Money for miles: More states looking to tolls to pay for highways - News and Tribune.com Money for miles: More states looking to tolls to pay for highways - News and Tribune.com

Tuesday, May 29, 2012

Money for miles: More states looking to tolls to pay for highways - News and Tribune.com

Money for miles: More states looking to tolls to pay for highways - News and Tribune.com

WASHINGTON — Driving onto an Interstate highway? Crossing a bridge on the way into work? Taking a tunnel under a river or bay? Get ready to pay.

With Congress unwilling to contemplate an increase in the federal gas tax, motorists are likely to be paying ever more tolls as the government searches for ways to repair and expand the nation’s congested highways.

Tolling is less efficient and sometimes can seem less fair than the main alternative, gasoline taxes. It can increase traffic on side roads as motorists seek to evade paying. Some tolling authorities — often quasi-governmental agencies operating outside the public eye — have been plagued by mismanagement. And some public-private partnerships to build toll roads have drowned in debt because of too-rosy revenue predictions.

Tolls are hardly a perfect solution. But to many states and communities, they’re the best option available.

“It’s very hard in this environment for states to add capacity without charging a toll because they can’t afford to do it,” said Joshua Schank, president of the Eno Center for Transportation, a Washington think tank. “They’re barely able to maintain what they’ve got, and there is an urgent need for capacity.”

Some changes are already under way

WHAT’S NEW

In addition to the tolls allowed on Interstates in 15 states, mostly in the Northeast and Midwest, the U.S. has agreed to pilot toll projects on Interstate 95 in Virginia and North Carolina and on Interstate 70 in Missouri.

A commission created by Congress to recommend ways to pay for upkeep of the nation’s transportation system predicted in 2009 that the U.S. will face nightmarish congestion unless it spends more. The commission estimated all levels of government were spending a cumulative $137 billion less each year than is necessary to maintain and expand the current system. Without action, there will be a $2 trillion-plus backlog by 2035, it said.

It’s been nearly two decades since Congress last increased the federal gas and diesel taxes that have historically paid for highways. Meanwhile, the cost of road and bridge construction has gone up and the purchasing power of fuel taxes has declined by more than a third. Revenue is also down because people have been driving less due to the uncertain economy and because cars are becoming more fuel-efficient.

Federal and state fuel tax revenues peaked in 2007 at $72.4 billion, then dropped to $68.6 billion in 2010, the most recent year for which data are available. Meanwhile, state toll collections rose from $4.9 billion in 2000 to $8.9 billion in 2010, and locally administered tolls rose from $1.6 billion in 2000 to $2.5 billion in 2009.

The trust fund that pays for federal highway programs is forecast to go broke sometime next year, though the House and Senate are trying to negotiate a bill to shore up the funding and overhaul transportation programs. It’s unclear whether they’ll reach a deal, but if they do, it’s likely to contain only a short-term financial fix. That means lawmakers will be back again, scratching for more.

EASY WAY OUT?

Tolling is the easiest near-term way to pay the bills, says Robert Atkinson, who chaired the financing commission.

“If you could allow modest tolling on Interstates, you could raise a lot of money,” he said.

Fifteen states, mostly in the Northeast and Midwest, that had turnpikes before the 1956 advent of the Interstate system have grandfathered permission to collect tolls on 2,900 miles of the 47,000-mile system. But federal restrictions prevent other states from placing tolls on federal-aid highways except in limited circumstances.

States want Congress to increase their ability to charge tolls and to allow them to use the money for a variety of transportation needs — not just upkeep of the roads where tolls are collected, said Eugene Conti, North Carolina’s transportation secretary, at a Senate hearing last month.

But states also have a history of slapping tolls on roads traveled by a large share of out-of-state motorists. When Pennsylvania applied to put tolls on Interstate 80, a route favored by truckers, the federal government rejected the plan partly because some of the money raised would have gone to support public transit in Philadelphia, even though the highway doesn’t touch the city’s metro area. In 2004, Chicago leased its Skyway, an eight-mile road and bridge, to a private toll operator for 99 years in exchange for $1.8 billion that was used to pay off city debt. The resulting toll increases fell heavily on Indiana commuters who use the road to get to jobs in Chicago.

Sen. Frank Lautenberg, D-N.J., has introduced a bill to give the secretary of transportation oversight of tolling practices. The financing commission made a similar recommendation.

What to do about tolling isn’t addressed in the highway bill now before Congress because of a standoff earlier this year between senators who favor and oppose easing tolling on Interstate highways. The issue is expected to be revived next year after the retirement of Sen. Kay Bailey Hutchison, R-Texas, who has led the opposition to greater tolling.

One concern is that the Interstate system is aging, which means money must be found to repair and replace the roads.

“The roads are out there and we’ve paid off the mortgage, but that doesn’t mean the system is paid for. ... Now the roads are crumbling and we have to upgrade them,” said Patrick Jones, executive director of the International Bridge, Tunnel and Turnpike Association, which represents toll facilities.

ON THE HORIZON

Some relaxation of the ban is in the works. The Transportation Department has selected the three states — Virginia, North Carolina and Missouri — for pilot toll projects.

Under another program, a $2 billion project now under way would add High Occupancy Toll lanes on Interstate 495 in the Virginia suburbs of Washington. The state can’t afford to build the lanes on its own, but money raised by a private investment partnership and a $586 million federal loan made the project possible.

Motorists who buy an E-ZPass that can be read electronically will be able use the lanes. Toll prices will fluctuate depending on traffic density. If toll lanes are crowded, prices will keep rising until enough motorists decide to remain in the slower lanes. The aim is to give motorists a way to travel quickly, but only if they are willing to pay for it — an idea that has stirred controversy. Cars with three or more passengers will be able to use the lanes without paying.

The administrative costs of tolling are far greater than the gas tax, even when using electronic tolling, said Phineas Baxandall, a senior analyst with the private, consumer-oriented U.S. PIRG.

Some tolling agencies could also use “a dose of sunshine,” Baxandall said. Because many are quasi-governmental, public disclosure, open meeting and other transparency rules don’t always apply, he said. As a result, they frequently operate out of public sight, creating opportunities for corruption or manipulation by industry, he said.

According to a report by the New Jersey comptroller in March, cronyism and mismanagement at the Delaware River Port Authority had wasted millions of dollars. The authority operates four bridges, a ferry and a rail line across the Delaware River between New Jersey and Pennsylvania.

The Port Authority of New York and New Jersey recently raised cash fares on six Interstate bridges and tunnels to $12 for cars. By 2015, it will cost a five-axle truck paying cash $105 to cross between New York and New Jersey, three times as much as for any other bridge or tunnel in the country, according to the American Trucking Association. Bill Baroni, the authority’s deputy executive director, told a Senate hearing the fare hikes are necessary to make up for years of neglect and mismanagement.

Despite concerns about more and higher tolls, it’s difficult for lawmakers to tell state and local governments not to pursue greater tolling when Congress isn’t providing a comparable alternative source of funds.

Jones, of the tolling industry association, predicted that as traffic congestion worsens, people “are going to demand, ‘We need better roads, we need more efficiency,’ and they are going to ask for tolling and direct user fees to build the transportation that they need.”



Finance Ministry, Bank Indonesia Not Dismayed by Recent Economic Slump - thejakartaglobe.com

The Finance Ministry and Bank Indonesia are optimistic that the recent slump in the financial markets will be just temporary, given that the country’s economy is in solid condition.

Investors scared off by events in Indonesia and abroad on Friday led the country’s benchmark stock index to its biggest single-day fall in almost seven months.

The rupiah also weakened overseas as investors reduced their holdings in Indonesian assets amid concern that the government’s regulatory framework would deter foreign investment. There were also fears that Greece’s withdrawal from the euro zone would siphon money from emerging markets.

Finance Minister Agus Martowardojo said he was optimistic that the nation’s economic growth was to remain strong, referring to the recent report issued by the Organization for Economic Cooperation and Development.

He said robust investment and a pick up in investment would be the key drivers in the domestic economy.

The Paris-based organization said in a report on May 22 that Indonesia’s economy “has continued to grow at a rapid pace, despite signs of slowing elsewhere in Asia and its impact on regional trade.”

The OECD predicted Indonesia’s economy will expand 5.8 percent this year and 6 percent next.

Hartadi Sarwono, a deputy governor at the central bank, acknowledged there had been a reallocation of assets from emerging market assets into safe-haven assets.

He also denied talk that Bank Indonesia would impose tight controls in foreign exchange, replacing the nation’s current free-floating foreign exchange system, which ensures the free movement of capital in and out of the country.

Investor Daily



Column: Damn the money, Olympics renew east London - myrtlebeachonline.com

The Olympics are focusing the world's eyes on what used to be a derelict, polluted patch of industrial land near Gold's childhood home but which now is a shining advertisement for east London: the immaculate, landscaped Olympic Park with purpose-built sports venues that smell like a new car. So damn the expense.

"What is happening is immense for east London," Gold says. The Olympics are "bringing the pride back to this part of the world."

Those London Mayor Boris Johnson once described as "Olympo-skeptics" have beaten a steady rhythm of complaint about the $14 billion Britain is spending in an economic recession on games many people couldn't get or afford tickets for. And Britain being a vociferous democracy, critics aren't locked up and shut up as they were in Beijing in 2008.

The Big Brotheresque Olympic security - up to 13,500 soldiers, plus police, security guards, fighter jets, helicopters, warships, surface-to-air missiles and even a "sonic weapon" crowd-control device that emits a dissuasive, ear-piercing beam of sound - also doesn't come cheap and, to some, is a scary reminder that Britain is a target for terrorists.

Street graffiti artists complain their work has been painted over in London's Olympic beautification. Police around the Olympic Park have been given powers to disperse "anti-social" teenage loiterers. Oficers have clamped down on prostitutes and cleaned out their calling cards from London's famous red telephone boxes. And plans to whisk Olympic VIPs and athletes through London traffic on reserved lanes sit uncomfortably in a class-conscious city where opponents dismiss the games as a corporate-sponsored shindig for the rich.

"The Olympics are being used to beat people over the head with," says Joe Alex, who owns a small house next to the Olympic Park and claims that games-related property development, "like social cleansing," is squeezing and pricing modest families out of the area.

"There's a real seedy underbelly. Corporate Olympics have taken over the whole thing," he says. "I don't know anyone who knows anyone who has a ticket."

But finding east Londoners who are thrilled is easy, too. When you look at east London's history, it is not hard to understand why.

The British capital has, in some ways, long been a city divided. Wealth, political power, bridges over the Thames, posh shops and night life were concentrated in its west. The east was where the city sent its filth - in engineer Joseph Bazalgette's sewage network - and crammed in its poor.

It was home to the massive shipping docks that Adolf Hitler's Luftwaffe bombed ferociously because they handled one-third of Britain's imports. When Buckingham Palace in the west was bombed in 1940, Queen Elizabeth II's mother, the late Queen mother, was famously said to have been almost glad that she could now "look the East End in the eye" and share its suffering.

East London was where stinking industries clustered and where Jack the Ripper slashed and horrified, where Stalin, Lenin and Trotsky visited and where India independence leader Mohandas Gandhi stayed in 1931, preferring to live among the working people and smoke stacks than in a West End hotel.

For those in the west, "the old saying was that you never went east of the Aldgate Pump," a public fountain marking a rough boundary between the city proper and its East End, says Brian Grover, an east Londoner who works at the Museum of London Docklands.

His childhood memories are of swims in the Thames so polluted "we all had boils, ear aches," and of recovering cans of fruit discarded by cargo ships in the flotsam and jetsam of the river.

"You'd always find loads of stuff, amid the dead dogs," Grover says.

East London was also where those from other parts of the city often had no wish or need to go. Gold, the West Ham chairman, joked in this interview that the A13 highway that cuts horizontally through the east into the city's financial heart was enlarged and improved over the years "so people could get through the East End of London faster because nobody actually wanted to stop here."

Gold's father, a small-time criminal, was in and out of prison. After training as a bricklayer, Gold went into business selling erotic books and magazines and, later, developing what is now the Ann Summers empire of sex toy and lingerie stores.

"I clawed my way out of this place and never wanted to come back," he says of east London. "I do now."

Gold hopes to move West Ham into the Olympic Stadium after the games. He was a boy of 7 when the V1 rocket cratered the field and blew off a roof at the soccer club's current Boleyn Ground stadium, further east from the Olympic Park and opposite what was then his house.

"Since that time, my earliest memories of the East End of London is that nothing has been done," he says. "Virtually no investment, no infrastructure."

"And along comes this amazing, amazing, amazing event that has transformed and will transform the East End forever," he said of the Olympics. "The key to the whole thing here, the whole emotion of this, is what they leave behind. And what they leave behind - fingers crossed - is a whole regeneration of a very deprived area."

The West/East divide was true in the other direction, too. For some east Londoners, the west was a world, not a bus ride, away. It was where some went rarely to see the Christmas lights, buy smart clothes or luxury goods they couldn't find in the east but not a place where they necessarily felt at home.

"I didn't know what west London was until I was 16," says Jean Jeffrey, who was born in Guyana in South America and moved 47 years ago with her Portuguese father and Indian mother to the East End. A council employee, she now runs a viewing platform that overlooks the Olympic Park, proudly explaining the changes brought by the games to visitors and busloads of school children.

"I used to feel quite embarrassed about living in east London, even as an adult. I don't anymore because I can see things happening," she says. "It's our time now and that balance is changing now - that balance from west to east."

Stratford, on the edge of and gateway to the Olympic Park, must now be one of the best-connected urban neighborhoods in Europe, served by multiple railway and Underground lines and high-speed trains named after famous British athletes. Government officials talk up Stratford as being part of a so-called "Arc of Opportunity" cutting downward through east London to the Thames.

Not all the changes one sees, like the luxury apartments and gleaming office towers built on the former Thames docks that closed in the 1960s to '80s and became derelict, are Olympic-related. But many who work and live in east London believe development wouldn't be so noticeable without the games.

They "put rocket boosters under it," says Jonathan McShane, an elected councilor in Hackney, one of the east London boroughs hosting the Olympics.

The 600-page candidate file London delivered to the International Olympic Committee when it was bidding for the games said change would still come to east London even without the Olympics but would be "slower, more incremental and less ambitious."

East London's River Lea and adjoining waterways where people drowned unwanted pets, ditched car tires, bicycles and shopping carts, and where Gold swam as a boy - "My mum found out and she went absolutely potty because she was fearful I'd get some terrible disease" - has been cleaned. It cuts through the Olympic Park.

In his memories, "I can see the area, the slums, the railway sidings and the ugliness of the whole thing," Gold says. "Now when I go there, wow, any city in the world would be proud of what is being achieved here. It's not like you're building this instead of building hospitals. We'll still be building our hospitals, we'll still be building schools. This is extra and above, and the legacy is invaluable."



Finance workers, pensions and death - Director of Finance online

Research shows linkage between pension amounts received and mortality.
 

Pensions specialist Mercer is advising smaller pension schemes to review their mortality data in light of new figures published by a research group of the Actuarial Profession, the Continuous Mortality Investigation (CMI).

The CMI has published research highlighting the wide variation of mortality experience among members of different pension schemes in the UK.
 
The CMI pensioner data is based on the experience of the UK’s occupational pension schemes and is used to estimate mortality rates.

The lower the mortality rates, the longer people are expected to live.

This means pension payments are likely to have to be made for a longer time and schemes have to hold more assets to cover this longer period.
 
The research shows a wide fluctuation in mortality rates both between industry sectors and within each industry sector.

For example, overall mortality rates in the financial sector are around 20% less than the rates calculated by schemes in basic industries, such as mining and paper.

However, within the financial sector, members receiving pensions of less than £1,500 a year were almost twice as likely to die earlier than pensioners receiving over £25,000 each year.

The data suggests that working in the same industry could be less relevant to life expectancy than the level of pension received, which itself is likely to be just a proxy for the socio-economic group an individual belongs to.
 
Glyn Bradley, Associate at Mercer, explained:

"The CMI research highlights the wide variation in life expectancies between different pension schemes. While it is common knowledge that employees in different sectors have different life expectancies overall, there are also variations within an individual sector. In our mortality assessments for clients, we find that it's not unusual for senior managerial employees to live 2-3 years longer than employees with more routine work in the same company.

"This means that thesepension schemes need to hold about 10% more assets, per pound of pension being paid to the retired higher paid workers, relative to the amount they need to hold to provide a lower paid worker's pension. What is likely to be happening is that, on average, higher paid workers have healthier lifestyles – in the sense that they smoke less, drink less, take more exercise an d have access to better healthcare and diets– than lower-paid employees.

"Of course, some highly paid people lead less healthy lives, and many low paid people lead healthy lives, so these are very broad generalisations but in short: working with your hands won’t kill you, but the booze and fags might."
 
Bradley adds that pension schemes need to carefully consider their own membership.

A decade ago, it was difficult to set mortality assumptions on a scheme-specific basis.

Bradley goes on to say:

"Nowadays, even small schemes can’t afford to ignore the available information and need to take advantage of the modern actuarial techniques available to get a scheme-specific result.

"Postcode profiling, for example, is now routine for many schemes and easy for them to do, without needing to issue detailed lifestyle and medical questionnaires to members. Medium sized schemes now have access to the kinds of sophisticated modelling that were once the preserve of large insurers. How mortality rates will change in future is still very uncertain, but it is now easier than ever for schemes to get a good idea of where they stand today."
 

 



Franchitti earns big money for 500 win - WISH-TV

INDIANAPOLIS (AP) - Dario Franchitti's first win at Indianapolis, in 2007, made him more than just Ashley Judd's husband.

His second win, in 2010, was about pure dominance — he led 155 of the 200 laps.

This year's victory was about standing among the all-time greats. He earned $2,474,280 from an overall purse of $13,285,815 for Sunday's win. The four-time series champion from Scotland became just the 10th driver to win IndyCar's signature event at least three times.

Helio Castroneves, the only other current driver with three wins at Indy, already was promoting next year's race.

"Dario, well done, man," Castroneves said Monday during the victory awards celebration at the Indianapolis Motor Speedway. "Three times. Now, we're going to be racing, so who gets four? That'll be cool, huh? That'll be really cool."

Now that Franchitti has basically done it all, there's only one thing left.

Dancing.

Castroneves won 'Dancing with the Stars,' so a few of the drivers had a little fun with Franchitti now that he's joined Castroneves as a three-time winner.

"Three times," Alex Tagliani said. "I think the drivers think you need to step it up. We think if you come and try to do it four times, you should try 'Dancing with the Stars.' I think that's the only thing you can try to do to step it up."

Castroneves continued the joke.

"You want to do it? I know the people. I have people," he said as Judd gave the cutoff sign.

Franchitti prefers to let his car do the dancing. He started 16th, took the lead for good in the No. 50 Target Chip Ganassi Racing Honda car from his teammate, Scott Dixon, on lap 199. He overcame a spirited passing attempt by Takuma Sato in turn 1 on the final lap. Sato spun and hit the SAFER Barrier while Franchitti hung on to win the race under caution.

Sato explained the reasoning behind his aggressive inside move.

"There's only one podium, which is the winner," Sato said matter-of-factly.

Sato joked that Franchitti wouldn't want to see the No. 15 car next to him in the future.

"I'm small, but I need a little bit more room," Sato said, drawing laughter from Franchitti and a thumbs-up from Judd.

When asked if everything was OK between himself and Franchitti, Sato said "I think so. I hope,'" as Franchitti nodded affirmatively.

Justin Wilson recalled getting hopeful for a moment when he saw that Franchitti and Sato nearly connected.

Then again, it was Franchitti.

"Dario's a wily old cat," Wilson said. "He had something up his sleeve."

Dixon, who won the race in 2008, earned $1,102,280 for finishing second. It was his seventh consecutive top-six finish at Indianapolis.

Franchitti expects a tougher Dixon the rest of the year.

"I'm a little upset here," Franchitti said to Dixon. "I know you're going to come back stronger."

Franchitti's move to elite status nearly didn't happen. E.J. Viso, who rear ended him in the pits early in the race, acknowledged that he was a bit too close.

"Well, it didn't cost him much," Viso said. "Happy, man, that you won the race. You deserve it."

Unfortunately for Franchitti, he learned Monday that three-time winning status often comes with jokes about your age.

"Dario, you are a legend," Ryan Briscoe, the polesitter who finished fifth, said. "You were a legend to me when I was racing go carts."

James Hinchcliffe wouldn't mind if Franchitti opted for early retirement.

"I hope someday, you get sick of all this winning and let the rest of us do it," he joked.

All kidding aside, the theme of the night was the acknowledgement of Franchitti's new place in Indy history.

"You're a legend, in my opinion," fellow driver Ed Carpenter said. "You're up there with the all-time best, and it's an honor to work with you."



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