States scrambling to find funds to fix roads, bridges / Many explore infrastructure privatizing.
Source: By Donna Borak, Associated Press, April 2, 2008
Frozen credit markets, sky-high gasoline prices, and a rising federal budget deficit are hurting cash-strapped states as they confront increasing congestion on the nation's deteriorating roads and bridges.
States are desperate to tap every possible source of funding - tolls on leased roads, sharp increases in taxes on motor fuels, and partnering with the private sector - to finance the building and repairing of roads and bridges.
Experts see sharp increases in states partnering with the private sector for funding. Some analysts say highway funding may be the next "sweet spot" for institutional investors as the burst housing bubble leaves firms looking for ways to put their money to work.
....... There is, however, a big downside: The company that would lease the turnpike likely would implement "aggressive toll increases" for drivers, according to a recent House Democratic study.