A True Public-Private-Partnership: The P3 PayGo Model
P3: A Compelling Public Policy Idea to Deliver the Governor’s Proposed Infrastructure Upgrades
To deliver a more cost- and time-efficient upgrade project for Rhode Island’s decrepit transportation infrastructure, the RI Center for Freedom & Prosperity looked to alternative and successful implementation models deployed in other states for similar projects. One such model, a P3, or a true Public-Private-Partnership, is currently being utilized to deliver Pennsylvania’s Rapid Bridge Replacement Project, an $899 million public works project. For this project, the private sector may be best suited to avoid the problems typical of other bloated RI DOT projects in the Ocean State.
This out-of-the-box concept regarding the “delivery” of this massive public works project through utilization of a proven model has been utilized in many other states for similar projects. The critical safety and well-being of Rhode Islanders is dependent on our statewide road and bridge system being maintained as efficiently as possible.
Lawmakers should conduct the detailed due diligence necessary to properly consider a P3 delivery model, with a pay-as-you-go (PayGo) funding foundation. The P3 model has saved taxpayers hundreds of millions of dollars in other states throughout our nation, and the P3 PayGo Model requires no major new revenue streams, such as tolls, taxes, or fees.
Gary Sasse Excerpt on RhodeWorks: Leaving No Stone Left Unturned
“The first is the Governor’s plan that is financed by borrowing backed by truck toll revenues. The second is a PAYGO plan that has been recommended by House Republicans. This plan would be financed by reallocating existing resources, and would not contain new tolls, fees or taxes. The third option, put forward by the Rhode Island Center for Freedom and Prosperity, constitutes a P3 public-private partnership between the State and private partner. The private partner, in exchange for pre-determined revenue guarantees, would finance, repair and maintain bridges for an agreed upon time. The final option is a hybrid PAYGO- debt plan would be based on some additional public debt, but also the use of current general revenues.”- Gary Sasse
Making RhodeWorks Work for Rhode Islanders
As an alternative option to fund repairs of the Ocean State’s crumbling bridge and road infrastructure, a “pay as you go” approach that prioritizes current general revenue in the budget would provide budget certainty and save over half a billion dollars in wasteful, non-productive financing and overhead costs for Rhode Islanders, compared with Governor Gina Raimondo’s RhodeWorks plan, which increases Rhode Island’s debt burden and tolls the trucking industry to pay for it.
For More Information Please See Below:
1/14/16 State of the State: P3PayGo Plan: Alternative Bridge Repair
10/16/15 RI NPR: TGIF: 20 Things to Know About Rhode Island Politics & Media
10/16/15 The Providence Journal: GOP-led think tank backs privatizing, not tolling, R.I.’s bridges
10/16/15 NEW: P3 PayGo Model for RhodeWorks
10/15/15 RI NPR – RI DOT Admits to systematic violations of Clean Water Act
9/20/15 The Providence Journal: Federal Highway Administration demands RIDOT repay funds paid to two contractors
9/16/15 The Providence Journal: Report says RIDOT plagued by problems, overspending on consultants
9/9/15 The Providence Journal: Raimondo vows more changes at R.I. DOT
8/20/15 The Providence Journal: Pedal to the floor in drive for Raimondo’s truck-toll plan
6/29/15 GoLocal Prov: Just 9 Percent of RI Stimulus Funds Went to Roads, Bridges
6/2/15 WPRI 12: Raimondo proposes scaling back toll proposal