Pennsylvania's roads and highways, like those across America, have reached a critical juncture. Mary Peters, U.S. secretary of transportation, clearly outlined the problem in a recent report that said today's roadways face a fundamental challenge with respect to maintenance and financing.

The last century was marked first by the challenge of connecting farms to markets, and then the need for broader connections to knit the nation together. Moving forward, the challenge will be maintaining the legacy of highways that are the nation's backbone of commerce and mobility.

Indeed, the problem has hit Pennsylvania especially hard. Two years ago, a study on the state's infrastructure deficit found Pennsylvania had the highest number of deficient bridges in the nation -- more than 6,500. Officials suggest Pennsylvania is facing a $1.7 billion shortfall in transportation funding. Several proposals have been aired, from increasing gasoline taxes, to taxing oil profits, to tolling interstate highways. The most promising proposal was raised by Gov. Rendell, who suggested leasing the Pennsylvania Turnpike to a private sector firm.

Unfortunately, the Legislature adopted Act 44 instead. This outdated "solution" could cost Pennsylvanians dearly. Instead of harnessing the private sector to generate the needed resources for transportation funding, the bill simply expands the status quo, granting the Pennsylvania Turnpike Commission the authority to collect tolls on Interstate 80 and manage 514 more miles of roadway. Travelers are stuck paying both a gas tax and a new toll, while the bloated and inefficient Turnpike Commission is rewarded with more responsibilities.

As the implications of Act 44 become clearer, the backpedaling has started, with many calling for an outright repeal of the law. Already, the reverberations are being felt, with proposals to offset the effects of one bad law with more laws, such as tax credits to help businesses hurt by an I-80 toll road. Yet new tolls on I-80 require approval by Secretary Peters in Washington -- no small feat.

The secretary is interested in moving the nation toward private financing, but Act 44 offers little in the way of prudent funding for highways, and does little to address the very serious concerns that have been raised about the budgeting and management practices at the commission.

Gov. Rendell's market-based solution is an opportunity to close the funding gap without putting the taxpayer on the hook. Leasing has proved successful throughout the world, and the lease would generate revenues for Pennsylvania while allowing companies with a demonstrated record of quality and performance to manage the turnpike. In fact, the United States lags the world in this important transformation of infrastructure management.

State Sen. John R. Gordner, R-Columbia, has introduced legislation to lease the turnpike, a promising start for replacing Act 44 with a more sensible and sustainable solution.

There are, however, a few quirks that could be refined to maximize the benefits of a lease. Unlike the governor's idea, Gordner's proposal divides the turnpike into three sections to encourage more bidders. But there are economies of scale to managing roads, and breaking the turnpike into smaller pieces may make it difficult to achieve those efficiencies. True, there is nothing stopping one company from bidding and winning the concession for all three pieces. However, if the optimal solution is a sole concession, breaking up the highway may reduce its value and what firms are willing to bid for the project -- reducing, in turn, the state's transportation funding.

The bill also stipulates that companies bidding on the lease must be based in the United States and have a majority of American ownership. This throws sand in the gears and unnecessarily limits the pool of capital that can be invested in Pennsylvania's infrastructure. Today's financial markets are global, and attracting international capital -- "insourcing" -- is important. And for those concerned about international interests, clearly, they cannot roll up the turnpike and go home. These are investments in the infrastructure of Pennsylvania, and they cannot be removed, regardless of where the capital is raised.

THE TURNPIKE was the first modern toll road in the nation. Entering the 21st century, Pennsylvania can again lead the nation with transportation solutions, but not if it simply expands the authority of the Turnpike Commission, an entity created in a different time for different circumstances.

As Secretary Peters has emphasized, moving forward requires fundamentally rethinking the use and financing of our transportation infrastructure. Act 44 fails on these accounts. Adopting policies that harness the efficiencies of a market with a sound system of infrastructure finance is the road to the future.

DICK ARMEY, who served as U.S. House majority leader from 1995 to 2003, is chairman of FreedomWorks, a national grass-roots advocacy organization based in Washington.