The Wrong of Way

Pat Choate has thoroughly researched the political and legal means by which three time republican governor, Rick Perry, has deviously acquired the power to privatize public transportation infrastructure in Texas, following the example of President Bush to transfer the commission of public projects to private corporations. Although Bush initially pushed for the partial privatization of Social Security, the privatization of Social Security was happily a failure, especially given the current failure of the world economy. Bush was, however, successful in the transfer of many public projects to independent contractors and Perry was also successful in getting for TxDOT the power to issue sole source agreements without transparency to independent corporate or group contractors. Thus, began the Trans Texas Corridor- a 4,000 mile interconnected toll road through Texas- controversy.

How did Governor Perry pull this off and what are its implications for Texans? First, Governor Perry had to change 10 laws. For example, a law had to be written which granted to TxDOT the authority to give private organizations the right to develop Texas transportation infrastructure. Second, he needed to amend the Texas Constitution, which he did by putting Proposition 15 on the ballot. The passage of the proposition allowed the creation of the Texas Mobility fund. The fund could be use for the construction, reconstruction, acquisition, operation, expansion of Texas highways, bridges, and other mobility projects. Third, Mike Kruse, the republican representative from Round Rock, advanced before a naïve legislative house the Driver Responsibility Law, which appears to be simply a law further cracking down on drunk drivers. That’s what Texas voters believed. The bill was passed in the House 146-0 and in the senate 31-0. No one seemed to notice that it contained provisions for monies that were diverted to the governor. Lastly, Rick Perry, Dewhurst, and Craddick managed to raid the State Texas Employee and Teacher Retirement System. Now the republican establishment had all it needed to privatize the state transportation system. Texas Turnpike Commissioner Russell was able to boast that the Proposition 15, which amended the constitution, gave all the authority that was needed to privatize transportation infrastructure. He could have said all the laws have been put in place and all the financing which gives us all the authority and power that the private sector needs to make “a killing.”

Why “a killing”? Indiana has taken a lead in the privatization of transportation infrastructure. Twenty four other states have similar projects and other states, including Texas, have been encourage to do the same by the US Department of Transportation at the instigation of the general policies of the administration on privatization. Further, the projects are being outsourced to Australian and Spanish/Australian firms as well as others. America is solving the global unemployment problem. Remember we are a generous people. Toll roads are also new. It will only cost you $ 1.54 cents a mile to use these nice new roads during rush hour. That’s what it will cost in Indianans. Maybe Rick Perry can get us a discount. Denis J. Enright, an investment consultant, estimated that the government could save 30 percent of cost and get 32 percent more value if it performed the service itself. This stands to reason. Private corporations and businesses must make a profit. The federal government allowed the drug companies to write Medicare Part D and economists have noted that the government could have put the plan in place at a much cheaper cost as well maintained cost.

Well! No wonder the game was finally exposed and the result has been public resistance to toll roads, especially since many citizens will lose their land because the government will claim eminent domain. Does not the current financial crisis and the auto industry crisis tell us that private industry acts in its own interest and for profit with no regard for the common good of the people? They give us recession and a huge tax bill for bailouts. We give them immunity and bailouts for incompetence. So much for privatization and government irresponsibility for the public good.
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