NMPIRG

Citizen Update: A Report For Members Of NMPIRG

Summer 2007

Research Helps Defeat Private Road Schemes

TOLLROAD TAKEOVER—Advocates in New Jersey, Pennsylvania and Texas, three states facing potential privatization of roads, used research and public opposition to stall plans to turn over control of public roads.

Three state PIRGs released reports highlighting the problems associated with irresponsible privatization of toll roads—and all three states saw subsequent victories. New Jersey, Pennsylvania and Texas governors each retreated from their plans to relinquish toll revenue and control over transportation policy to private companies.

The actions of the governors represent a reversal of a national trend exemplified in Chicago and Indiana, where officials accepted large short-term revenue from toll operating companies at the expense of public ownership of their roads. U.S. PIRG, the Federation of State PIRGs, opposes private ownership because private companies are more likely to make decisions based on profit than public safety.

In New Jersey, after NJPIRG met with the state’s treasurer, ran a petition drive, and maintained a strong presence in the media, public opinion stiffened against that state’s proposed private road deal.

NJPIRG Executive Director Allison Cairo said, “The governor’s pledge was particularly satisfying given that it echoed many points NJPIRG had pushed. The devil will still be

in the details, so we’re continuing to watch the governor’s actions.”

In Pennsylvania, PennPIRG was the lead group opposing Gov. Rendell’s plans to sell off the Pennsylvania Turnpike, appearing in multiple media articles on the topic. Victory was declared in late June when the governor officially took the idea off the table.

In Texas, our position paper established TexPIRG as the authority on tollroad privatization in what is sure to be a continuing battle. Legislators overrode Gov. Perry’s veto and placed a moratorium on similar road deals. Various forms of toll road privatization have been proposed in 24 other states, and U.S. PIRG’s Senior Analyst Dr. Phineas Baxendall reports that we’ll continue to serve as watchdog on the lookout for bad road deals.

States Snuff Out Secondhand Smoke

When the Baltimore City Council made the decision to join hundreds of communities across the nation in prohibiting smoking in restaurants and bars on Feb. 26, they reached an important tipping point.

The General Assembly passed the statewide Maryland PIRG-backed ban shortly thereafter. Maryland PIRG and coalition members had been working with bar and restaurant workers and owners since September to bring the bill to fruition.

Oregon and Illinois, thanks in part to the work of OSPIRG and Illinois PIRG, respectively, will also join the 35 states with some kind of smoking ban. Illinois passed their ban through the Legislature in May, and Oregon did the same in June. Both governors have since signed the bills.

Combined Reporting Levels The Playing Field
When the state of Michigan revamped its business tax code, they joined 20 other states in adopting “combined reporting,” a method that prevents companies from sheltering their income from tax levies through out-of-state subsidiaries. By adopting this reform, advocated by PIRGIM, the state PIRG in Michigan, Michigan turns the tide toward combined reporting: 51 percent of the U.S. economy now uses the system, compared to just 29 percent four years ago.

State PIRG campaigns for combined reporting are under way in Maryland, Massachusetts, North Carolina, Pennsylvania and Wisconsin. WISPIRG has also advocated the reform in a series of letters-to-the-editor in major newspapers. MASSPIRG recruited 60 businesses to sign on in favor of combined reporting and other reforms that would level the playing field between businesses.

MEMBER RESOURCE