Indiana

JLT, ?Let?s Make a Deal?

By Abdul Hakim-Shabazz

Democratic gubernatorial candidate Jill Long Thompson says she won’t break the $3.8 billion lease of the Indiana Toll Road, but she says she will try to renegotiate it if she can.

Thompson made her comments by announcing she would take a second look at all of the state’s privatization contracts. She says Lt. Governor Candidate Dennie Oxley would spearhead the effort.

JLT says the Toll Road lease as well as the privatization/modernization of FSSA intake and eligibility were bad deals for the taxpayers and that she would try to cancel or renegotiate them. She said everything was on the table and she would make the best decision based on what was most cost effective.

JLT did not say all privatization was bad and said she could support privatization for some services and equipment manufacturing, but she would not privatize the administration of state programs.

JLT said after 20 years the Toll Road consortium will make a profit and that money should be going to the state. She downplayed the fact that consortium would also assume the costs and maintenance of the Toll Road.

A spokesperson for the Governor’s Office said the Toll Road lease has brought in hundreds of millions of dollars for state transportation projects and the consortium is investing more than $400 million in making improvements.

Frankly, absent some major breach of the agreement or serious meeting of the minds by the two parties, I don’t see how the Toll Road lease can be renegotiated. And if it were, I hope someone can find the $51 million they’ll have to pay for every year the lease is shortened.

Full post as published by Indiana Barrister on August 20, 2008 (boomark / email).