BIKE: TxDOT is doomed -- update

[rcbaker]

At the link below are the basic facts on world oil economics laid out by Bush's only 
publicly honest energy advisor, Matthew Simmons, of Houston. The Feb. 25 article in 
the NYT confirmed that the Saudi fields are really in the bad shape that Simmons says 
in this link. 

I think TxDOT's thinking might be (insofar as that brain-dead political bureaucracy is 
capable of thinking) -- is that if we keep running out of money to build new roads in 
Texas, and shift to building the roads with toll road bonds, then the international 
investors will keep sending us money, via the NY bond houses, on the advice of 
Moody's Standard and Poor, and Fitch, which have a monopoly on setting bond ratings. 

The problem with this head-in-the-sand approach to road financing is that there is a tidal 
wave of new (tax-free) municipal bonds being issued in a synchronized fashion in 
response to huge debt of many local US governments plus low current interest rates.

When everyone tries to get through the same gate at the same something has got to 
give. Toll road bonds are among the riskiest of municipal bonds to begin with, which is 
why TxDOT's bonds for the Central Texas Turnpike Project were rated little better than 
junk at BBB+, despite many guarantees of TxDOT matching money plus "non-compete 
clauses". These clauses legally obligate TxDOT to legally oppose all new roads that 
would effectively compete with its toll roads over the forty year life of the bonds!!! 

Just wait until the commuters on IH 35 see themselves forced to pay tolls to use SH 130 
by the upcoming construction on IH 35. But SH 130 won't even open until 200. The 
average motorist will probably be more concerned with much higher gasoline bills before 
then, if Simmons is right, as per the following link. -- Roger  

http://www.worldoil.com//MAGAZINE/MAGAZINE_DETAIL.asp?ART_ID=2205