February 2, 2004

GOV’T WATCHDOG GROUPS BACK TURNPIKE/HIGHWAY MERGER

Romney plan frees up $190 million in one-time savings and $20 million annually

Government watchdog groups today announced their support for Governor Mitt Romney’s proposal to merge the Massachusetts Turnpike Authority with the state Highway Department, saying the plan will eliminate duplication and save tens of millions of dollars each year.

Flanked by leaders of the independent organizations, including the Beacon Hill Institute, the Pioneer Institute, Free the Pike and Citizens for Limited Taxation and Government, Lieutenant Governor Kerry Healey said it makes no sense to have two different agencies managing our state’s highways.

Healey, standing in the state Transportation Building, which houses both the Turnpike Authority and the Highway Department, asked: "If these two agencies can share the same building, why can’t they share the same legal department, the same public relations department and the same set of books? The answer is, they can."

Romney’s plan calls for the Turnpike Authority to enter into an agreement with the Highway Department to operate and maintain the Turnpike roadways, creating an estimated savings of $20 million annually through improved efficiencies and sharing of maintenance and administrative resources.

Under the plan, the Turnpike’s debt would move to the state’s balance sheet at no additional cost to the Commonwealth. The move will free up an immediate $190 million to invest in priorities like education and health care.

The Beacon Hill Institute said the Administration’s estimated savings from the merger is conservative.

David Tuerck, the organization’s Executive Director, said, "The Beacon Hill Institute has determined that the state could save up to $57 million per year in operating costs by merging the Turnpike with the Highway Department. The state could furthermore enjoy the savings without any loss of quality of services that are currently provided by the Turnpike Authority."

"Massachusetts can no longer afford the wasteful and inefficient duplication of effort represented by the Turnpike Authority," said Stephen Adams, President and CEO of the Pioneer Institute for Public Policy Research. "The Romney Administration’s merger of the Turnpike Authority into the Highway Department will produce significant savings that can help support important public services."

Healey also detailed the new governance structure the Administration is proposing for the Turnpike Authority.

Under Romney’s proposal, the Turnpike Board will expand from its current five members to nine. The new members will include the Secretaries of Transportation and Administration and Finance and the Secretary of the Office of Commonwealth Development as ex-officio members. One additional member will be appointed directly by the Governor. The Governor noted that the addition of ex-officio government members will enhance accountability and make it more accountable to state government and the taxpayers.

"It’s time to do what should have been done years ago. It’s time to spend our dollars in a smarter, more responsible way," added Healey. "This proposal takes great strides in our efforts to advance the education of our children by removing wasteful spending from our budget and putting it where it is needed most."