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HIGHWAY FINANCE: Private toll roads proposed

Panel told I-15 toll lanes could fund highway construction

CARSON CITY -- Private construction and operation of toll roads, including toll lanes along Interstate 15, might be the only option Nevada has to finance highway construction, former U.S. Rep. Dick Gephardt of Missouri told legislators Thursday.

Politicians and voters will not support gasoline tax increases to fund new highway construction because gasoline prices already are at near record highs and probably will climb, Gephardt said during the first meeting of an interim legislative subcommittee studying transportation issues.

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  • But in response to questions, state Deputy Transportation Director Scott Rawlins said his agency has not completed studies that show the cost of constructing toll lanes on I-15, or how much of a toll would need to be collected.

    "We haven't gotten to that detail yet," he said.

    Rawlins said the state is working with California Department of Transportation officials on a plan to create toll lanes that begin on I-15 in California and run through Las Vegas and Mesquite.

    He added there might be a toll lane for passenger cars, as well as one for commercial vehicles.

    But he pointed out toll roads are not allowed under state law and there remains a "strong aversion" among legislators and citizens toward them. The idea died in the Legislature earlier this year.

    Based on his talks with economists, Gephardt said the price of a barrel of oil, which has topped $90, will increase to more than $200. That leaves higher gasoline taxes out as an option for highway construction funds, he added.

    Instead, he urged legislators to look toward toll roads and other public-private partnership arrangements to finance highway construction.

    "It may be there are some (toll) projects that could be carried out in this area (Las Vegas), as well as in the northern part of the state," said Gephardt, now general counsel for the Goldman Sachs investment company.

    There was none of the debate that occurred elsewhere on the potential conflict with Goldman Sachs advising states on how to get the best price from investors for roads and also being an investor itself, hoping to pay a low price for roads or other government infrastructure.

    The subcommittee meeting was teleconferenced between Las Vegas, where Gephardt spoke, and Carson City.

    During an appearance before the Legislature in May, Gephardt said he saw toll roads as having "limited applicability" in Nevada.

    He said then that he had visited Nevada frequently and believed that toll roads might be feasible for trucks along Interstate 80 in Northern Nevada and for passenger cars on freeways in Las Vegas. He said privately financed lanes on I-15 between Los Angeles and Las Vegas might relieve congestion for tourists.

    Senate Minority Leader Dina Titus, D-Las Vegas, said Thursday that legislators are "a long way from saying that toll roads are the way to go."

    She said the subcommittee also should look at light rail and other options to relieve congestion in Southern Nevada.

    Based on her experience with commissions that include California officials, Titus said she senses they are reluctant to consider toll roads and other improvements to I-15 because the thoroughfare is seen as a "gambling road."

    Sen. Randolph Townsend, R-Reno, said people should not be misled into believing "toll roads solve all the problems."

    He added legislators need to finance highway construction needs before current legislators are prevented from running again in 2010 because of term-limit requirements.

    "This would become a big problem for new folks," he said.

    Gephardt explained to legislators that modern-day tolls are not paid by motorists who slow down and toss coins into a hopper. Instead, people who regularly use toll roads acquire a card that resembles a credit card.

    They attach the card to their windshield. When they drive onto a toll road or lane, an electronic reader device over the highway reads the card and automatically sends them a toll bill each month.

    If they do not have this toll card, then their license plate is photographed and they subsequently are billed for using the toll road or lane.

    Townsend fears Las Vegas will be "strangled by traffic, strangled by smog" unless something is done.

    But the legislative subcommittee cannot change the law prohibiting toll roads. It only can make a recommendation that legislators at the session in 2009 repeal that law.

    A committee appointed by Gov. Jim Gibbons and staffed by the state Department of Transportation also is looking at privately financed toll roads and other public-private partnerships. Some legislators serve on both committees.

    Contact Review-Journal Capital Bureau Chief Ed Vogel at evogel@ reviewjournal.com or (775) 687-3901. The Associated Press contributed to this report.



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    TROY wrote on October 28, 2007 10:14 PM: Tollroads is bad for Nevadans and business. Install a Bart system in the middle of Freeway and along routes of Freeway to the strip to cut down on traffic. Will help in eliminating traffic. Public Transportation going North South East West to the Strip and buses along major stops will ease traffic congestion.


    douglas wrote on October 26, 2007 02:12 PM: those chicago area toll roads are cool. when they first were installed, the toll was 35 cents and it was "temporary". then it went down to thirty cents for a while. then it took off into orbit. so it would be in nevada. as suggested, no problem with some toll if [as in chicago], there are alternative, non-toll routes.

    as to taxing california inbound visitors, that's likely a long term loser. already casino visitor traffic is affected by the cost of fuel. some of the lv joints are comping gas for cal residents to visit lv. as the cal tribal joints expand, it will be at the expense of lv [taxpaying] joints.

    the issue of cal/nevada traffic on i-15, that should have been resolved by now with some fast rail system. hopefully the environmentalists won't further delay [read, drive the cost up] so that such a system could connect with an opening of the proposed primm airport.


    gp wrote on October 26, 2007 12:45 PM: Having toll roads around the Las Vegas valley could be a good idea, as long as you have a choice. In LA you have a choice of driving on a federal or state freeway, or you can drive on a toll road. The toll road is a faster commute with little traffic. But LA is connected to many other moderate sized cities, which makes having a choice of highway to travel on is a good thing. Where would a toll road in Las Vegas go? To Henderson or Boulder City? Maybe another ring road is in order. Anway, the toll roads back east suck, because you do not have a choice to pick and choose, except in Florida. You can travel up and down the state on whichever highway you choose to go on. A toll road is an interesting idea for Nevada, even though it would be just for the Las Vegas area. You don't need a toll road to drive to Reno, or Elko. If most of you even know where the rest of Nevada is. It is not I-15 to So Cal.


    Tollways bad idea wrote on October 26, 2007 11:17 AM: First of all, I dont live in vegas anymore, I live in chicago (where we have tollways). There is not one person who doesnt work for the government who likes tollways. All they do is add to the cost of commuting and cause a nightmare with backed up traffic. If you want your commute time to double or triple immediately, let them enact tolways.

    Second thing is a comment to John:

    John, if you cut down on the traffic that pumps so much income into the economy because casinos subsidize the taxation in Las Vegas and NV (ever wonder why you don't pay a state tax?) then guess what? They will have to make it up elsewhere. If you are going to make a comment, make it funny or if is going to be a serious one, perhaps you should THINK before you speak. $50 to get into vegas. LOL, dude, why do you think the casinos give "free" drinks to gamblers?


    John wrote on October 26, 2007 10:25 AM: I'm all for toll roads in and out of California. Make it $50 to come to NV and $5 to leave. Cut down on the weekend congestion from the filthy californians.


    DaveR wrote on October 26, 2007 09:48 AM: If oil goes to $200 a barrel, I don't see the need for toll roads as there won't be many people using their cars anymore!


    douglas wrote on October 26, 2007 09:40 AM: playing games trying to limit growth is foolish. people will move mostly where they choose in this "free" country. same as the millions [?] spent by taxpayers dealing with the intentionally obstructive, "environmentalist" law suits on the u.s. 95 widening. like the vehicular traffic will disappear if the highways are actually narrowed. all those law suits caused was more gridlock, congestion on arterial/residential/detour streets, and massive waste of fuel spent by vehicles stuck in traffic.

    what the proposed highway/toll road privatization does prove is that governments cannot operate as efficiently as private industry. finally those elected officials have come out of their stupors and admit it. but is that really news to anyone ?

    this extends to those private companies like bechtel, halliburton, u.s. aircraft & armaments manufacturers. it seems that most anytime the government takes over some task, the cost skyrockets. oddly, the net cost to taxpayers for virtually all "parts and services" connected with national defense would be far lower were they "outsourced", "offshore". does anyone think that for instance, a humvee couldn't be made at less taxpayer cost, "offshore" ?

    those blinded by some party hack crafted rhetoric will complain that governments' responsibilities should be expanded rather than limited. we must need more u.s. postal service types of businesses instead of ups/fedex/dhl. huh ?

    if the governments cannot economically provide those few tasks assigned them in the constitution, how well will they handle stuff that ain't ? like, some national health care boondoggle ?

    coolest flip flop lately is the "progressive" party's proposed 401k contributions. notice that 401k's are mostly run by private businesses investing substantially outside of government paper. when the republicans suggested that some of the social security funds be so invested, the "progressives" kicked and whined.


    Bobby V. Luker wrote on October 26, 2007 03:47 AM: I have a better idea, let our fine county commissioners and city councelmen pay for it, they are the ones responsible for not slowing the growth to keep a decent quality of life in southern nevada