139-1: KRUSEE STANDS ALONE - MORATORIUM PASSES! -

BREAKING NEWS:

Bill restricting private toll roads heads to Perry

House Bill 1892, which would restrict private toll road contracts in a variety of ways, heads to Gov. Perry's desk after passing on a 139-1 vote. The lone nay vote was State Sen. Mike Krusee, R-Williamson. While Perry may veto the bill, the Legislature would have enough time before it adjourns May 28th to override such an action.

(As reported by Austin Statesman)

"Many House lawmakers applauded when the
bill was passed. The only dissenting vote
was cast by Rep. Mike Krusee."
– More from AP/Houston Chronicle.

Sen. Nichols: "Today the Legislature sent a clear
message: We will not sell our transportation
system at bargain-basement prices."
– More from Dallas News.

Mike Krusee and his Special-Interest Travel Agents

Rep. Mike Krusee is one of the top legislative recipients of private travel gifts, according to Texans for Public Justice (TPJ): The report called "Making Connections: State Officials and their Special-Interest Travel Agents" gives some in-depth details on how Krusee lives large on toller cash.

Governor Rick “Mr. 39%” Perry was the top recipient of private travel gifts, receiving $205,460 worth. The report states this about Mike Krusee:

House Transportation Committee Chair Mike Krusee (R-Round Rock) was another lobby favorite—especially for highway-contractor lobbyists. One lobbyist who paid Krusee’s travel bills is HillCo’s J. McCartt. His clients included Trans-Texas Corridor contractor Fluor Corp. and PBS&J—an engineering firm that has worked on several Texas toll road projects. McCartt flew Krusee to Washington in October 2005 to address a conference on public-private transportation ventures held by the American Road and Transportation Builders Association. Krusee stayed at the Marriott’s Renaissance Hotel.

McCartt also flew Krusee to Las Vegas to deliver the keynote address at a PBS&J toll summit a week after the 2005 regular session ended. The following year federal prosecutors charged PBS&J’s former chief financial officer with running an embezzlement scheme to disguise the source of thousands of dollars in political contributions to U.S. Senator Mel Martinez (R-Florida). Around this time the Texas Department of Transportation blacklisted the firm for suspected overcharges stemming from the scandal. Yet the North Texas Tollway Authority awarded PBS&J a five-year contract to work on a joint project with TxDOT just three months later.

Representing the Central Texas Regional Mobility Authority (CTRMA), Locke Liddell lobbyist Brian Cassidy sent Krusee to New York City in December 2005 to attend an awards ceremony held by the Bond Buyer newspaper. The Bond Buyer gave CTRMA the Southwest region’s “Deal-of-the-Year” award for debt-financing a 12-mile stretch of toll road with $238 million in bonds. Krusee authored the 2003 legislation that authorized CTRMA to issue such bonds.

Researchers found Texas’ poor system for disclosing official travel is both overly complex and inadequate. “Sorting out who paid whom to fly where is like flying in the dark,” said Texans for Public Justice Director Craig McDonald. “Despite murky disclosure, it’s clear that some corporate-jet owners operate frequent-flier programs for our state officials.”

The report concludes that Texas’ crazy-quilt system for reporting official travel paid for by private interests is at once too lenient and too complex. It recommends reforms to provide greater transparency and better protect the public interest.

Is Macquarie Robbing the Public Treasury?

As reported on this blog, Macquarie recently purchased one of it’s most outspoken toll and privatization critics in Texas, a newspaper group, in January.

Today, Alice S. McGuffie reports that one of Macquarie’s key players, who has been pushing the privatization of our infrastructure (a corporate subsidy scheme) for Macquarie profit is on the verge of being appointed as a key player on the other side of the negotiating table - as a U.S. Department of Transportation representative. Macquarie, who has partnered with Cintra in the past, can profit off TTC deals worth hundreds of Billions of dollars in Texas alone - in the coming decades.

MacQuarie's D.J. Gribbin moves closer to assuming DOT general counsel role

By Alice S. McGuffie, Waller Tx

The Senate Committee on Commerce, Science, and Transportation Nomination hearing of David J. Gribbin, IV on Thursday, March 29, 2007 for the position of General Counsel of the Department of Transportation has totally gone without notice by any news organizations. This quiet event, though not particularly individually significant, is one more step in the United States' giant leap toward privatizing our national infrastructure.

Gribbin was nominated by President George W. Bush in January of this year and his credentials demonstrate rapid job bounces between the public and private sectors.

D.J. Gribbin has served a little more than a year as a Division Director of Macquarie Holdings, Inc. While in this role he testified at the U.S. HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE “UNDERSTANDING CONTEMPORARY PUBLIC-PRIVATE HIGHWAY TRANSACTIONS: THE FUTURE OF INFRASTRUCTURE FINANCE” MAY 24, 2006 and encouraged Congress to "liberate" the "dead capital" of the U.S. Highway Infrastructure by facilitating more public private partnerships. Macquarie Holdings is the U.S. based "child" of Australia's Macquarie Bank.

In an October 2005 article, The Sydney Morning Herald Newspaper called Macquarie Bank the Millionaire's factory, an insatiable innovator, mesmerising the market with financial origami and generating apparently endless streams of money, and likened Macquarie Bank to "the greatest corporate catastrophe in history … Enron, the energy monster that invented new markets in everything from electricity to bandwidth to weather futures and then imploded."

Read the rest of the article HERE.

How Rick and Ric Benefit While Taxpayers Pay More.

Gov. Rick Perry and his appointed TxDOT chair Ric Williamson claim Texas has run out of tax dollars to build any more free roads.

But, TxDOT, under the Perry and Williamson direction, is diverting billions of tax dollars, intended for free roads, into toll roads (where freeways should be). Then the toll road, that took the limited right of way for a public expressway, is sold off with back room deal called a Comprehensive Development Agreement (CDA). A freeway toll tax monopoly, like SH 121 in Dallas, is created in secret.

And, even though Gov. Perry promised the 4,000 mile Trans Texas Corridor (TTC) would cost the public zero tax dollars, a recent state auditors report reveals the TTC has already cost taxpayers $90 million, and not even one mile has been built.

When the railroad was first laid down in the United States, crafty businessmen could contribute to officials who would decide the exact path of the railroad. Businesses near the railroad would have a vast advantage over those who where not. Being able to transporting goods and services cheaper than your competitors can pumps up profits, and kill competitors.

A 1997 financial statement from Rick Perry, the last financial public statement before his investments would be locked into a trust, shows how Perry has interests in MKS Consulting, an oil and gas company that Ric Williamson and his wife run.

MKS Consulting will benefit from the TTC, which will include enormous underground pipes to transport oil, gas and other utilities. Those TTC pipelines will pass only miles away from Weatherford Texas, which is the home office of MKS Consulting and hometown of Ric Williamson.

Should a rogue Governor and his close pal benefit while taxpayers pay more for wildly unpopular policies?

Also of interest, Ric Williamson’s hometown of Weatherford was one of the very first cities to receive “pass through financing” from TxDOT, a rare no toll financing option to build a free road in Texas today.

And, just days ago, TxDOT gave Weatherford Texas a grant (paid for with tax dollars, intended for freeways we can “no longer afford”) which will pay for Weatherford's police overtime.

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Reports on Today's Great Senate Hearing

I am beat. I waited all day, and didn't get called to testify, along with 100 others.

My favorite part of the day came from the State Auditor. TxDOT got caught trying to hide dozens of toll related advertising campaign costs under the rug (using our gas tax dollars they say we've run out of) . Here it is - from the Associated Press:

State auditors testifying before the Senate committee Thursday mentioned that open records dispute and cited findings from a report they released last week on the Trans-Texas Corridor. They noted that some invoices at the transportation department were coded incorrectly and listed under engineering when they were really for public relations.

"Oooohhhh," many in the audience said in unison, in disapproving fashion.

Great blog report on today's Senate hearing on Texas Observer blog, called, "Aching Assets" by Eileen Welsome. Eileen mentions how TxDOT has spent $30 million on one attorneys office. They bill out at $500 an hour (again with our gas tax dollars intended for free roads):

Williamson spent most of his time pacing back and forth in a small cloakroom adjacent to the Senate auditorium where the hearing was held. Accompanying him were the usual TXDOT operatives, along with Geoffrey Yarema, a Los Angeles lawyer who’s been retained by TXDOT to guide the department in its ambitious plan to pave the state with toll roads.

Yarema, a smallish, balding man, is a member of the Nossaman firm. At a hearing on Tuesday, Williamson revealed that the firm’s been paid some $30 million so far.

Read more HERE. And from the CBS News:

(CBS 42) AUSTIN Lawmakers chastised state transportation officials Thursday afternoon, saying a pattern of deception and lack of communication is breeding distrust. At the heart of the dispute are Texas' controversial toll road plans.

This is one of the first times the legislature has been able to weigh in on the toll road issue over the past two years. State senators admitted Thursday, Texas Department of Transportation officials caught them off guard, kept them in the dark and left them wondering what's really going on.

Tolling Texas continues generating tons of taxpayer revolt.

An overflow crowd delivered an earful of complaints to state lawmakers. Working people left their farms and ranches to blast the Trans Texas Corridor, a proposed 4,000 mile transportation plan for the future.

“I read this is a visionary plan by Governor Perry’s that will benefit all Texans,” Clare Easley said. “I am trying to see the benefit for me."

Read more HERE. And a bit of the KVUE report with VIDEO:

So many people showed up that crowds were forced into overflow rooms. The Texas Department of Transportation and toll roads have found many critics, largely because of the private companies hired to build and run them.

There are also questions about how much taxpayers pay for the roads.

Speakers sounded off about not having enough say in how state transportation dollars are spent.

BREAKING NEWS: State Auditor Warns TTC Costs and Benefits are Unknown.

Updated 2/24

A new astonishing State Auditor's Office report, raises grave concerns as the highest ranking Auditor in the state is unable to decipher how much the first part of the Trans Texas Corridor (TTC) project will actually cost, even though the first Cintra/TxDOT contract was signed two years ago.

The Audit also reveals TxDOT downplayed costs and withheld information.

The report focused on the Texas Department of Transportation's first of many sections of the TTC, the TTC-35 Comprehensive Development Agreement with Cintra-Zachry, LP.

Perhaps the most shocking part of the report is the fact that TxDOT could be required to forgo ALL the revenue it’s claimed the state would receive.

The revenue TxDOT promised to members of the legislature, the public and the press, has been one of the key selling points that TxDOT has used time and time again.

This new information ads fuel to the fire as thousands of Texans have attended public hearings to oppose the TTC. Many are outraged over TxDOT’s 90 day forceable eminent domain “quick-take” for over 500,000 acres of private land.

The report states that accounting “misallocations and exclusions” of work done to date on the 50 year contract, are of concern. Pulled from the report:

"Weaknesses in the Department’s accounting for project costs and monitoring of the developer create risks that the public will not know how much the State pays for TTC-35 or whether those costs were appropriate.

Not adequately monitoring developers also exposes the State to future financial liability.”

And, 53% of TTC-35 costs to date were incorrectly allocated to other projects. Invoices included hours billed that could not be tied to any progress reports or tasks performed. The report also states:

“The Department omitted indirect costs of $906,774 in fiscal year 2005 and $583,642 in fiscal year 2004.”

Also, from the summery:

“There is a lack of reliable information regarding projected toll road construction costs, operating expenses, revenue, and developer income.”

UPDATE: The Houston Chonicle and Statesman offer articles, "Audit rebukes corridor costs, Report says TxDOT estimates unreliable for Trans-Texas plan" and "Auditor scolds agency for corridor project, Texas Department of Transportation downplayed costs, withheld information, audit says".

In 2005, the State Comptroller came out with an investigative report showing how Regional Mobility Authoritys that privatize and toll public highways are creating double taxation, by diverting tax dollars intended for free roads, into toll roads. The report also showed RMA board members giving no-bid contracts to themselves and their friends. Board members of RMA's have property in the vicinity of toll roads that have increased by as much as 989%.

Bureaucracy always costs more, and it allows much more waste and fraud.

The Texas Transportation Institute report that came out just weeks ago stated that tolls would NOT be needed if we indexed the gas tax to inflation, like most products and services we purchase.

The cost per mile for tolls, under the new TxDOT, is more than 15 times the cost of indexing the gas tax.

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Shouts of “Hitler” and "Imperialism" Ring at Anti-TTC Meeting

Gov. Perry’s Texas Department of Transportation (TxDOT) continues to “fast Track” Perry's vision of the Trans-Texas Corridor , TTC-35 and TCC-69, also known as the first step of the open border Nafta Superhighway, which will span from Mexico to Canada.

CorridorWatch and Citizens of Waller County led an Anti-TTC meeting in Wallis last weekend. The groups discussed how the TTC, the largest land-taking in Texas history will force Texas families from their home, via eminent domain. Foreign companies like Cintra and Macquarie will profit for decades off TTC Comprehensive Development Agreements (CDA's). Macquarie has recently purchased a group of Texas newspapers to silence critical press.

The state has attempted to create an illusion that there is nothing to worry about and the fears that have been expressed by the many thousands of Texans that attended hearings last fall, are unfounded.

In reality, a careful reading of their own web site reveals a confirmation of those fears. TxDOT’s own web site states that property will be taken through ‘Quick Take' authorized by HB 3588 to force homeowners out in just 91 days.

From the Sealy news report, “Citizens speak out against proposed TTC-69”, shouts of “Hitler” ring out at the Anti-TTC meeting:

"Hitler took the autobahn and took all the land," a concerned citizen said. "What are we going into? Imperialism?"

"Eminent domain has to pay you for your land," Linda Stall said. "But you will get what the TxDOT appraiser says it's worth. It's not a question of if. It's a question of how much."

This week, Paul Burka of Texas Monthly wrote about TxDOT's view that Gov. Perry is their one and only boss - TxDOT Chair Ric Williamson claims an imperial governorship. Burka states, "The governor is not the boss of the Texas Transportation Commission. Constitutionally, the governor is not Williamson's boss. The Legislature is."

Senator John Corona, chairman of the transportation and homeland security committee, has filed SB 149, which puts an end to non-compete agreements, which would put the brakes on efforts to toll Texas. Sen. Corona has scheduled a transportation hearing at the Texas Capital on March 1, and all citizens are encouraged to attend.

NO NEED FOR TOLLS, TEXAS AWASH IN ROAD MONEY, HIGHWAY BUDGET MORE THAN DOUBLED UNDER PERRY

Strayhorn Camp Says Texas
Needs Leadership And New Direction

(AUSTIN) – Despite his assertion to the contrary, Gov. Rick Perry’s Texas Department of Transportation has more than enough money to address transportation needs without giving hundreds of thousands of acres of the state to a foreign company and charging drivers tolls, his principle opponent’s campaign said today.

“Perry says the billions and billions and billions of dollars he has to build new roads are not enough,” said Mark Sanders, spokesman for Independent Candidate for Governor Carole Keeton Strayhorn. “It may sound like chump change to him, but Carole knows with real leadership that sets clear priorities we have ample resources to fix our roads. Perry needs to tell Texans the truth.”

“This biennium, TxDOT has $15.2 BILLION to spend – up from $7 billion before Perry was promoted to Governor,” Sanders said. “That is a whopping $8.2 billion more – a 117 percent increase. If the Governor can’t figure out how to build freeways with that kind of cash, we need a new governor.”

Strayhorn has pointed to $4 BILLION in Texas Mobility Bonds, $3 BILLION in revenue bonds, increased federal dollars and increased tax collection at the state level to build freeways.

“With Carole’s leadership, that money will be spent on common sense projects like expanding IH 35 using existing right of ways, implementing the Ports to Plains plan to ease congestion, and increasing telecommuting,” Sanders said. “Two of those real-world solutions were vetted by TxDOT in 1999 and 2001. Those are realistic solutions to a real problem, not pie-in-the-sky plans that give half-a-million acres of Texas away to a foreign company to builds toll roads and reap profits from hard-earned dollars of Texans.”

“Rick seems to be more interested in taking care of the special interests than listening to the people of Texas,” Sanders said. “He is ignoring Texans, particularly the farmers and ranchers who overwhelmingly oppose his Trans Texas Corridor.”

Sanders said Strayhorn’s plan to appoint an inspector general and ombudsman to oversee TxDOT will help the agency spend the billions it has wisely and get the agency back in touch with the people it is supposed to be serving.

“It’s time to change the status quo at the Texas Department of Transportation and put the people back in charge, not the special interests. Under Carole’s leadership, that is exactly what will happen,” Sanders said.

PERRY AIDE WORKING FOR TTC's CINTRA and More

MORE NEWS ARTICLES: PERRY AIDE WORKING FOR CINTRA BELOW:

• DALLAS NEWS TODAY: Perry's Transportation Advisor rehired by Cintra
  

• CorridorWatch TODAY: Cintra's Inside Man - Dan Shelly

• -DALLAS NEWS: Perry's Top Donors Get TTC related Appointments-

• Who profited from Cintra's public stock offering?

• Top Aide to Perry Worked for Cintra

• Shelley's previous employment for Cintra adds questions about the Trans-Texas Corridor.

• Account of aide's role at Cintra contradicted

• Perry's office downplays ties to corridor firm

• Perry aide was at toll road meetings

• Revolving roles stir concerns in Austin

• "Governor's motives are open to question in light of the large campaign contributions he received from interests boosting the privatized corridors."

DAILY TEXAN: TTC Yell from the crowd... "You're stealing our land!"

Corsicana Daily Sun Columnist calls TTC ‘Bunch of baloney’ CLICK HERE TO READ IT

Associated Press: Texas farmers furious over superhighway

Herald-Banner: Frosty reception for proposed corridor

LEAGUE OF WOMEN VOTERS OF TEXAS OPPOSES THE TRANS-TEXAS CORRIDOR ROUTE

WORLD NET DAILY Exclusive: Trans-Texas Corridor paved with campaign contributions? (CLICK HERE)

$afety for Sale in Texas.

Just like everything else that isn’t bolted down,
safety is now for sale in Texas with
Gov. Perry at the helm.

The Statesman did an article today about TxDOT's possible plan to get more money by raising the speed limit on the new south SH 130 called “Money could create need for speed on Texas 130”. TollRoadsNews.com broke the story first HERE.

TollRoadsNews.com states:

The open embrace of a financial approach to setting speeds on a tollroad may be judged either bold or foolhardy.

The Statesman article states:

With a higher allowable speed, logic dictates that more drivers would choose the toll road, which will run east of Austin, as an alternative to Interstate 35. And more vehicles equals more toll revenue, boosting Cintra-Zachry's income.

Under that scenario, the state would be irresponsible if it did not try to recoup more revenue for taxpayers, said Phil Russell, director of the Texas Department of Transportation's turnpike division. As for the safety questions raised by that higher speed, Russell said the agency is working on design standards for the Trans-Texas Corridor, a proposed 4,000-mile network of toll roads, that would make them as safe at 85 mph as interstates are at 70 mph.

And Perry’s TxDOT keeps on shoveling:

"Whatever the speed limit is, we're going to make sure our design standards can accommodate it," Russell said Monday.

In this LA Times article on 80 mph speed limits Texas, TxDOT officials say fuel efficiency and accidents are not thier concern:

Texas transportation officials say concerns about fuel efficiency or the possibility of increased accidents are not their department.

"I can't speak to fuel economy," TxDOT's Mark Cross said. "I'm sure it will have some impact, but it's not really our department to consider it…. We do not forecast accidents or fatality increases — that is not something we routinely look at."

Engineers calculate that drivers burn 7% more gas per mile for every 5-mph increase in speed above 60 mph.

So what exactly is their department? It amazes me that the Texas Dept. of Transportation takes such a myopic view of their job. Certainly when they design highways, safety measures are a prime concern and speed has to be one of those.

So you might ask, how much more money does Gov. Perry's toll happy TxDOT get? This from the Statesman's article:

The contract contemplates that Cintra-Zachry would pay the state an upfront concession fee of $25 million and 4.65 percent of toll revenue until total revenue reaches certain thresholds in any given year. Then the portion for the state would grow to 9.3 percent until a second revenue threshold is reached, jumping to 50 percent after that.

But that is only if the speed limit is 70 mph.

The contract says that if the speed limit is 80 mph, the upfront payment would be $92 million. At 85 mph, the payment would be $125 million.

What will the higher speed limit COST US? (Just some lives and more of our money)

Set aside the fact that Texas infrastructure is being sold off to a Spanish corporation with a secret deal. Let’s get down to brass tacks. What are you and your family worth to Gov. Perry and his highway henchmen?...The following statement was NOT in the Statesman article. I found this in a recent Safe Roads press release:

"Nearly 40 percent of the 3,600 people killed on Texas roads in 2004 were speed-related crashes," said Advocates for Highway and Auto Safety President Judie Stone. "With these types of crashes costing Texas nearly $3.5 billion annually, raising speed limits to 80mph (or 85 mpg) is a deadly, dangerous and irresponsible act."

More Speed Facts Here.

Bush Administration Quietly Plans NAFTA Super Highway (CLICK HERE)

Cintra Gravy Train: Another No Bid, Secret Deal

It was revealed today that CINTRA, the Spanish Corporation already in line to build a cross-state toll road, has submitted a no bid offer to build a 600-mile, $5 Billion dollar, high-speed freight rail track from the Dallas-Fort Worth area to Mexico.

Numerous details remain a secret. Based on Cintra's Comprehensive Development Agreement for a portion of the TTC last year, signed by Gov. Perry's appointed TxDOT Transportation Commission, it's sure to stay a secret.

CDAs are the special interest tool created to hold back public disclosure, public debate, legislative oversight, open and transparent government and local control. The short history of the CDAs have already proven to be rife with secrecy.

1) Attorney General opinion states Cintra must release Perry/Cintra CDA to Houston Chronicle:
http://www.chron.com/disp/story.mpl/metropolitan/3212402.html

2) Cintra sues Attorney General to keep CDA a secret: http://www.sanluisobispo.com/mld/dfw/11984950.htm

CDA road, land and rail development contracts hand over our tax dollars, our public highways, our right of way, and our private property to private corporations for profit. Financial reports show, many of the same corporations that profit also fund the special interest campaigns of Gov. Perry, Todd Staples and Rep. Mike Krusee.

Last November Gov. Perry, Staples, Krusee and others pushed for and helped to pass Prop 1, which, as a Constitutional Amendment allows unlimited tax dollars (and debt) to be spent on rail relocation. That would allow our tax dollars, as corporate welfare, to sweeten the Cintra/TTC pot for the benefit and profits of private corporations.

Strayhorn today reiterated her call for Gov. Rick Perry to make public the secret 50-year contract his Texas Department of Transportation signed with Cintra, a European-based company, to build and charge Texans to drive on toll roads. Cintra and TxDOT took the agreement to court on June 25th—now over eight months have passed with the public still kept in the dark as to the details—why accept a proposal from the same foreign company which does not want to release the unfair details of their first still secret agreement.

“Whether it is a foreign company running our roads, our rails, or operating our ports, it’s wrong,” she said. “What happens if ownership of these foreign companies changes hands?”

“Texas belongs to Texans, not foreign companies,” she said. “My administration will not be cutting secret sweetheart deals with foreign companies like Rick Perry has.

Cintra behind Secret 5 Billion TTC Rail Deal

More about foreign ownership of U.S. assets (TTC)