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Case Study_  I-69 Expansion - Gov. Funding.doc
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Case Study_ I-69 Expansion - Gov. Funding.doc


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  • 1. Government FundingAs stated earlier, ground breaking for the I-69 expansion was set for 2017 at the very earliestwith the earliest completion date being scheduled for 2035. When Governor Mitch Danielstook off in January of 2005, he felt that this time was unacceptable. In an effort to fund theproject, as well as many others, he put together a plan known as “Major Moves”.Prior to Governor’s Daniels’ initiatives, there was not a clear cut plan for funding theexpansion initiative. Also the state of Indiana was consistently spending more money, andwas fiscally broke by most standards. There was $1 available for every $2 needed fortransportation needs. By many projections, Indiana was facing a $2.8 billion shortage of fundsin regards to upcoming transportation projects. (Note: this includes other transportationprojects not mentioned in this report).Governor Daniels’ Major Moves program includes many other transportation projects, notlimited to I-69 expansion. There are over 200 transportation projects that are going to befunded through Major Moves.The first step in Major Moves was to lease the Indiana Toll Road I-80/ I-90. (Appendix 1) Thisbrings an immediate supply of funds to Indiana for funding of the expansion. GovernorDaniel’s submit a Request for Proposal (also known as “bids”) to all interested. The winningbid was placed by an Australian-Spanish firm, Cintra-Macquarie, for $3.85 billion for 75 years.The Toll Road is still owned by Indiana, and the state’s strict standards will still be applied.Now with the funds necessary, projected start date has been pumped up to 2008 with a clearplan on how to pay for it. Governor Daniels has already put Major Moves dollars to use, bygiving Indiana State Police a pay raise.Governor Daniels has also expressed in making a private/public partnership. The extensionwould include tolls along the new I-69. Nearly 2/3 of drivers on Indiana highways are notHoosiers, so the majority of the tolls will be paid by outside residents. There will not be tollsthrough Perry Township in Indianapolis as a part of a legislative compromise during thesession.Private partnerships are not uncommon. A British firm, BAA USA, has operated theIndianapolis International Airport since 1995.The private partnership will ensure that all deadlines are met on the expansion of I-69. StrictState laws will be applied to the I-69 partnership, similar to the Indiana Toll Road agreement.Even down to specifics such as how long they have to remove road kill.The winning firm will also have to hire Hoosiers first, as well as buy 90% of theirsupplies/products from Hoosier companies.These types of transportation related partnerships are not uncommon nationally. State Road895, also known as the Pocahontas Highway) in Richmond, Virginia was completed 15 yearsahead of schedule. State Road 125 and the planned Trans-Texas Corridor, have public-private partnerships similar to Governor Daniels’ Major Moves plans.