Let's Bank On Rebuilding America

[marmar]

from OurFuture.org:



Let's Bank On Rebuilding America
By Isaiah J. Poole

May 6th, 2008 - 10:48am ET


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Instead of a silly argument over a "gas tax holiday," we desperately need a serious discussion about the nation's infrastructure. And there is a good legislative proposal that could be the basis for that discussion.

There are bills in the House (HR 3401) and the Senate (S 1926) that would create a national infrastructure bank. It could be one way to bring some common sense to the task of rebuilding America's roads, bridges, sewers and public buildings. The creation of this bank should be part of the effort progressives are making in Congress to enact a second stimulus bill this month.

Such a bank would allow the federal government to finance these projects in the same way that states do: by issuing long-term, tax-exempt bonds or by making loan guarantees.

Both Sens. Hillary Clinton and Barack Obama have said they support the idea of an infrastructure bank, although it rarely comes up in their campaign speeches. And that's a shame, because they both need to spend their time reinforcing an emerging national mandate for repairing and improving our crumbling foundations.

Just last month, the blog Infrastructure Watch notes, the Government Accountability Office estimated that the nation's total water infrastructure needs would cost between $485 billion to $1.2 trillion. However, funding for the largest federal drinking water and wastewater infrastructure programs have been flat or declining.

Also, the Congressional Budget Office told Congress last year that the Highway Trust Fund, which is made up largely of the revenue from the gasoline tax, will run out of money in 2009. Spending is outpacing money flowing into the fund. (High gasoline prices, in fact, worsens that problem. When high prices force cutbacks in driving, less money flows into the fund; the federal gasoline tax is a per-gallon tax; it does not increase proportionately to the cost of a gallon of gasoline.) One key reason for the exhaustion of the fund is that prices for materials such as asphalt and concrete are exceeding the general rate of inflation. .......(more)

The complete piece is at: http://www.ourfuture.org/blog-entry/lets-bank-rebuilding-america

[enid602]

1. 'by issuing long-term, tax-exempt bonds or by making loan guarantees.'

Too bad the companies insuring these tax-exempt bonds are going under.