Dick Gephardt Two-time presidential candidate now counsel for Goldman Sachs

CARSON CITY -- Former House Majority Leader Dick Gephardt told legislators Tuesday that he sees privately financed toll roads as having "limited applicability in Nevada."

Gephardt, now counsel for the Goldman Sachs investment company, said he has visited Nevada frequently and thinks toll roads might be feasible for trucks along Interstate 80 in Northern Nevada and for passenger cars on freeways in Las Vegas. He said privately financed lanes on Interstate 15 between Los Angeles and Las Vegas might relieve congestion for tourists.

"This should not be a panacea for all your problems," Gephardt said.

He and other representatives from investment companies were invited by Senate Transportation Committee Director Dennis Nolan, R-Las Vegas, to address key legislators. Gephardt has been making appearances in numerous states, in which he encourages construction of highways with private funds.

The Nevada Legislature is looking for ways to raise $3.8 billion that a Blue Ribbon Task Force concluded in December was needed to construct 10 superprojects in the state between 2008 and 2015.

Gov. Jim Gibbons, who attended the appearance by Gephardt, has vowed to veto any legislation raising taxes for any purpose.

During the presentation, Gephardt, who served 28 years in Congress and twice ran for president, and Tyler Duvall, assistant secretary of the U.S. Department of Transportation, said levying gas tax increases and other old ways of financing highway projects are no longer acceptable to voters.

"The needs are still there," Gephardt said. "User fees, or tolls, are the least onerous alternative."

Duvall said 23 states and most of Western Europe now finance at least some highway projects through public-private partnerships. Private companies build roads for governments and receive tolls or a designated amount of money each year under long-term contracts.

But Assembly Majority Leader Barbara Buckley, D-Las Vegas, predicted legislators in Nevada will be skeptical of the idea of toll roads.

"I don't have a sense it will be successful," she said.

Assemblyman Joe Hardy, R-Boulder City, has introduced legislation to allow the Department of Transportation to build toll roads with private participation. His bill also requires that alternative roads be available for those who do not want to pay tolls.

Buckley also was concerned that Transportation Director Susan Martinovich executed a $290,000 contract with Carter & Burgess, a consulting firm that will look at which Nevada roads should be constructed with private funds and come up with cost estimates. Any such contract first needs to be approved by the state, Buckley said.

In response, Martinovich said the contract did not need legislative approval. She also said any projects built with private funds would be approved by the state Transportation Board, chaired by Gibbons.

"I am not going to recommend anything that doesn't make sense for Nevada," Martinovich said.

Buckley said the Legislature should first conduct an interim study and determine whether members favor creating toll roads.

Nolan questioned whether the Legislature could wait for an interim study on highway financing when the needs for additional highways are here now.

"With experts helping point out our options, we won't have to prolong this process by two years or four years," he said.

Senate Majority Leader Bill Raggio, R-Reno, also objected to Buckley's chiding of Martinovich.

"I am anxious we do something," he said. "I don't want to be rejecting this out of hand."