A growing number of states are considering arrangements in which a private operator provides an up-front payoff or builds a new road in return for decades of escalating toll receipts. This report assess these deals and identifies a number of problems with these arrangements.

We can reduce our crippling dependence on oil through long-term solutions that will make it easier for Americans to drive less. Nothing illustrates how the lack of transportation options hurts consumers and our economy more than the fact that, since approval of the tax rebates in February, Americans on average have already spent the amount of their stimulus checks at the pump.

Privatization of toll roads is a growing trend. During 2007, sixteen states had some privatized road project formally proposed or underway. In the last two years Indiana and Chicago signed multi-billiondollar private concession deals for public roads for 75 years and 99 years respectively. As a result of these deals, toll rates on these roads will increase steadily and revenues will be paid to private company shareholders rather than to the public budget.