In a post over at the Houston Architecture Info Forum about Harris County studying whether or not it should keep HCTRA (Harris County Toll Road Authority), there are a couple of intriguing responses:
Because they (may) want a short term gain, the future be damned since they won’t be around to deal with it. Obviously, the future cash flow can belong to Harris County or a private firm, and the since the private firm needs to earn a profit and pay all the Wall Street fees, and net present value to Harris County has to be less than if it remained in County control.
Don’t underestimate politicians desire to mortgage the future. Bush can do it by explosively increasing the national debt. State and local governments need to use indirect methods to mortgage the future (such as unfunded pension obligations), and now with mechanisms like selling off transportation assets they have a new way to realize a near-term gain.
And:
My sources say Harris County TR has so much debt, it’s hurting their bond rating.
That’s [why] they are looking to sell.
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