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Rendell will explore leasing Pa. Turnpike
Tuesday, November 21, 2006

HARRISBURG -- Before the Legislature enacts higher gasoline taxes or motor vehicle fees to solve the money crisis facing roads, bridges and mass transit, Gov. Ed Rendell wants to take a look at leasing the 500-mile Pennsylvania Turnpike to a private operator.

He told reporters yesterday that initial talks with transportation consultants indicate that the state could get $3 billion to $10 billion through a long-term lease to a private company.

In early 2005, Mr. Rendell created a transportation crisis funding commission, which this month delivered a report with difficult options: a 12.5-cent per gallon increase in the 31-cent a gallon gasoline tax; higher car registration fees or driver's license fees; and using sales taxes or personal income taxes to create a more predictable funding source for repairing roads and bridges and for erasing deficits in budgets of mass transit agencies in Philadelphia and Allegheny County.

"Private-public partnerships'' were also mentioned, where the state would approve a 30-year or longer lease of some roads, such as the turnpike, to a private operator.

Mr. Rendell said that Macquarie, an Australian company, might be interested in leasing the turnpike.

He said he's also had contact from the New York investment firm of Goldman Sachs about the possibility.

If there is such a lease, the governor said the state would retain some control over tolls and repairs.

"Doing nothing [about transportation repairs] is not an option," he said.

"How we reach our goal of significant improvement in transportation is something we have to work out. There is no easy way out."

Leasing the turnpike to a private company is also something that House Speaker John Perzel, R-Philadelphia, said should be considered.

"I don't see the Legislature willing to raise gas taxes or any other tax" to raise the $1.7 billion a year that the transportation study panel said is needed, he said.

First published on November 21, 2006 at 12:00 am
Bureau Chief Tom Barnes can be reached at tbarnes@post-gazette.com or 717-787-4254.
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