New York Gov. David Paterson has created a commission to study the possibility of leasing the state’s infrastructure and other assets, such as public parks and beaches, to private investors.

Paterson’s executive order to create the commission on Thursday, Oct. 2, has truckers wondering how far the governor will go to toll more roads and bridges or lease valuable assets to profit-driven companies.

The commission will study public-private partnerships. These are typically deals that allow the private sector to finance infrastructure projects and be reimbursed with tolls or tax revenue.

“My concern is that they’re trying right now to force trucks onto the main interstates,” trucker and OOIDA member Lou Esposito of Duanesburg, NY, told Land Line.

“They’ve already increased tolls 35 percent on the Thruway, so that makes it look more attractive for these partnerships.”

Paterson has ordered the commission to specifically study whether public-private partnerships would be good for New York.

“Public-private partnerships are not the only answer, but we need to honestly assess whether they can be part of the solution,” Paterson stated in a press release.

“I believe the private sector can be a source of innovation, allowing us to increase the value, efficiency and safety of assets like our aging infrastructure system, and I look forward to receiving the commission’s recommendations.”

Truckers and other highway users remain skeptical of PPPs because they often involve toll increases and leave the public without a voice.

“I’m surprised that somebody is taking up the mantle of public-private partnerships after the recent failures in Pennsylvania and on Wall Street,” OOIDA Director of Legislative Affairs Mike Joyce told Land Line, adding that Pennsylvania Gov. Ed Rendell’s proposal to lease his state’s turnpike to private investors lacked legislative support.

The 11-member commission created by Paterson is charged with submitting a preliminary report within 90 days and a full report in 180 days.

PPPs in New York may be considered for any government-owned asset, including roadways, bridges, tunnels, water and sewer systems, and airports. Some news reports have cited public parks, golf courses and beaches as possible candidates for privatization.

Esposito and others who travel New York highways are worried that their businesses will be hit with cost increases if the privatization deals materialize. He is specifically worried about the tolling of roads that are currently toll free and paid for through taxes.

“You have I-84, which is part of the (New York) Thruway. Does that mean that they will toll I-84 when they sell the Thruway?” Esposito asked.

Paterson said the commission must include adequate government oversight in any PPP deal, including performance standards, employee protection, and the regulation of tolls and user fees.

Paterson said PPPs must not contain “non-compete clauses” such as the one written into the 2006 lease of the Indiana Toll Road by Indiana Gov. Mitch Daniels.

The non-compete clause in Indiana declares that toll-free roadways in proximity to the toll road may not be expanded or improved unless the for-profit tollway operators agree to the plan.

– By David Tanner, staff writer
david_tanner@landlinemag.com