Rep. Pasley files bill to finance big transportation projects

FRANKFORT --  A Central Kentucky legislator, with the support of House Democratic leaders, is pushing a bill that would set up a state authority that could use tolls to finance so-called transportation mega-projects, such as two new Ohio River bridges and changes in Spaghetti Junction near downtown Louisville.

The bill filed Friday by Rep. Don Pasley, D-Winchester, addresses similar concerns but differs from legislation offered earlier this year by Senate President David Williams, R-Burkesville.

Co-sponsors of Pasley’s bill are the five House Democratic leaders and House budget chairman Harry Moberly Jr., D-Richmond.

A major difference between Pasley’s and Williams’ bill is that Pasley’s House Bill 689 would create one state authority  “to implement and facilitate the financing of major transportation projects and to hold ownership of projects."

“It would be loosely modeled on the Kentucky Housing Corporation,”  Pasley said.

The authority could issue bonds and assess tolls on a project.  Tolls on each project would be in an amount adequate to retire the debt on the project.

Williams’ proposal in Senate Bill 7 would allow creation of local infrastructure authorities to manage big transportation projects.  Local governments could form their infrastructure authorities; then the legislature would have to approve a charter issued by the governor that would tell them whether they could use tolls or not.

Pasley’s bill defines mega-projects as those that cost at least $500 million. They would have to be developed in coordination with the state’s six-year road plan.

The state authority in Pasley’s bill would be authorized to implement tolls and issue bonds, but the debt incurred would not count against the state’s.

When the current state toll road authority issues bonds, its debt is not separated from the state’s.

Williams said he wants to make sure any debt from bonds used for such projects would not count against the state’s bonded indebtedness. “I’d  be suspicious or suspect that we could have a dedicated fund source that wouldn’t count against the state cap,” he said.

Pasley’s authority would have 11 members: the finance secretary, the transportation secretary, representatives of the Kentucky Association of Counties, Kentucky County Judges-Executive Association and Kentucky League of Cities appointed by the governor, and six citizen members -- four appointed by the governor, one by the House speaker and one by the Senate president.At least two of the six citizen members must be familiar with road and bridge design.

Pasley, who said he has worked on the bill for months, said he decided to proceed differently than Williams’ bill because the high-cost projects involved need “a certain amount of expertise in not only dealing with transportation but with bonds.”

Asked if it has the backing of Gov. Steve Beshear and his administration, Pasley said, “We will have to wait and see what the governor’s position on it is.”

UPDATE:  Beshear spokeswoman Vicki Glass said in a statement that the governor "commends both the House and Senate for looking at the complex issue of how to fund the mega-projects.

"The administration will be taking a close look at both pieces of legislation.  Gov. Beshear continues to feel that the federal government has to play a role in helping fund these mega-projects.

"States like ours don't have the resources to build these mega-projects without the federal government becoming part of the solution.  They may not be the entire solution, but they must do their part so that the mega-projects can move forward.

"We will continue to look for creative financing solutions to the funding issue.  All options have to be on the table."

Williams said he has not yet seen Pasley’s bill but  “I admire his work.  He acknowledges something that the governor needs to acknowledge, and that is with certainty those bridges cannot be built without tolls.”

The Senate leader said he does not know if Pasley’s bill will pass the House and Senate unless the governor gets behind it.

He also said he is disappointed that his bill has been portrayed as a tolls bill to pay for the bridges.  “It has been irreparably damaged,” he said.

The Louisville bridges project is expected to take 17 years and cost $4.1 billion.  The state's cost for the project is $2.9 billion and is jointly being undertaken by Kentucky and Indiana. It consists of six highway sections, including construction of two new, six-lane bridges.

--Jack Brammer

Comments

[Jay]

The Brooklyn Bridge was built in 13 years in 1870. The Golden Gate Bridge in 4 years in 1933. The Empire State Building was built in 15 MONTHS in 1930. And these bridges are going to take more than 17 years??? Doesn't make sense.

[Mountain Parkway]

Don't we still have the same mechanism in place that built all the toll roads, like the Mountain and Blue Grass and Daniel Boone and Western Kentucky? Why not just revive that?

[hwb43]

I have the solution. Why not tax western, eastern and northern parts of Kentucky. Then we use western and eastern people as serf labor to build them. This will give them jobs and something to do other then drugs. I am sure there is some cash we could take from the I-66 project.

All this should be enough to rebuild the whole city of Louisville. While the rest of the state lay in ruins. But hey Louisville is all that matters, right?

[Frank]

HWB43,

I've got a bettere idea, how bout us Louisvillians get the same return on our tax dollars as other counties, esp eastern KY counties, then you can see what ruins look like. For too long Louisville has dolled out the tax dollars to keep the other 119 counties fat and happy but when it's time to pony up to improve infrastructure, which will ultimately benifit an entire region, all we hear is bitching & moaning.

Do us a favor and just say thanks next time.

[kmb]

Dear Frank,

Now you know how we feel. We give our coal severance taxes to pay for some bridge that carries people in Louisville. These same bridges carry people that will protest against the mining and progressive business tactics that in fact paid for the bridge they walk or drive across each day.

So why not just stay the hell out of our business and we will stay out of yours.

Sincerely,

Other 119 Counties

[kmb]

Dear Frank,

Now you know how we feel. We give our coal severance taxes to pay for some bridge that carries people in Louisville. These same bridges carry people that will protest against the mining and progressive business tactics that in fact paid for the bridge they walk or drive across each day.

So why not just stay the hell out of our business and we will stay out of yours.

Sincerely,

Other 119 Counties

[kmb]

Dear Frank,

Now you know how we feel. We give our coal severance taxes to pay for some bridge that carries people in Louisville. These same bridges carry people that will protest against the mining and progressive business tactics that in fact paid for the bridge they walk or drive across each day.

So why not just stay the hell out of our business and we will stay out of yours.

Sincerely,

Other 119 Counties

[Kelsey]

And dont forget, those same overpriced bridges to Indiana take our tax dollars to help Pay for Indianas Schools, Health Care, Education, Roads, etc. So the only fair and truthful answer to all your concers are.
Let The People Vote.
Go Obama.
kelsey.

[Kelsey]

I read a study done by LRC ordered by David Williams that a friend of mine that works there gave me. The results are that if we put tolls on the Ohio Bridges in Louisville it would take over 40 years to pay for the cost, then the maintaince would be more than the cost of the original bridges. So Williams said there will be no bridges with tolls in my life time, built over the ohio river. But the same study says that if there was a Casino in Louisville the new bridges would be paid for in less than 5 years, without tolls. I understand from my friend in LRC that the Cssino issue has caught David Williams attention.
Go Obama.
Kelsey.

[Earth To Kelsey]

Casino revenues won't go into the Road Fund, dumbarse. They will go into the General Fund. So casino revenues won't pay for the bridges.

[honestabe]

Kelsey, you dont HAVE a friend in the LRC, or anywhere else for that matter....