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Case
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Reference no. HKS1878.0
Published by: Harvard Kennedy School
Published in: 2007
Length: 17 pages
Data source: Published sources

Abstract

In June 2007, the governor of Pennsylvania was negotiating with the state's legislative leaders about his proposal to lease the Pennsylvania Turnpike to private investors. Leasing public highways to private companies was unheard of in the United States until the City of Chicago leased the Chicago Skyway, an 8-mile toll expressway, for USD1.83 billion in 2005 and the State of Indiana leased the 157-mile Indiana Toll Road for USD3.85 billion in 2006.  The sums astonished state and local governments around the country, and encouraged many, like Pennsylvania, to consider leasing as a means of covering budget shortfalls.

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Abstract

In June 2007, the governor of Pennsylvania was negotiating with the state's legislative leaders about his proposal to lease the Pennsylvania Turnpike to private investors. Leasing public highways to private companies was unheard of in the United States until the City of Chicago leased the Chicago Skyway, an 8-mile toll expressway, for USD1.83 billion in 2005 and the State of Indiana leased the 157-mile Indiana Toll Road for USD3.85 billion in 2006.  The sums astonished state and local governments around the country, and encouraged many, like Pennsylvania, to consider leasing as a means of covering budget shortfalls.

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