Rendell releases report on turnpike lease
An investment bank hired by the State of Pennsylvania has recommended that the state lease the Pennsylvania Turnpike.
A study by Morgan Stanley & Co., unveiled Monday by Gov. Edward G. Rendell, found a lease “likely to generate the highest level of funding to repair roads and bridges and avert drastic public transit cuts.”
Two other options were also looked at by Morgan Stanley:
* Creation of a new, tax-exempt, public benefit corporation under IRS code 63-20, which would allow for private management of the turnpike.
* A proposal by the Pennsylvania Turnpike Commission that includes new tolls on Interstate 80 and a new “congestion tax” that would be collected at the most heavily used turnpike exits.
Rendell said the study found these options, while feasible, are unlikely to bring enough revenue to tackle all road, bridge and transit needs, and other revenue sources would likely be need to fully fund all transportation needs.
“The Morgan Stanley analysis makes it clear that the turnpike can be the key to solving our transportation funding crisis today and for generations to come,” Rendell said.
Rendell is one of several witnesses slated to discuss so-called “public private partnerships” before the House Subcommittee on Highways and Transportation Hearing on Thursday.
The full text of the Morgan Stanley report can be found at https://www.rideonpa.org/transit/lib/transit/Financial_Analysis_Book_052107.pdf.
Rendell releases report on turnpike lease
