Tennessee’s decision to use municipal bonds for state highway construction after 45 years has sparked a debate among lawmakers and the public. The state previously relied on pay-as-you-go funding for highway projects, but the recent Transportation Modernization Act has introduced new tolled express lanes, known as “Choice Lanes.” These lanes will be financed by a combination of private activity bonds and private concessionaires. While some argue that this approach will help alleviate traffic congestion and support economic growth, others are concerned about the potential risks and drawbacks of using debt financing for infrastructure projects.
Concerns Raised by State Senator Heidi Campbell
State Sen. Heidi Campbell has been a vocal critic of the Choice Lanes project, expressing multiple concerns about the privatization of the state’s transportation network. As a member of the Senate Transportation Committee, Campbell opposes the idea of private firms operating highways, citing examples from other states where privatization led to contractual issues and lack of government control. She argues that if the Choice Lanes generate profits, the state should be the one benefitting from them, rather than private entities. Campbell also highlights the lack of public transit and multi-modal connectivity in Tennessee, suggesting that the state government should prioritize addressing these issues instead of focusing solely on pavement projects.
Supporters of the Transportation Modernization Act
Despite the criticism from lawmakers like Sen. Campbell, organizations like Beacon Impact have endorsed the Transportation Modernization Act and the creation of Choice Lanes. They believe that implementing toll lanes has been proven to reduce travel times and improve traffic flow. Beacon Impact’s Vice President of Communications, Mark Cunningham, emphasizes the importance of innovative solutions for addressing transportation challenges in a rapidly growing state like Tennessee. The use of public-private partnerships (P3) to design, build, and operate highways is seen as a way to expedite construction and ensure accountability through contractual penalties for delays.
The debate over public versus private ownership of infrastructure projects is central to the controversy surrounding the Choice Lanes project. While some argue that private firms bring efficiency and innovation to construction and operation, others raise concerns about accountability, transparency, and long-term sustainability. Joseph Krist of Muni Credit News is optimistic about the use of private entities for infrastructure projects, citing clear contractual structures and performance-based incentives. However, he acknowledges the complexities of managing P3 arrangements and the potential risks associated with transferring ownership and control to private operators.
The experiences of other states with toll lanes and P3 projects offer valuable insights for Tennessee as it embarks on the Choice Lanes initiative. States like Texas, Florida, and California have already implemented optional tolled lanes to address traffic congestion and infrastructure needs. However, cautionary tales from projects like the Denver International Airport terminal expansion and the Purple Line in Maryland highlight the importance of thorough planning, risk assessment, and ongoing oversight in P3 arrangements. Tennessee must carefully consider the potential pitfalls and challenges of relying on private financing and operation for its transportation infrastructure.
The controversy surrounding Tennessee’s Choice Lanes project reflects broader debates about the role of private entities in funding and managing public infrastructure. While the state seeks to modernize its transportation system and accommodate population growth, it must balance the benefits of private sector involvement with the need for public oversight and accountability. Lawmakers, advocates, and experts must collaborate to address the concerns raised by critics and ensure that the Choice Lanes project delivers on its promises while safeguarding the interests of Tennessee residents.