00:00:00>> SUPPORT FOR THIS BROADCAST
COMES FROM THE LAW OFFICES OF
00:00:05PORTER, WRIGHT, MORRIS, AND
ARTHUR.
00:00:07HELPING BUSINESSES SOLVE COMPLEX
PROBLEMS THROUGHOUT OHIO AND
00:00:13AROUND THE WORLD.
AND FROM THE OHIO EDUCATION
00:00:18ASSOCIATION, REPRESENTING
131,000 TEACHERS, SUPPORT
00:00:22PROFESSIONALS, AND HIGHER
EDUCATION FACULTY.
00:00:25ADDITIONAL SUPPORT IS MADE
POSSIBLE BY E-TECH.
00:00:33>> 2012 COULD BRING A BIG CHANGE
FOR THE OHIO TURNPIKE.
00:00:38THE STATE IS EXPECTED TO PUT
FORWARD ITS PLANS ON WHETHER THE
00:00:40STATE'S TOLL ROAD SHOULD BE
PRIVATIZED OR LEASED.
00:00:42SUPPORTERS SAY IT'S TIME TO
GIVE THE IDEA THE GREEN LIGHT,
00:00:45BUT OPPONENTS SAY IT'S A DEAD
END.
00:00:46WE'LL HEAR FROM BOTH, THIS WEEK
IN "THE STATE OF OHIO".
00:00:50IN THE NEXT FEW MONTHS, STATE
OFFICIALS ARE EXPECTED TO COME
00:00:56TO SOME CONCLUSIONS ABOUT WHAT
SHOULD HAPPEN TO THE OHIO
00:00:58TURNPIKE - WHETHER THE STATE
WILL PRIVATIZE THE TURNPIKE,
00:01:02LEASE IT OR SELL BONDS.
IN NOVEMBER, THE KASICH
00:01:05ADMINISTRATION SELECTED THE
FINANCIAL CONSULTING FIRM OF
00:01:08KPMG OUT OF A FIELD OF 14
APPLICANTS AND FIVE FINALISTS
00:01:11TO LOOK INTO THE POSSIBLE
OPTIONS OHIO HAS WITH THE
00:01:14TURNPIKE.
GOVERNOR JOHN KASICH TALKED
00:01:18BRIEFLY ABOUT THE TURNPIKE IN
HIS YEAR-END PRESS CONFERENCE
00:01:21LAST WEEK, SAYING THAT HE STILL
HASN'T DECIDED WHAT SHOULD BE
00:01:25DONE, BUT THAT THE TURNPIKE IS
AN UNDERUTILIZED ASSET AND THAT
00:01:28THE STATE HAS NEEDS.
>> WE NEED THE MONEY TO FIX OUR
00:01:34ROADS.
WE'LL SEE HOW IT GOES.
00:01:38WE WILL NOT HAVE A VOTE FOR A
LONG TIME, BECAUSE WE ARE LAYING
00:01:42THE GROUNDWORK FOR BEING ABLE TO
GET THIS DONE.
00:01:45WE WILL NOT RELEASE THE
UNDERLYING OWNERSHIP OF THE
00:01:48STATE OF OHIO WHEN IT COMES TO
ROAD.
00:01:53ALL OF THAT CAN BE ACCOMMODATED
IN A CONTRACT, AND WE WILL BE
00:01:57FINE.
IF IT DOES NOT WORK OUT, WE DO
00:01:59NOT GET THE MONEY.
IT WILL BE LIKE THE PRISONS.
00:02:02WE SOLD ONE PRISON, NOT FIVE.
WE HAVE THE SUPPORT OF THE
00:02:09CHAMBERS OF COMMERCE AND
OPERATING ENGINEERS.
00:02:11THERE IS SOME OPPOSITION BY
THOSE AT THE TURNPIKE.
00:02:13>> SINCE THE IDEA OF LEASING THE
TURNPIKE CAME OUT OF THE GATE,
00:02:16CRITICS HAVE BEEN HITTING THE
ROAD TO BLAST IT, SAYING TOLLS
00:02:18WILL RISE, ALONG WITH TRAFFIC
ON OTHER ROUTES BECAUSE OF
00:02:20DRIVERS AND TRUCKERS TRYING TO
AVOID PAYING THEM.
00:02:22MANY OF THOSE ASKING THE STATE
TO PUT THE BRAKES ON A TURNPIKE
00:02:27DEAL ARE DEMOCRATS, BUT AT
LEAST ONE IS THE FORMER DIRECTOR
00:02:29OF THE OHIO TURNPIKE
COMMISSION, GARY SUHADOLNIK, A
00:02:33REPUBLICAN FORMER STATE SENATOR.
I SPOKE WITH HIM IN SEPTEMBER
00:02:37FROM THE FACILITIES OF WVIZ IN
CLEVELAND.
00:02:40YOU ARE A CONSERVATIVE
REPUBLICAN, SO MOST PEOPLE MIGHT
00:02:48THINK YOU WOULD SUPPORT
PRIVATIZATION OF THE TURNPIKE,
00:02:51BUT YOU HAVE OPPOSED THIS FOR
YEARS.
00:02:52YOU EVEN ENDORSED DEMOCRAT TED
STRICKLAND IN 2006 BECAUSE OF
00:02:58REPUBLICAN SUPPORT TO PRIVATIZE
THE TURNPIKE.
00:03:00>> I WOULD NOT SAY ENDORSED, BUT
I PUT A BUMPER STICKER ON MY
00:03:05CAR.
I WAS ANGRY OVER SOME
00:03:08ACTIVITIES, YES.
I AM A CONSERVATIVE REPUBLICAN,
00:03:12BUT AS A CONSERVATIVE IDEA, THE
TURNPIKE IS A FEE-FOR-SERVICE
00:03:16HIGHWAY.
WE WANT MORE PEOPLE PAYING THEIR
00:03:18OWN WAY AND GOVERNMENT INVOLVE
LESS, BUT WHY CHANGE SOMETHING
00:03:22SO SUCCESSFUL?
>> YOU SAY YOU ARE OPPOSED
00:03:26BECAUSE TURNPIKE DRIVERS ARE
ALREADY PAYING TAX ON THEIR GAS,
00:03:31PAIN DRIVER'S LICENSE FEES AND
LICENSE PLATE FEES.
00:03:34IF THEY GET TICKETS, THE FINES
THE GET GO TO THE COMMUNITY.
00:03:39THE TURNPIKE COMMISSION CAN MAKE
IMPROVEMENTS AND THEN REPORT
00:03:44THOSE TO THE FEDERAL GOVERNMENT
AND GET MONEY BACK.
00:03:47THAT DOES NOT NECESSARILY GO TO
THE TURNPIKE.
00:03:50YOU SAID THIS IS AN UNFAIR
BURDEN THAT DRIVERS ON THE
00:03:53TURNPIKE ARE DOING IN TERMS OF
SUBSIDIZING THE REST OF THE
00:03:56STATE.
>> YOU SUMMED IT UP WELL.
00:03:59THE TURNPIKE CUSTOMER IS ALREADY
SUBSIDIZING OTHER INFRASTRUCTURE
00:04:03PROJECTS AROUND THE STATE.
IT IS UNFAIR.
00:04:06WE DO NOT HAVE A TOLL-FREE
HIGHWAY IN THIS AREA.
00:04:09IF YOU TRAVEL EVERY DAY, YOU ARE
PAYING MORE EVERY DAY IN THE
00:04:18CALL.
THE TURNPIKE CUSTOMER ALSO PAYS
00:04:23GAS TAX.
IT GOES TO OTHER HIGHWAYS, AND
00:04:28IN SOME CASES COMPETING
HIGHWAYS.
00:04:30STATE ROUTE 2, IN THE SANDUSKY
AREA, IS ALMOST PARALLEL TO THE
00:04:35TURNPIKE.
THE TRUCK'S DRIVE DOWN THAT
00:04:37ROAD, PAID FOR WITH TURNPIKE
DOLLARS.
00:04:40YOU PAY A LICENSE PLATE FEE AND
DRIVER'S LICENSE FEE TO PAY FOR
00:04:44THE HIGHWAY PATROL, BUT FOR SOME
REASON THE TURNPIKE IS EXCLUDED.
00:04:49SO TURNPIKE CUSTOMERS PAY FOR
THAT SEPARATELY.
00:04:52THE BIGGEST IS THE FEDERAL BASH.
-- THE FEDERAL MATCH.
00:04:57THE TURNPIKE PAYS $30 MILLION
TO $50 MILLION EVERY YEAR TO
00:05:04RESURFACE, REPLACE A BRIDGE
DECK, ADD A THIRD LINE.
00:05:08OHIO REPORTS THAT TO THE FEDERAL
GOVERNMENT AND DRAWS DOWN AND
00:05:1280% MATCH.
IF THE TURNPIKE MAKES $30
00:05:17MILLION IN IMPROVEMENTS, ODOT IS
ABLE TO IMPROVE OTHER PROJECTS
00:05:23AROUND THE STATE.
THE TURNPIKE CUSTOMER IS ALREADY
00:05:27SUBSIDIZING THE REST OF THE
STATE.
00:05:29YOU KNOW A PRIVATE CONTRACTOR IS
GOING TO RAISE TOLL RATES.
00:05:32THAT IS WHAT HAPPENED IN INDIANA
AND THE CHICAGO SKYWAY.
00:05:36>> BUT SUPPORTERS HAVE CONTINUED
TO STAND BY THE IDEA.
00:05:39IN AUGUST, I HAD A CONVERSATION
WITH JERRY WRAY, THE DIRECTOR OF
00:05:41THE OHIO DEPARTMENT OF
TRANSPORTATION, AND GENE KREBS,
00:05:44A FORMER STATE REPRESENTATIVE
WHO'S WITH THE GREATER OHIO
00:05:46POLICY CENTER, WHICH EXAMINES
TRANSPORTATION ISSUES AS THEY
00:05:48RELATE TO THE ECONOMY, LAND USE
AND GROWTH.
00:05:50>> LET ME START WITH YOU, A
DIRECTOR.
00:05:56THE BUDGET DIRECTOR HAS TALKED
ABOUT ONE-TIME MONEY BEING BAD
00:06:01THING WHEN IT COMES TO LONG-TERM
PROJECTS.
00:06:04ÑiHOW IS LEASING THE TURNPIKE NT
ONE-TIME MONEY FOR LONG-TERM
00:06:12PROJECTS TAX CUTS FOR ONE THING,
WE START OUT WITH THE PREMISE
00:06:15THAT WE WILL NOT ACCEPT ONE-TIME
MONEY.
00:06:18AS WE APPROACH THE IDEA OF THE
LEAST, WE ARE LOOKING AT A
00:06:22SHORT-TERM LEASE, SOMEWHERE IN
THE 30 TO 50 YEAR RANGE.
00:06:27WE ARE LOOKING FOR A LUMP SUM IN
THE BEGINNING, AND THEN A
00:06:32PERCENTAGE OF CALLS THE LIFE OF
THE LEASE.
00:06:35AS WE DO DILIGENCE IN THE
OPTIONS WE HAVE, WE WILL BE
00:06:41EVALUATING THAT.
ONE THING WE HAVE ALREADY
00:06:43DECIDED IS WILL NOT TAKE ONE-
TIME MONEY.
00:06:46>> YOU HAVE TALKED ABOUT YOUR
CONCERNS ABOUT ODOT FUNDING IN
00:06:52THE FUTURE, AND FISCAL
STABILITY.
00:06:55WHAT ABOUT EVEN A SHORT-TERM
LEASE, WHERE THERE IS A
00:06:58PERCENTAGE OF CALLS?
WHAT IS YOUR CONCERN?
00:07:01>> I THINK THE SUCCESS WILL
HINGE UPON WHETHER OR NOT THIS
00:07:06ADMINISTRATION MAKES A KEY
ASPECT OF HELPING EDUCATE THE
00:07:09CITIZENS OF OHIO THAT THE REASON
FOR DOING THIS IS, FRANKLY,
00:07:13ODOT'S PENDING FISCAL COLLAPSE.
IF YOU LOOK AT THE FAILURE OF
00:07:19THE STRICKLAND ADMINISTRATION TO
GET SUPPORT BEHIND THEIR REAL
00:07:23ÑiOPPOSITION -- RAIL PROPOSITIO,
THAT FAILED BECAUSE THE
00:07:30CITIZENRY DID NOT UNDERSTAND THE
IMPENDING FISCAL SITUATION.
00:07:32BETWEEN NOW AND 2017, ODOT WILL
HAVE A $1.50 BILLION DEFICIT.
00:07:40MY FIGURES ARE $3.90 BILLION.
IT MAY BE MUCH WORSE THAN THAT.
00:07:45WHEN YOU LOOK AT ODOT'S
STRUCTURAL PROBLEMS, GAS LEASING
00:07:53CONSUMPTION IS GOING DOWN.
YOUNG PEOPLE ARE DRIVING LESS.
00:07:58THEY ARE 17% LESS LIKELY TO
DRIVE.
00:08:01YOU HAVE ALL THESE FACTORS.
PLUS THE COST OF CONSTRUCTION
00:08:06PROJECTS -- IF I GO UP A MODEST
4%, A 3% DECLINE OF THEIR
00:08:13REVENUE, THAT LEADS TO A LOSS
EACH YEAR OF PURCHASING POWER.
00:08:17THAT IS EQUAL TO 2 PENNIES OF
GAS TAX.
00:08:24IF YOU DO NOT STRUCTURALLY
CHANGE HOW WE APPROACH THESE
00:08:27THINGS AND WHERE THE MONEY COMES
FROM, YOU WILL BE IN TROUBLE.
00:08:31THE KEY THING IS THAT IF THE
TURNPIKE IS LEAST -- KEEP IN
00:08:35MIND THE MONEY FROM THAT NEEDS
TO BE USED IN A MULTI MODAL
00:08:39FASHION.
WE NEED TO BE AGNOSTIC AS TO HOW
00:08:43WE MOVE PEOPLE AND GOODS.
WE NEED TO DO SO IN THE SAFEST
00:08:48AND MOST COST-EFFECTIVE MANNER.
THAT MAY NOT BE CARS AND TRUCKS.
00:08:52IT MAY BE BARGE AND HEAVY RAIL.
IT MAY BE LIGHT RAIL.
00:08:56IT COULD BE TRANSIT, BICYCLE
PATHS, SIDEWALKS.
00:09:01THIS MONEY GIVES ODOT AN
OPPORTUNITY TO LOOK AT IT IN AN
00:09:07AGNOSTIC MANNER TO DETERMINE THE
BEST AND SAFEST WAY TO MOVE
00:09:12PEOPLE, AND GET OFF THE HIGHWAY
KICK.
00:09:14THIS IS NOT A GAS TAX MONEY, SO
IT FREES THEM UP.
00:09:18>> THIS IDEA OF FISCAL COLLAPSE
-- HOW CRITICAL IS THE TURNPIKE
00:09:23MONEY?
WHAT ABOUT USING THE MONEY IN A
00:09:25MULTI-MODAL WAY?
>> WE AREÑi FACING A CRISIS.
00:09:30MOSTLY, THE CRISIS RELATES TO
FEDERAL FUNDING.
00:09:33MOST PEOPLE DO NOT UNDERSTAND
THAT WE ARE A STATE-ADMINISTERED
00:09:38BUT FEDERALLY-DRIVEN PROGRAM.
WE DEPEND UPON FEDERAL MONEY.
00:09:42WE ARE LIVING IN THE SECOND
YEAR WITHOUT A SURFACE
00:09:48TRANSPORTATION REAUTHORIZATION
BILL.
00:09:49THAT WILL SUNSET -- DOUBLE SUN
SAID THE END OF THIS MONTH, THE
00:09:56END OF SEPTEMBER.
WE ARE LOOKING AT A GENERAL
00:09:59CRISIS IN TERMS OF FEDERAL
FUNDING.
00:10:01IT IS MY HOPE WE WILL GET
SOMETHING, BUT IT IS LIKELY LESS
00:10:05THAN WE HAVE HAD BEFORE.
FOR THE FIRST TIME IN OHIO
00:10:10HISTORY, LESS MONEY FROM THE
FEDERAL GOVERNMENT AND WE HAD IN
00:10:14THE PREVIOUS ACT.
WE HAVE ISSUES.
00:10:16THERE ARE CONSUMPTION ISSUES.
PEOPLE ARE DRIVING LESS AND
00:10:20USING MORE ECONOMICAL CARS.
WE NEED TO SEPARATE THE LEASE OR
00:10:26PRIVATIZATION, OR WHATEVER YOU
WANT TO CALL IT, OF THE
00:10:29TURNPIKE.
THAT IS ONE THING WE NEED TO DO.
00:10:32THE SECOND DEBATE IS WHAT TO DO
WITH THE REVENUE WE GET.
00:10:35I AGREE WITH GENE.
NEED TO LOOK AT ALL ASPECTS OF
00:10:41OUR TRANSPORTATION SYSTEM AND
NOT THINK OF IT AS REGIONAL OR
00:10:44LOCAL PROJECTS, BUT AS A
STATEWIDE SYSTEM.
00:10:48>> DEMOCRATIC CONGRESSMAN TIM
RYAN TALKED A LITTLE BIT.
00:10:53LET US HEAR WHAT HE HAD TO SAY.
>> THE POLES HAVE NEARLY DOUBLED
00:10:58SINCE IT HAS BEEN PRIVATIZED.
RATES HAVE GONE UP.
00:11:01IF YOU LOOK AT THE CHICAGO
SKYWAY DRIVE, WHEN IT WAS
00:11:07PRIVATIZED, AT THATÑi MOMENT, IT
WAS 50 CENTS FOR A TOLL.
00:11:11BY 2017, IT IS GOING TO BE $5
FOR A TOLL.
00:11:16>>Ñi 50 CENTS A TOLL TO $5 FOR A
TOLL IN CHICAGO.C(IS THAT WHAT D
00:11:24POTENTIALLY FACE?
>> ABSOLUTELY NOT.
00:11:26IN A LEASE, WE WILL HAVEÑi CONTL
ON THE TOLLS.
00:11:30THE SITUATION IN OHIO, THE
FINANCIAL DYNAMICS, IS NOT THE
00:11:35SAME AS INDIAN OR ILLINOIS.
WE HAVE A TURNPIKE IN GOOD
00:11:40CONDITION, WHERE THE CALLS HAVE
INCREASED PERIODICALLY THROUGH
00:11:43THE YEARS.
THEY ARE STILL LESS THAN THE
00:11:45NATIONAL AVERAGE IN TERMS OF
POLLS.
00:11:47IN INDIANA, YOU HAD A ROAD IN
BAD DISREPAIR, AND THE POLES HAD
00:11:52NOT BEEN INCREASED IN 20 YEARS.
THEY HAVE A COMPLETELY
00:11:57DIFFERENT FINANCIAL DYNAMICS.
WHATEVER WE DO, WE WILL HAVE
00:12:00SOME CONTROL OVER HOW MUCH
POLLS -- TOLLS AND INCREASE
00:12:06ANNUALLY AND OVER THE LIFE OF
THE LEASE.
00:12:08YOU COULD SAY THAT COMMUTES THAT
OUR LOCAL WOULD BE LESS THAN
00:12:13THOSE THAT ARE ACROSS THE STATE.
WE ARE VERY AWARE OF THE CONCERN
00:12:18WITH TOLLS.
WE ARE AWARE OF THE NEED TO KEEP
00:12:24VEHICLES, INCLUDING TRUCKS, ON
THE TURNPIKE.
00:12:27WE WILL DO AN ANALYSIS TO MAKE
SURE THE TOLLS ARE NOT AN
00:12:33ACCEPTABLE.
>> CONGRESSMAN RYAN HIT THE
00:12:35HEART OF WHAT REPUBLICANS HAVE
TALKED ABOUT A LONG TIME,
00:12:39CHANGING THE STATE INTO A PRO-
BUSINESS CLIMATE.
00:12:42HE DOES NOT AGREE.
>> PEOPLE TRUCKING IN AND OUT ON
00:12:46THE TURNPIKE -- WE ARE GOING TO
TELL GENERAL MOTORS THAT ALL OF
00:12:51A SUDDEN THE TOLLS GOING TO
DOUBLE ON THE TURNPIKE.
00:12:56THE TRUCKING COMPANIES COMING IN
AND OUT OF HERE IS FOREIGN TO
00:13:01DOUBLE.
WE ARE GOING TO SAY OHIO IS A
00:13:04BUSINESS-FRIENDLY STATE AT THE
SAME TIME?
00:13:07WE HAVE THE MARCELLUS SHALE IN
NORTHEASTERN OHIO AND EASTERN
00:13:12OHIO, BEAUTIFUL SHALE,Ñi WITH
NATURAL GAS COMING DOWN THE
00:13:18PIPE, TREMENDOUS ECONOMIC
OPPORTUNITIES TO TRUCK PRODUCTS
00:13:21L
AND WE ARE GOING TO TELL
00:13:26BUSINESSES IN WESTERN
PENNSYLVANIA AND WEST VIRGINIA
00:13:31-- IN WESTERN PENNSYLVANIA,
WESTERN VIRGINIA, AND WESTERN
00:13:36NEW YORK, THAT WE WANTÑi TO -- E
WANT YOU TO COME TO OHIO, BUT
00:13:40PAY THESE TOLLS?
THIS IS AN ANTI-DEVELOPMENT
00:13:45PROPOSAL.
[APPLAUSE]
00:13:46>> THAT WAS CONGRESSMAN RYAN
SPEAKING TO A FRIENDLY CROWD AT
00:13:51A UNION HALL.
THIS IDEA OF THIS BEING ANTI-
00:13:55BUSINESS -- YOU ALREADY STRESSED
THE TOLL WOULD NOT DOUBLE.
00:13:58BUT A PRIVATE OPERATOR WILL BE
IN THE BUSINESS OF MAXIMIZING
00:14:03PROFITS.
WON'T THERE BE PRESSURE ON THE
00:14:06TOLLS, THE STATE, AND THE
CLIMATE OHIO IS TRYING TO CREATE
00:14:11TO BRING IN MORE BUSINESS?
>> CERTAINLY, THE PRIVATE SECTOR
00:14:17IS GOING TO BE INTERESTED IN
MAKING MONEY.
00:14:20WE UNDERSTAND THAT.
THAT DOES NOT MEAN THIS HAS TO
00:14:23BE A WIN-LOSE SITUATION.
CERTAINLY, THERE IS AN OPERATOR
00:14:28WHO BENEFITS OVER THE LONG
TERM, BUT ALSO A FORMULA IN
00:14:32PLACE THAT ALLOWS THE STATE OF
OHIO, PARTICULARLY NORTHERN
00:14:37OHIO, TO BENEFIT IN THE LONG-
TERM AND SHORT-TERM.
00:14:40>> LET ME ASK YOU TO WEIGH IN.
>> ONE WAY TO ADDRESS THIS IS
00:14:48THROUGH TRANSIT ORIENTED
DEVELOPMENT.
00:14:50IF YOU CAN COME UP WITH A
SITUATION WHERE THE PROCEEDS
00:14:53FROM THIS LEASE CAN DO
ADDITIONAL TRANSIT, LIGHT RAIL
00:14:58OPPORTUNITIES AND STREETCARS --
DEVELOPERS LOVE FIXED RAIL IN
00:15:02THE PAVEMENT.
DEVELOPERS WILL NOT DEVELOP,
00:15:05THEY TOLD ME IN A GROUP, AT A
BUS LINE.
00:15:09THEY ARE RELUCTANT TO DO SO,
BECAUSE THE BUS LINE CAN BE
00:15:13MOVED BY A BUREAUCRATIC DECISION
THE FOLLOWING MONDAY.
00:15:16YOU PUT FIXED RAIL INTO THE
STREET OF A CITY, AND THEY ARE
00:15:21MORE LIKELY TO COME THROUGH,
JUST LIKE WE HAVE SEEN WITH
00:15:25INTERSTATE INTERCHANGES.
IT IS THE SAME PHENOMENON.
00:15:27WITH TRANSIT-ORIENTED
DEVELOPMENT, YOU ARE ABLE TO DO
00:15:33TAX INCREMENT FINANCING.
YOU CAPTURE SOME OF THE
00:15:36DEVELOPER WEALTH AND PUT IT BACK
INTO PAYING IT OFF.
00:15:38THE LEASE AT THIS TIME FOR THE
TRANSIT OR DEVELOPMENT ACCESS TO
00:15:45SEE THE MONEY, AND THEN THE
T.O.D. IS A LONG-TERM REVENUE
00:15:51STREAM.
>> THAT WOULD BENEFIT THE
00:15:54COMMUNITIES.
MANY ARE CONCERNED THAT THE
00:15:56HIGHER TOLLS WILL BRING MORE
DRIVERS ONTO ROUTE 2 AND I-480
00:16:03AND I-90.
>> I HAVE BEEN THROUGHOUT
00:16:07NORTHERN OHIO.
THEY FEEL, RIGHTLY OR WRONGLY,
00:16:10AND THE OWNERSHIP OF THE
TURNPIKE.
00:16:11THAT IS HOW THEY FEEL ABOUT IT.
>> IT RUNS BY WHERE THEY LIVE.
00:16:16>> THEY THINK THEY OWN IT.
THE STATE MAY DISAGREE, BUT THAT
00:16:21IS THE EMOTIONAL INTENSITY OF
WHAT THEY DO.
00:16:23I WOULD SUGGEST THAT IF THE
STATE IS GOING TO LEASE IT, THAT
00:16:29THEY LOOK AT TARGETING THOSE
FIRST 10 OR 15 YEARS OF
00:16:32INVESTMENT INTO A CORRIDOR
ABOUT 20 MILES RADIUS ON EITHER
00:16:36SIDE OF THE EXISTING TURNPIKE TO
DO THESE TYPES OF TRANSIT-
00:16:40ORIENTED DEVELOPMENTS THAT WOULD
GIVE MORE WEALTH AND
00:16:44OPPORTUNITIES.
THE OTHER THING -- THIS WAS
00:16:47ADDRESSED IN CONGRESSMAN RYAN
CONCERNS.
00:16:50THERE HAS ALWAYS BEEN THIS DREAM
TO CONNECT PITTSBURGH TO
00:16:54YOUNGSTOWN TO AKRON TO
CLEVELAND.
00:16:56BETWEEN KYLE HOPE THE COUNTY AND
SUMMIT COUNTY, YOU HAVE 60,000
00:17:03COMMUTERS EVERY DAY.
IF ODOT WERE TO COME UP WITH A
00:17:08TRANSIT MODEL THAT COULD GET
20,000 OF THOSE COMMUTERS OFF OF
00:17:12EIGHT UP THERE EACH DAY, HE
WOULD HAVE A TREMENDOUS IMPACT
00:17:17ON THE OTHER REMAININGÑi
COMMUTERS, AND CREATE BUSINESS,
00:17:22CREATE WEALTH.
>> LET ME ASK YOU ABOUT THAT.
00:17:25WHAT IS THE POSSIBILITY OF USING
THAT MONEY IN THE WAY GENE IS
00:17:31TALKING ABOUT?
>> THERE ARE TWO ISSUES.
00:17:33WHAT ARE WE GOING TO DO
REGARDING THE TURNPIKE?
00:17:36AND WHAT ARE WE GOING TO DO WITH
THE REVENUE IF WE DO SOMETHING?
00:17:39CERTAINLY, WE WILL HAVE A ROBUST
DISCUSSION AROUND THAT MONEY.
00:17:44IF WE DON'T DO SOMETHING WITH
THE TURNPIKE, WE CAN DISCUSS
00:17:48WHAT WE WILL DO WITH NOTHING.
>> BUT IN MY CONVERSATION WITH
00:17:51GARY SUHADOLNIK, HE SAID HE
DIDN'T BELIEVE THAT TOLLS HIKES
00:17:53WOULDN'T GO INTO OVERDRIVE.
>> I DO NOT.
00:17:59I SEE THE INDIAN CONTRACT AND
THE SKY WITH CONTRACT.
00:18:03THEY HAD A NUMBER OF INDEXES.
ONE WAS THE CONSUMER PRICE
00:18:10INDEX.
ANOTHER WAS A CONSTRUCTION
00:18:12INDEX, CONSTRUCTION MATERIALS.
OF ALL THE INDEXES IN THERE, THE
00:18:17CONSUMER PRICE INDEX WAS THE
LOWEST INDEX.
00:18:19ALL THE OTHERS WERE MUCH HIGHER.
BASICALLY, WHENEVER INDEXES THEY
00:18:24PUT INTO THE CONTRACT, THE
CONTRACTOR WILL USE IT TO THEIR
00:18:28ADVANTAGE.
SECOND, IF THEY REALLY PROHIBIT
00:18:31ANY INCREASES, THEY WILL NOT GET
MUCH MONEY FOR THE TURNPIKE.
00:18:34YOU CAN PAY ME NOW OR PAY ME
LATER.
00:18:38I THINK THERE WILL BE VERY
GENEROUS INDEXES IN THAT.
00:18:42ANY CONTRACT THEY ARE GOING TO
HAVE WITH A PRIVATE -- A REALLY
00:18:45SHOULD SAY A FOREIGN CONCERN.
THE LAST STATE TO TRY TO LEASE A
00:18:49TOLL ROAD WAS FLORIDA.
ALL THE POTENTIAL BIDDERS WERE
00:18:53FROM FOREIGN COUNTRIES.
WHOEVER IS SUCCESSFUL ON BOTH
00:18:58THE CHICAGO SKYWAY AND INDIANA
TOLL ROAD, THEY ARE FOREIGN
00:19:02CONCERNS.
WHOEVER THAT BUSINESS IS, AFTER
00:19:06THEY GIVE OHIO $3 BILLION, OR
WHATEVER THE AMOUNT OF MONEY,
00:19:11AND THEY WANT TO RAISE TOLLS AND
HARRY REID SAYS YOU CANNOT,
00:19:15GUESS WHAT?
THEY WILL BE IN COURT, FIGHTING
00:19:17OVER THE DETAILS.
OUR ATTORNEY GENERAL WILL BE
00:19:21SPENDING MILLIONS OF DOLLARS
FIGHTING THESE DETAILS IN COURT.
00:19:24IT IS NICE TO TALK ABOUT A
CONTRACT, BUT IT WILL BE VERY
00:19:28DIFFICULT TO ENFORCE.
>> THERE ARE TWO ARGUMENTS I
00:19:32HAVE HEARD ABOUT LEVERAGING THIS
ASSET AND WHY WE NEED TO
00:19:35PRIVATIZE THE TURNPIKE.
THE FIRST IS CONCERN ABOUT
00:19:40FEDERAL HIGHWAY FUNDING.
WE HAVE A BILL SET TO COME UP
00:19:42FOR A VOTE BY THE END OF THE
MONTH.
00:19:44IF IT DOES NOT GET PASSED, THERE
IS CONCERN SOME PROJECTS IN THE
00:19:48PIPELINE MIGHT NOT GET FINISHED.
THE IDEA IS THAT IF THE MONEY
00:19:55WERE THERE FROM LEVERAGING THE
ASSET OF THE TURNPIKE, MAYBE WE
00:19:58WOULD NOT BE SO DEPENDENT ON
FEDERAL FUNDING.
00:20:01MAYBE IF WE GET LESS, IT WOULD
NOT HURT THAT BAD.
00:20:04WHAT ABOUT THAT IDEA?
>> HERE IS THE TRUTH.
00:20:07FOR 56 YEARS, THIS DOES NOT
COST OHIO A PENNY.
00:20:13THE TURNPIKE WAS CONSTRUCTED AND
MAINTAINED THROUGH TOLL REVENUE.
00:20:17THE TURNPIKE CUSTOMER WHO HAS
PAID FOR 56 YEARS AND IS ALREADY
00:20:23SUBSIDIZING THE STATE -- NOW THE
GOVERNOR WANTS THOSE PEOPLE TO
00:20:26TRAVEL AND PAY MORE TO HELP OUT
THE REST OF THE STATE.
00:20:30I HAVE HEARD SOME OF THIS
ARGUMENT.
00:20:34THE MAJORITY OF THE PROJECT
WOULD BE AROUND THE CORRIDOR?
00:20:37WHAT THIS IS IS LIKE THE
GOVERNMENT SAYING, "I WANT YOU
00:20:41TO TAKE OUT A SECOND MORTGAGE ON
YOUR HOUSE.
00:20:44YOU PAY FOR THE SECOND MORTGAGE.
I WILL TAKE THE PROCEEDS AND FIX
00:20:48SOME OF THE HOUSES IN YOUR CITY.
AS A MATTER OF FACT, I WILL FIX
00:20:53THE MAJORITY IN YOUR
NEIGHBORHOOD.
00:20:54YOU SHOULD BE HAPPY WITH THAT."
THIS IS A BAD DEAL.
00:20:58I GO BACK TO THE CONCEPT OF
LEASING.
00:21:01IT IS A BAD IDEA.
IF IT WAS SUCH A GOOD IDEA, WE
00:21:05WOULD ALL LEASED OUR HOMES AND
CARS.
00:21:07LEASING IS A BAD IDEA.
IT IS REALLY A BAD IDEA RIGHT
00:21:12NOW.
%E%EI
00:21:13HOME. JUST LIKE TRYING TO SE
IT IS A TERRIBLE TIME TO SELL
00:21:18AND A WONDERFUL TIME TO BUY.
THE TURNPIKE WILL NOT GET THE
00:21:22AMOUNT OF PAYMENT FROM A PRIVATE
VENDOR THAT INDIANA RECEIVED.
00:21:27INDIANA IS 157 MILES LONG.
THE OHIO TURNPIKE IS 240 MILES
00:21:33LONG.
OUR ROAD IS IN BETTER CONDITION.
00:21:36WE WILL RECEIVE LESS MONEY.
WE ALREADY HAVE IT EASY PASS
00:21:40INSTALLED.
THIS IS THE WRONG TIME TO LEASE
00:21:44IT.
IT WILL BE A FIRE SALE.
00:21:46WHEN THE ECONOMY IMPROVES, THE
FOREIGN VENDOR WILL MAKE A TON
00:21:51OF MONEY OFF NORTHERN OHIOANS.
>> THE OTHER ARGUMENT I HAVE
00:21:56HEARD IS WE HAVE A SERIOUS
PROBLEM WITH ODOT GOING BROKE.
00:22:02THEY PROJECT A $1.50 BILLION
DEFICIT BY 2017.
00:22:06GENE KREGS JESSICA BE A LOT
MORE.
00:22:13FEWER PEOPLE ARE DRIVING AND
CONSTRUCTION COSTS ARE RISING.
00:22:17WHAT CAN WE DO ABOUT THAT,
WITHOUT THE MONEY FOR THE LEASE
00:22:21OF A TURNPIKE GOING FORWARD?
>> I DO NOT KNOW WHY THE
00:22:25TURNPIKE IS THE PROBLEM.
THERE ARE 3 BILLION MILES A YEAR
00:22:30TRAVELED ON THE TURNPIKE BY CARS
AND TRUCKS.
00:22:32THAT IS SAVING OHIO ROSE $3
BILLION.
00:22:36THE TURNPIKE IS SAVING ODOT TONS
OF MONEY AND CONTRIBUTING TONS
00:22:43OF MONEY.
WHY ARE YOU PUTTING MORE OF A
00:22:44BURDEN ON THE TURNPIKE?
IF THE REST OF THE HIGHWAYS NEED
00:22:48ADDITIONAL MONEY, IT IS UP TO
THE PEOPLE USING THEM TO
00:22:51CONTRIBUTE.
THE TURNPIKE IS SELF-SUFFICIENT,
00:22:55AND IS CONTRIBUTING ADDITIONAL
DOLLARS TO THE STATE.
00:22:58WHY ARE YOU PICKING ON THE ONE
THAT IS NOT COSTING YOU ANY
00:23:01MONEY?
USING THAT LOGIC, LET US LEAST
00:23:04THE STATE UNIVERSITY AND LOWER
TUITION AROUND THE REST OF THE
00:23:08STATE.
LET US DO SOMETHING SIMILAR.
00:23:10LET US LEASE OF THE STATE HOUSE.
WHY DON'T WE DO THAT?
00:23:13THIS IS A RIDICULOUS IDEA,
TERRIBLY UNFAIR TO NORTHERN
00:23:19OHIO.
WHEN THE POLLS GO UP, THAT IS
00:23:22NOT WANT TO MAKE NORTHERN OHIO
MORE COMPETITIVE.
00:23:24IT WILL NOT HELP PEOPLE DRIVING
TO WORK ON THE TURNPIKE.
00:23:28I DO NOT KNOW WHO WILL HELP.
IT WILL NOT HELP NEIGHBORING
00:23:32COMMUNITIES THAT GET MORE OF THE
DIVERTED TRAFFIC.
00:23:35THIS IS A BAD IDEA.
THESE ARE DIFFICULT TIMES.
00:23:40YOU OF PRESENTED DIFFICULT
CIRCUMSTANCES THE STATE IS IN
00:23:44TODAY.
BUT A BAD IDEA, EVEN IN BAD
00:23:47TIMES, IS STILL A BAD IDEA.
THE WORKERS WILL NOT BENEFIT.
00:23:52THE COMMUNITIES WILL NOT
BENEFIT.
00:23:53ODOT WILL NOT BENEFIT.
AS TRAFFIC IS CHASED OFF THE
00:23:59TURNPIKE, IT WILL WEAR OUT OTHER
ROADS.
00:24:02THIS IS A BAD IDEA.
>> FINALLY, THE DIRECTOR SAID A
00:24:08FEW WEEKS AGO, WHEN YOU ARE
MOVING FORWARD WITH SOME ACTION,
00:24:12WE ARE NOT GOING TO LET IT SIT
THERE.
00:24:14WE ARE GOING TO DO SOMETHING.
DOES THAT MAKE THIS SOUND LIKE A
00:24:18DONE DEAL, LIKE THERE IS NOTHING
THAT CAN BE DONE TO CHANGE IT BY
00:24:21YOU OR ANYBODY ELSE?
>> I AM VERY CONCERNED THAT THE
00:24:25GOVERNOR AND THE DIRECTOR ARE
GOING TO PREVAIL WITH A LEASE.
00:24:29I REALLY THINK THIS IS A
TERRIBLE, TERRIBLE A BAD IDEA.
00:24:35IN THE CASE OF THE TURNPIKE, BY
LOT IT IS NOT ALLOWED TO HIRE A
00:24:40LOBBYIST.
THE TURNPIKE EMPLOYEES ARE
00:24:43CONCERNED ABOUT THEIR FUTURES.
THEY ARE AFRAID TO SPEAK OUT.
00:24:47THIS IS GOING TO BE A ONE-SIDED
ARGUMENT, WHICH IS A REASON I
00:24:52DECIDED TO SPEAK OUT.
THERE IS NO ONE DEFENDING THE
00:24:55TURNPIKE.
FORTUNATELY, THEY HAVE THE BEST
00:24:58ARGUMENT.
I AM SPEAKING OUT.
00:25:00I AM HOPEFUL I CAN REACH ENOUGH
PEOPLE.
00:25:03I AM KNOWN AROUND THE COMMUNITY.
AÑi BUMP INTO PEOPLE.
00:25:08THEY KNOW I WAS A LEGISLATOR AND
DIRECTOR OF THE TURNPIKE.
00:25:11PEOPLE TELL ME THEY THINK IT WAS
A BAD IDEA.
00:25:14PEOPLE ARE WORRIED ABOUT THEIR
JOBS AND MAKING THEIR MORTGAGES,
00:25:19SO THEY WILL NOT FIGHT FOR THIS
TOOTH AND NAIL.
00:25:21BUT THEY DO EXPRESS THEY ARE
OPPOSED.
00:25:24I THINK THIS IS A BAD IDEA.
AT LEAST NORTHERN OHIO IS
00:25:29GENUINELY OPPOSED.
I THINK THE GOVERNOR BETTER WAKE
00:25:32UP AND LISTEN TO THOSE PEOPLE.
WE WILL SEE WHAT THE FUTURE
00:25:35BRINGS.
>> GOVERNOR KASICH HAS SAID
00:25:38THAT AT LEAST HALF OF THE
REVENUE FROM THE TURNPIKE WILL
00:25:40GO TO COMMUNITIES AND PROJECTS
IN NORTHERN OHIO.
00:25:42AND HE SAID HE WANTS SOME
RESERVED FOR FIXING BRIDGES AND
00:25:44TO SUPPORT PUBLIC TRANSIT.
WE WILL KEEP AN EYE ON THIS.
00:25:50AND THAT'S IT FOR THIS WEEK.
FOR MY COLLEAGUES AT OHIO PUBLIC
00:25:54RADIO AND TELEVISION, THANKS FOR
WATCHING.
00:25:55IF YOU'D LIKE TO ASK QUESTIONS,
MAKE COMMENTS, OR WATCH THIS
00:25:57WEEK'S SHOW OR EARLIER EPISODES,
PLEASE VISIT OUR WEBSITE AT
00:25:59STATENEWS.ORG.
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00:26:01FACEBOOK.
HAPPY NEW YEAR, AND PLEASE JOIN
00:26:03US AGAIN IN 2012 FOR "THE STATE
OF OHIO".
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Note : Transcripts are compiled from uncorrected captions