by David Lightman
A new National Infrastructure Bank could make major investments in rebuilding America's crumbling roads, bridges and water systems under a plan proposed today by Sens. Christopher Dodd and Chuck Hagel.
Dodd, a Connecticut Democrat, teamed with Hagel, a Nebraska Republican, to introduce legislation that would set up a system to help fund bigger public projects -- projects that Washington and local governments often have trouble finding the money to build.
The bank idea has been simmering for years, and the bill is a result of studies headed by Washington's Center for Strategic and International Studies.
The center launched an effort to address major infrastructure issues about three years ago, a study headed by former Ambassador Felix Rohatyn and former New Hampshire Sen. Warren Rudman.
Too often, the study found, infrastructure funding is a hodgepodge of projects.
"Too much public investment in recent years has been earmarked for projects that have not gone through an analytic justification," said John J. Hamre, the center's president and CEO.
Estimates on the cost of repairing infrastructure run into the billions.
The Federal Transit Administration has said $21.8 billion is needed each year over the next 20 years to improve public transit systems. The Environmental Protection Agency has said hundreds of billions are needed to replace and repair drinking water and wastewater systems that are often 50 to 100 years old.
The Texas Transportation institute offered another reason to beef up infrastructure -- the average traveler, the agency said, is delayed 51.5 hours a year because of traffic and infrastucture-related congestion in the country's 20 biggest metro areas.
The Dodd-Hagel plan aims to ease these problems by establishing the bank as an independent government entity. It would be led by a five member board of directors, appointed by the president and confirmed by the Senate.
Washington would invest at least $75 million, and projects could be proposed by states, local governments, tribes, transit agencies and so on. The bank would analyze the request, and then if approved could develop a financing package with full faith and credit from the government.
It could involve direct subsidies, direct loan guarantees, long term tax credit general purpose bonds, and long term tax credit infrastructure project-specific bonds. The ceiling to issue bonds would be $60 billion.
Dodd maintains the bank is needed because "the 21st century holds great promise for our nation, but you can't journey to a brighter tomorrow by relying on yesterday's infrastructure."
As Banking Committee Chairman, Dodd is in a position to help move the bill forward -- and Hagel is a senior member of the committee.
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Comments
An interesting concept.
Democrat, Republican, independent or otherwise anyone with vision and a watch can see the need for infrasturucture work in out US of A.
Let's hear more about it.
Posted by: Doug Zook | August 1, 2007 1:15 PM
Wait, wait! Two senators actually have an idea other than impeachment of somebody or micromanaging the military?
Development of a sinking fund with
actual 20-year planning for infrastructure
is an amazingly good idea instead of the usual spur-of-the-moment pork. Of course, it's something businesses have been doing for decades, if not centuries. But still, nice going Dodd and Hagel.
Posted by: Sedona | August 1, 2007 1:18 PM
Don'tcha love the use of private business terms like "investment" and 'bank" to mask what would soon become the biggest tax raising, pork barrel scheme in U.S. government history.
The genius of the scheme is that while local pols would get to spend the money, they wouldn't have to take any heat for the taxes raised to fund the spending. The Feds would do that. Revenue Sharing, revived. Talk about a recipe to guarantee overspending! And the so-called "independent board" would be anything but.
At that, this scheme might be preferable to the present Democrat Congress's system of secret earmarks.
Posted by: Bruce | August 1, 2007 1:44 PM
Using government money and know how to build roads is just socialism.
Just like universal health care.
Posted by: Cheryl | August 1, 2007 2:02 PM
RNC Bruce,
Okay genius. How do you propose we fix our country's crumbling infrastructure?
Posted by: Doug Zook | August 1, 2007 2:04 PM
Chuck Hagel is a RINO anyway I'm not surprised he teams with big tax and spend Chris Dodd to really do pork billions in pork in the name of needed infrastructure once this becomes law nobody will justify any project. They won't have to --this is liberal tax and spend on steroids. Jerry White, Springfield, IL
Posted by: Jerry White | August 1, 2007 2:09 PM
Mrs. bruce,
I've been particularly impressed with the work Haliburton and others did rebuilding Iraq:
http://www.npr.org/templates/story/story.php?storyId=10204557
And did you really say "micromanaging the military". Maybe you should read Thomas Ricks excellent book, Fiasco, and learn how Rummy micromanaged the military disaster in Iraq.
Posted by: dt | August 1, 2007 2:12 PM
Doug, who pays ? Tax payers of course.
The question is which ones ? Local tax payers for local project ? Or US tax payers for local projects.
To me this smells of a better way to hide earmarks.
I live in AZ, Congress is giving Scottsdale a couple mil to improve drainage. It needs to be done but why should IL tax payers pay ? It should be a state and local issue.
Posted by: Andy | August 1, 2007 2:29 PM
Doug-
RNC Bruce probably thinks the best way to handle infrastructure issues is to give Halliburton a no bid contract to rebuild everything.
Posted by: Tony | August 1, 2007 2:37 PM
Jerry White,
Chuck Hagel is a decorated combat veteran who puts country over party.
Give it a try.
Posted by: Doug Zook | August 1, 2007 2:53 PM
Andy,
You have a point.
Maybe Hagel and Dodd have a good idea, maybe not. Like I posted above I'd like to learn more about it.
Posted by: Doug Zook | August 1, 2007 2:58 PM
With a $3,000,000,000,000 national budget alone, they can't find the money?
Just what do they have in mind?
Posted by: whatnow | August 1, 2007 3:57 PM
If the politicians in a particular community want to fix a pothole, they can and should do it. And fund the fixing.
This proposed national slush fund would take money away from infrastructure repair, as well as take money away from the taxpayer, in order to fund the operations of the slush fund board. The millions of dollars that will go to pay for this extra layer of bureaucracy is dollars that can't be spent on roads or sewers.
If enacted, this board will hurt, not help, our nation's infrastructure.
Posted by: Bruce | August 1, 2007 5:54 PM
This proposal seems like a grant type of project approval to me.
Posted by: lochnessmonster | August 1, 2007 6:32 PM
If you love Chuck Hagel he's yours Dougie we don't need him--we need a new Senator who stands for GOP core values you guys don't care if their weird--have a nice day Dougie, Jerry
Posted by: Jerry White | August 1, 2007 8:16 PM
Bruce Cheryl & Jerry. I'll be a bunch of people in MN would expect you to eat your words now. You three are real funny. It's obviously something we need to enact ASAP.
Posted by: rje | August 2, 2007 2:57 PM