Infrastructure Deal Could Lead to Higher Tolls, Fees

HuffPost: “One of the pay-for provisions should set off alarm bells among some Democrats: public-private partnerships, private activity bonds, direct pay bonds and asset recycling for infrastructure investment.”

“These deals, broadly referred to as public-private partnerships, are typically long-term leases or sales of public infrastructure — say a road or a port — to a private company. The government uses the revenue from the lease to build new infrastructure, while the private company gets the right to charge tolls or fees to the public for use of the old infrastructure.”

“The nightmare example of how a public-private partnership can turn sour is in Chicago, where former Mayor Richard Daley sold off the rights to the city’s parking meters and other assets in the late 2000s. The price for a parking space skyrocketed to more than $6 an hour in some parts of the city, and meters were routinely broken or overcharged motorists.”