Turnpike Scheme Cost Pa. Taxpayers $108 Million, Auditor General Says
Interest rate swaps by Pa. Turnpike Commission cost taxpayers and motorists at least $108.9 million, according to Pa. Auditor General Jack Wagner
The following press release was provided by the Pa. Auditor General: Auditor General Jack Wagner said that an audit released Wednesday of the Pennsylvania Turnpike Commission has found that the turnpike’s involvement in interest-rate swaps has cost Pennsylvania taxpayers and turnpike motorists at least $108.9 million. Turnpike tolls rose Jan. 6 Wagner said the turnpike’s strategy was to use the swaps to save money, but it has instead proved to further saddle the debt-ridden commission by not using conventional fixed-rate bonds to finance its debt. Under Act 44, a Lease and Funding Agreement was entered into by the turnpike and PennDOT, which requires the turnpike to pay PennDOT $450 million a year, or nearly $24 billion, over a period of …
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Richard Weisgrau
12:05 am on Saturday, January 12, 2013
It is gambling. It is speculative investment. It is legal because there is no law or regulation against it when it comes to taxpayers' or others' money. It appears that such risky speculation is OK in the minds of legislators. more ›