Don't blame privatization for TXDOT's corruption

[By way of Sal]

From thenewspaper.com - a transportation policy blog:

GAO Questions Wisdom of Public Private Partnerships

Government Accountability Office testimony warns of need to better assess the true cost of privately operated toll roads.

The Government Accountability Office last week questioned the wisdom of using public-private partnerships to build and maintain toll roads. GAO's Director of Physical Infrastructure issues, Jay Etta Z. Hecker, summarized the congressional watchdog agency's work in testimony before a US Senate Finance subcommittee hearing on Thursday that focused on the cost to the public of privately operated toll road leasing arrangements.

Broadly speaking, these arrangements allow private companies to lease existing roads in return for the ability to collect toll revenue for a fixed term that can last up to 99 years. In some cases, these companies will offer local politicians billions of dollars in up-front cash payments for leasing rights. The private company would then be responsible for maintaining the road. In other cases, the private company would build and own entirely new roads, delivering significant new highway capacity to the public in return for significant profit potential.

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You can read the rest of the GAO report here.

I would hope that everyone doesn't take as a lesson from our current toll road nightmare that all privatization or public/private ventures are bad. Getting the private sector involved in public works - if managed correctly and ethically - can save the taxpayer billions. The real problem here is plain old-fashioned corruption.