privatization

KPMG the large Swiss-based international accounting and management consulting firm has been selected by the Ohio state DOT to conduct a study of alternatives to the state turnpike commission for operation of the Ohio Turnpike.

The Federal Highway Administration has now done two 180 degree turns on the trivial issue of whether federal research grant money amounting to $1.5m can be used to study options for the Ohio Turnpike that include a longterm lease/concession, public-private partnership or 'privatization.'

They gave the OK in granting the money earlier in the year. Then two weeks ago at the behest of leftist politicians wanting to keep the Turnpike a unionized state enterprise they effectively nixed the grant saying it couldn't be used for study of privatization.

We've given too much publicity here to schemes for mileage-based user fees (MBUFs) or vehicle-miles traveled (VMT) charges. Those acronyms MBUFs or VMT fees are just proposals for comprehensive tolls - tolls on virtually all roads. We say we've given too much publicity to them, not because they aren't important, or don't make sense as substitutes for the old fuel taxes, but because they aren't going anywhere.

The New Jersey Turnpike has reached a settlement with two unions representing its 800+ toll collectors that provides for significant pay cuts and only guarantees jobs pending implementation of all-electronic tolling. In return the Turnpike will not pursue outsourcing or privatization of cash toll collection services.

All indications are the NJ Turnpike board of commissioners will vote down the Christie administration's plan to outsource toll collection services and retrench some 800 staff toll collectors.   The plan will be voted on for the first time Friday, at a special meeting, according to the  Transportation Commissioner and Turnpike chairman James 'Jim' Simpson.

The union representing toll collectors on the New Jersey Turnpike (called IFPTE Local 194) is seeking an injunction in federal court to prevent any further move to outsource toll collection services without the requirement that union members have job preference - called the 'right of first refusal' of jobs.

Over the past week Ohio reporters kept writing that Governor John Kasich would announce a move to privatize the Turnpike in his budget today.

They were wrong.

His staff are looking at privatization of the Ohio Turnpike, says incoming state governor John Kasich. But capital markets at this time may not support a good deal for the state, he's saying in answer to reporters' questions. "Everything is on the table," he said this week.

Central Texas RMA, one of the smaller but more innovative public toll authorities in Texas is pioneering a model for hiving off transponder issuance and account management with procurement of an Independent Customer Toll Account Manager (ICTAM.) They're stressing the "Independent".

Both contenders for governor in Pennsylvania say they are "open to" abolishing the Turnpike Commission - the Republican Tom Corbett saying he'll look at "selling public assets such as the Pennsylvania Turnpike" to generate funds for public roads, the Democrat Don Onorato saying he'd support merging the Turnpike into the state DOT if it would save the state "big money." Everything is "on the table" the Democrat candidate says.