comes from a tax on the banking industry, not the general public, although the FDIC can borrow money from the Treasury Department if the need arises. The rising number of failures have drained the FDIC’s insurance fund. About $13 billion remained at the end of March, but the agency estimates it will spend $5.8 billion on the failures of Colonial and Guaranty alone.

The FDIC already has increased the assessments on banks significantly. The agency plans to collect $17.6 billion from banks this year, which it estimates is the equivalent of a 5 percent tax on industry profits. That is more than five times the amount collected in 2008.

The agency already has laid the groundwork for an additional special collection before the end of the year.

Link to article here. This article bills this leg of the Trans Texas Corridor TTC-35 project as a way to avoid congestion to Houston when the original sales pitch for the loop was to relieve traffic on I-35 (which the segment from Georgetown to the airport has not done). However, the first leg of SH 130 (the name of the TTC loop around Austin under the control of a foreign company for the next 50 years) is sooo empty, that a plane landed on it during peak traffic. It begs the question, if no one can afford to use it, why are we building it? We also need to ask: will it truly relieve congestion?

Construction revs up on new tollway toward Seguin
New section will offer less congested route to Houston.
Monday, August 17, 2009

You have to know what you’re looking for to see the beginnings of construction on yet another Central Texas toll road, at least at the part nearest Austin.

Crews have dug the holes and laid the foundations of some of the columns that will be the interchange between Texas 45 Southeast and the new, 40-mile-long extension of Texas 130 as it heads to Lockhart. Near Maha Creek, the median between the north- and southbound lanes of U.S. 183 is a mishmash of black-dirt hillocks as crews work on future bridges over the creek.

Further south, near where U.S. 183 crosses Texas 21, owners of an Exxon station recently moved it several hundred feet east of U.S. 183 to make way for the wide tollway and access lanes to come. And down near Seguin, where Texas 130 will meet Interstate 10, concrete pillars for an interchange are poking out of the ground.

Construction of Texas’ first public-private toll road began quietly several weeks ago, with a lack of fanfare given all the controversy such tollway agreements have generated over the past five years. A consortium called SH 130 Concession Co., led by Spanish toll road operator Cintra and Zachry Construction, is financing the $1.35 billion project and will operate it (and, it hopes, profit from it) over the next 50 years. It should open to traffic in 2012.

Just two other public-private tollways in Texas are in the works, both at least two years further back in the development process and unlikely to break ground soon. Cintra is the lead actor on both projects, which involve adding toll lanes on Interstate 820, Texas 183 and Texas 121 in Tarrant County and on the LBJ freeway in Dallas.

The new section of Texas 130 (the Texas Department of Transportation built the first 49 miles from Georgetown to Mustang Ridge) will offer a new possibility: getting from Austin to Houston without having to drive through the traffic lights and growing congestion on Texas 71 in Bastrop. But that may be a tough sell.

From east of the Austin airport, it’s about 85 miles on Texas 71 to Columbus, where Texas 71 meets Interstate 10. Take Texas 130 and I-10 there instead, and the trip will be almost 135 miles, at a cost of more than $7 for a car, close to $30 for big trucks, plus extra gasoline or diesel.

Even with higher speed limits — as much as 80 mph on the tollway — that alternative is unlikely to entice many people. It might make sense for people bound for Corpus Christi and the Rio Grande Valley.

But Texas 130’s main reason-to-be was as a bypass of Interstate 35 in the San Antonio-to-Georgetown corridor. So far, traffic on the 49-mile piece east of Austin that opened in 2006 and 2007 has been light, about 9 percent below projections this budget year. And for an 18-wheeler to take the entire 89 miles, once it’s open, the one-way price will be more than $50.

Stout. Truckers may need a bypass when they see that, the kind that requires a surgeon.

Remarks by Kay Bailey Hutchison Officially Announcing Her Historic Campaign for Governor

Hans Klingler, Communications Director

Austin, TX – Officially announcing her historic campaign for governor, Kay Bailey Hutchison delivered the following remarks as prepared for delivery in La Marque, Texas, at 8:00 a.m. CT:

“It is with pride and humility for history that I announce today that I am a candidate for Governor of Texas.

“Texas is like no other place on earth.  It started on March 2, 1836 when our forefathers declared an end to tyranny with the Texas Declaration of Independence.  Among the signers was my great, great grandfather, Charles S. Taylor.  The great men who signed that document put their lives on the line, and their fate in the hands of God.  Why did they do it?  Because they yearned for freedom and they believed in Texas.  Today, 173 years later, I’m running for Governor because I believe in Texas.  And I know we can do better.

“Let me start by saying this about Rick Perry.  He’s a dedicated public servant.  I know he loves Texas.  But now he’s trying to stay too long – 14 years, maybe longer.

“And after ten Perry years, where are we?

“Property taxes?  Highest in the country.

“State debt?  Doubled.

“Tuition?  Skyrocketing.

“Dropout rates?  Among the highest.

“Uninsured children?  Leading the nation.

“Private property rights?  At risk.

“Ten years is enough.  We can do better.

“In my administration, we will tackle these challenges.  We will be specific, and direct. We will lay out a clear, conservative vision for the future of Texas.  As Governor, I will focus on five areas:  Fiscal policy, education, transportation, health care and government reform.

“For starters, I will spend less, tax less, and borrow less.  Just look at Governor Perry’s new tax on business.  It’s been called a ‘job killer’.  More than 200,000 Texans lost their jobs this year.  In the month of June alone, Texas lost more lost jobs than any state but one.  And now we have the highest unemployment in the region.  The Governor said he was ‘proud’ to sign his record tax increase.  Well, I don’t call a job killing tax increase something to be proud of.  I call it a tragic mistake.

“Taxes have increased and government has grown.  Over the last ten years, Texas has added 30,000 new workers to the state payroll.  And to make a political point, we turned down half a billion in federal money, sacrificed it to other states, and now we’re borrowing three times as much and sticking Texas business with the tab.  That’s not conservative.  That’s irresponsible.  We can do better.  It’s time for results, not politics.

“As governor, I want to help create an education system that prepares our children for the jobs of tomorrow.  To begin, we will no longer accept one of the highest dropout rates in the country.  Our students deserve quality teachers who are well educated and trained, and schools where bad teachers aren’t just transferred, but let go.  But good teachers should be rewarded and they should have continuing opportunities for professional development.  I will propose incentives for math and science teachers to earn a degree in what they teach.

“In Texas, discussion of basic education should no longer be K through 12, but pre-K through 14.  We have to look for ways to support early childhood education efforts on the front end.

“And every child should have the support and encouragement to attend college.  But those who don’t, must be trained with marketable skills to find a good job.

“Ignoring these fundamental challenges is a recipe for mediocrity.  Or even worse: failure.  We can do better.  And our future depends on it.

“Today, TXDOT is the most arrogant, unaccountable state agency in the history of Texas.  I will reform and expand the Commission.  It should be more representative of all regions of our state.  And it will seek and embrace local input.  It is time to return to our tradition of free, quality highways and roads.

“Then there’s the Trans-Texas Corridor.  The biggest land grab in the history of Texas.  And the Governor wanted to turn it over to a foreign company to build toll roads.  Well, they can call it the Trans-Texas Corridor.  Or they can call it something different.  But here’s what I will call it when I take the oath of office, dead, buried, history.  We can do better.

“We must build a health care system that will leverage the vast resources of our state to bring health care options to the uninsured, and assistance to business owners so they can afford to provide it.  And know this, while I’m in the Senate, I will spend every moment fighting this massive government takeover of our health care system.  If you want to know what health care in Texas will look like when I’m governor, just imagine the exact opposite of what is proposed in Congress today.  We will offer carrots, not sticks.  Help, not fines.

“There’s another reality here in Texas.  Too often our state government is doing what it shouldn’t, and isn’t doing what it should.  When we have systemic abuse at the Texas Youth Commission, and fight clubs at state schools for the disabled, the last thing we need is government mandating vaccines for 6th grade girls or playing politics with a great university like Texas A&M.

“We need results, not politics.  And that starts with term limits for Texas governor.  For any Governor, eight years is enough.  We can’t afford fourteen years of one person appointing every state board, agency and commission.  It invites patronage.  It tempts cronyism.  And it has to stop, now.

“As Governor I will give our agencies a top to bottom scrubbing.  I will appoint a Commission 2025 – respected scholars, business, agricultural representatives, and community leaders – to look at Texas state governance.  What we should keep, what should go, and what should change.

“Finally, let me say this to every Texas Republican.  For the last decade, the Republican Party in Texas has been shrinking.  We’re losing elections we used to win easily.  In Austin, we’ve gone from 88 seats in the House to 76 – just two away from losing the Texas house.

“As Republicans, we can continue down the road of shrinking majorities.  Or we can inspire, unite, and grow our party.  Rebuild it from the bottom up, and reach out to Texans and say, ‘If you are for limited government, lower taxes and less spending, we want you in the Republican Party, we welcome you and want you to be active in our cause.’  That’s how we will win elections, keep the majority and be worthy to lead our great state.  And that’s what we’re going to do if I’m heading the Republican ticket.

“It’s time for a governor for all Texas.  Join me and together we will make the Texas of tomorrow everything our children deserve.

“This is a special time in Texas.

“A time for principled leadership.

“A time for reform.

“And a time for results.

“We can do better.

“And together, we will.”

U.S. Senator Kay Bailey Hutchison

It was beautiful to hear a candidate for Texas governor actually take-on the detested and failed policies of Rick Perry in a crowd full of those who make a living off such policies. Senator Kay Bailey Hutchison finished off the 12th Annual Transportation and Infrastructure Summit in Irving Friday with a speech outlining her positions on transportation.

Hutchison head and shoulders above the crowd
Don’t let Hutchison’s sleight build and gracious manner fool you. She’s as tough as nails and made some very bold statements in a crowd with a vested interest in a road-building slush fund, including a few jabs at Perry whom she referred to as the “Big Kahuna of tollways.” She repudiated tolling existing freeways calling it DOUBLE TAXATION and touted her many amendments to prevent TxDOT from doing so.

Her major theme was what she called highway fund “parity.” Texas has been what’s called a donor state, meaning Texas “donates’ some of its federal gas taxes collected to other states. Since Hutchison was elected to the U.S. Senate in 1993, Texas’ share of its federal gas taxes has gone from 73 cents of every dollar up to 92 cents of every dollar sent to Washington. With Texas handling 20% of the commerce coming through U.S. ports, it’s past time for Texas to get 100% of its gas taxes back.

In fact, Hutchison recently introduced legislation to allow Texas and other states to opt-out of the federal highway trust fund. She then slammed Perry’s Trans Texas Corridor as the biggest land grab in Texas history, calling it ill-conceived and an abuse of private property rights.

Hutchison also railed against Perry’s beloved CDA contracts because they basically create permanent toll roads (50 year contracts) and make the taxpayers pay a penalty to the private toll operators if any new roads are built surrounding the tollway.

Her sentiment is unequivocal: “I disagree with it 100%.”

She also decried the recent payment of $3.6 million to Cintra, the Spanish company that was the losing bidder on the hotly contested SH 121 tollway, which eventually was wrested from foreign-ownership by the public tollway authority. Hutchison said: “I call it a tax on arrogance.”
Perhaps most importantly was her clarification that the $60 million she helped secure for environmental studies for I-69 is for a FREE interstate within the existing right of way already purchased, not a continuation of Perry’s universally despised Trans Texas Corridor concept that would make I-69 a foreign-owned tollway.

Her parting words give the clearest indication as to how she would govern: “I will work with you, not dictate to you.”

Now that would be like a breath of fresh air to clean-up the stench coming from Perry and his highway department.

Link to Terri Hall’s Examiner article here.

“Transportation should be about people, not projects,” advised Congressman John Carter, who addressed the 12th Annual Transportation and Infrastructure Summit in Irving today. I couldn’t agree more. However, when I asked him afterwards what his position was on toll roads and the sale of our infrastructure to foreign entities through these public private partnerships (or PPPs), his impassioned speech ended-up just that, a speech.

Anyone with a pulse knows Rick Perry’s push for privatizing public roads just got soundly defeated during the special session in July. Carter repeatedly called himself a Texan first. Congressman Carter, Texans DO NOT want their roads sold to Spain! It’s breathtakingly UN-Texan! While he was quick to disavow the Trans Texas Corridor (which affects his district), he was more than happy to stick it to urban commuters with 75 cent a mile toll taxes or $13 a DAY to get to work through PPPs. It’s the “not in my backyard” syndrome that pro-tollers routinely use to pit rurals against urbanites.

When billions in gas taxes and public money are pouring into these PPP deals, the sale of Texas highways impacts EVERY Texan. This urban-rural divide has got to STOP. We’re running out of money for ANY free roads in this state (if we’re not there already), and rural lawmakers have the most to lose. They’re facing the very real possibility that NO funding will trickle down to their areas as urban areas gobble up ALL available funds for highly leveraged toll roads.
Carter noted the summit wasn’t about adopting European or Pan-American transportation policies, but about Americans creating a uniquely American concept of transportation. Newsflash: road privatization started in Europe, and it’s failing in Europe. Now they’re transporting their risky leveraged debt, pension-raiding schemes overseas to spread the misery around! Investors write themselves sweetheart deals, thanks to their willing accomplices in government, at the expense of the taxpayers.

Congresswoman Eddie Bernice Johnson fared even worse on the taxpayer index. She said: “Nobody wants to do anymore taxes. There are taxes and there are tolls, We have to do one or the other. We can’t build roads without tolls and public private partnerships.”

Whoa, oh yes we can build roads without tolls. Dust off the Texas Transportation Institute’s report that said precisely that! To summarize, it stated we could raise the gas tax 8 cents and index it to inflation or simply index the gas tax and we wouldn’t need to do a single toll road in the state of Texas.

Toll are taxes. They think we’re stupid and can’t figure that out. Politicians tell you with a straight face that they’re NOT raising taxes when they charge you a toll to access public roads (built with gas taxes, stimulus funds, and heaps of public money), and many of which are existing roads you’ve already built and paid for! I’m sick and tired of the mentality in Austin and Washington. They won’t fight for something that’s politically tough, so instead they shove the most EXPENSIVE transportation tax down Texans throats like it’s somehow a more palatable solution.

Congressman Ralph Hall and Pete Olson fleshed out the panel, both pro-toll. Most surprising of the bunch was Olson’s support for Perry’s “innovative financing” schemes when he’s from Fort Bend County where there is tremendous opposition to both the Trans Texas Corridor (or TTC) and the Grand Parkway, which is being considered for privatization and likely a leg of the TTC.

The keynote speaker, Congressman John Mica of Florida, ranking member of the House Transportation Subcommittee, floated a proposal to abolish the federal gas tax and levy a sales tax on the total sale price of gasoline each time we fill-up at the pump. He, too, noted that any straight gas tax increase is a non-starter. Are you beginning to see it’s because they want to find excuses to enact new taxes that charge you much higher transportation taxes?

Even more frightening is the reality that the road building industry is seeking to raise a whole litany of taxes in order to fund roads. Judging by the plethora of sessions dedicated to financing options (code for taxes), taxpayers are about to be hit with a tidal wave of higher taxes. With diversions of the gas tax still alive and well and with a highway department that’s run amok, our elected representatives clearly need a reality check.

Perhaps another front in the heated tax revolt brewing all over the country is necessary to help them get the message that taxpayers first demand accountability with the money they already take from us, then a curb on tolling, and lastly that they properly fund roads with the MOST AFFORDABLE solution, like indexing the gas tax.

Link to article here.

Wanna know why there’s no money for roads? Here’s your answer…
Hold your breath or at least resist the urge to throw things at your computer or kick the dog…despite public opposition, Texas Senator John Carona and State Rep. Charlie Geren carried the bill to lift the cap on payments to losing bidders on certain toll contracts called Comprehensive Development Agreements or CDAs. The original limit was $1 million, then in 2007 it was reduced to $250,000, and now since SB 882 passed, there is no cap on how high these payments can go. The amount of taxpayer money is solely at the discretion of government bureaucrats and politicians who bow to foreign interests, like the Spanish firm Cintra. So we’re paying LOSERS for not even building the roads! I warned you…the cronyism is only getting worse, and it’s at the expense of the taxpayers!
Thursday, Aug 13, 2009

Spanish firm to receive $3.6 million after losing road project