Pennsylvania needs $1.7 billion more than it has for roads, bridges, and transit. So it needs to raise taxes, right?

Not so fast, says the Commonwealth Foundation, of Harrisburg. Writing in the Pittsburgh Post-Gazette, Geoffrey F. Segal says that the commonwealth ought to consider the 3 P's: a public-private partnership involving roads.

"Some two dozen states have passed legislation enabling P3s, whereby governments partner with private-sector companies to provide public goods and services. States like Indiana, Georgia and Texas have largely centered their transportation policy on the utilization of these partnerships. And the U.S. Department of Transportation just released model legislation showing states how to properly write their public-private partnership laws."

Leasing existing roadways to private companies can give governments a large infusion of cash: Chicago got nearly $2 billion for its lease of the Chicago Skyway, and Indiana will get $3.85 billion for a lease of its toll road.

To get the largest benefit from these deals, states must ensure that contracts are sound--and that they money reaped is plowed back into transportation.

Thanks to the incentives that the private firms have to provide excellent service, commuters are already seeing improvements. "Electronic toll collection was rolled out in record time" in Chicago, Segal notes.

By the way, this press release from the U.S. Department of Transportation will take you to the model legislation.