FRANKFORT, Ky. (March 6, 2014) — A bill that would allow the use of public-private partnerships, or P3s, to finance major government projects in the commonwealth has cleared the House Appropriations and Revenue Committee.
P3s are public services or private ventures financed through partnerships between the public sector and one or more private companies.
House Bill 407 would impact a wide range of government projects, said Rep. Leslie Combs, D-Pikeville, who sponsors the legislation with House Majority Caucus Chair Sannie Overly, D-Paris.
“It’s intended to do things all over the Commonwealth of Kentucky in several different areas,” which may include higher education and transportation projects, Combs said.
Kentucky Transportation Secretary Mike Hancock said the bill will be “enabling legislation” for public-private partnerships to help fund multiple high-cost projects. Rep. Arnold Simpson, D-Covington, mentioned one project that could be affected is work on the aging Brent Spence Bridge linking Northern Kentucky and Ohio.
“The mere possibility of the utilization of this bill as a device to toll the bridge that lies in Northern Kentucky I feel is an affront and am really somewhat taken aback by it,” said Simpson. He asked Hancock if the bill could lead to tolls to fund construction of the Brent Spence Bridge project.
Yes, according to Hancock, who said, “tolls will be a part of this project; otherwise there simply isn’t the money to accomplish the project.”
Combs said she understands concerns that Simpson (who presented a committee amendment that was not taken up by the committee) and others may have about HB 407 and how it could affect the Brent Spence Bridget project. But she also said the bill affects “far more” than the Brent Spence Bridge.
“Whether they build that bridge, or not, is up to the Northern Kentucky people,” Combs said.
Another Northern Kentucky legislator, Rep. Addia Wuchner, R-Florence, said she believes in the importance of public-private partnerships but passed on voting for the bill until, she said, she sees Simpson’s proposed amendment.
The bill now goes to the House for further action.