Illinois looks at leasing tollways

Font Size:

By Matt Adrian | Sunday, May 28, 2006 11:58 PM CDT | () comments

SPRINGFIELD — Illinois officials are looking toward privatization to pump more money into state coffers and raise funds for everything from education to road repair.

Last week, Gov. Rod Blagojevich suggested a sale or lease of the Illinois Lottery to put more money into the classroom. This week, a Senate committee will begin holding statewide hearings into privatizing Illinois’ 274 miles of toll roads.

The deal could raise $14 billion for various state services ranging from repairing roads and bridges to shoring up the state’s employee pension system.

“Through this innovative and increasingly common strategy, Illinois will undoubtedly be able to move forward to construct and rebuild roads and bridges and shore up our mass transit and passenger and freight systems,” said state Sen. Jeff Schoenberg, D-Evanston, who will be leading the hearings, in a prepared statement.

Skeptics are concerned that turning the tollways over to a private company could lead to higher tolls and fewer repairs.

“I’m starting out this discussion with huge reservations,” said state Rep. Bob Pritchard, R-Hinckley. “I just don’t see where it is a positive for the state to be selling off this kind of asset and then worry about the maintenance; worry about the coordination of repairs with other state road systems and to worry about what happens to the users of that toll road.”

Schoenberg wants any potential deal to set aside money for defraying any toll increases.

Leasing state assets is an attractive option for state officials because it creates immediate cash flow without raising income or sales taxes, which have been guiding principles of the current administration.

Leasing toll roads is not a new idea. The City of Chicago has leased the Chicago Skyway to private investors for $1.83 billion. Indiana has brokered a $3.85 billion agreement to lease its tollway system.

Other states like New Jersey and Pennsylvania are also considering privatization of tollways.

Business Leaders for Transportation, a Chicagoland advocacy group, reports that at least 23 states have legislation allowing these public-private partnerships to be created for infrastructure improvements.

However, attempts to lease Illinois state property are not always successful. Blagojevich attempted to lease the James R. Thompson Center in Chicago for an upfront cash infusion. The deal was struck down by Attorney General Lisa Madigan, who argued that the vote authorizing the deal was not valid.

The first public hearing will be 9:30 a.m. Wednesday in the Thompson Center. Another three hearings will be held around the state.

Matt Adrian can be reached at matt.adrian@lee.net or (217) 789-0865.