Mayors urge Congress to help fix US infrastructure

[flashl]

Source: SF Gate

(06-12) 11:52 PDT WASHINGTON (AP) --Big-city mayors told Congress on Thursday that they are overwhelmed by the infrastructure needs of their regions and cannot maintain well-functioning water systems, roads and rail networks without more federal help.

"We're having a quiet collapse of prosperity," said Kansas City, Mo., Mayor Mark Funkhouser, one of four mayors to testify before the Senate Banking Committee about the state of the nation's infrastructure, which they agreed was poor and getting worse. They blamed much of the decay on shortsighted thinking by local, state and federal officials.

The issue of the country's deteriorating transportation systems came under scrutiny last year with the collapse of a bridge in Minnesota that killed 13 people. While experts believe a poor design led to that collapse, the mayors sounded an alarm about decay throughout the system and its long-term effects on the U.S economy.

...

The American Society of Engineers estimates that bringing the nation's transportation and resources networks up to a properly functional level would require $1.6 trillion and five years of work. Still, the mayors say, even that wouldn't accommodate the new strains placed on roads in coming years.

SFGate

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/06/12/national/w115233D47.DTL

[tom_paine]

1. With what? Borrowed Chinese money? Monopoly money?

If our Deadbeat Nation was a person, it couldn't finance a Hershey Bar.

[flashl]

4. If the 'government' (FHLB) can loan CW $51B on its worthless mortgages, anything is possible. nt

[SergeyDovlatov]

10. How about using gas taxes? Only 60% are used for transportation related expenses

http://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States

The head of the U.S. Dept. of Transportation stated on 15 August 2007 that about 60% of federal gas taxes are used for highway and bridge construction. The remaining 40% goes to other, unrelated uses.

[tom_paine]

13. You can't ask the Bushie middlemen to give up their kickbacks!

That's cruel and unusual punishment.

:sarcasm:

What's the point of being a Loyal Bushie if you can't loot?

[LisaM]

2. Charge the people who drive SUVs and Hummers

Seriously. I'm sure those vehicles put a lot more wear and tear on the roads than my compact.

I remember when I lived in Michigan, licesning tabs were connected to the weight of the vehicle (don't know if it's that way now). But when I moved to Washington, it was by the value of the car (so a brand new compact would cost more than a 20-year old Jeep Waggoneer), until a tax nut named Tim Eyman got the bright idea that all car tabs should be $30.

[MadMaddie]

7. Tim Eyman is an idiot isn't he? That $30 tab ended up costing

a lot more than that...

[SergeyDovlatov]

16. Did it pass? I thought I-917 failed to qualify for ballot

[MadMaddie]

20. You are correct I-917 failed to qualify but you have to go back

to 1999 when Initiative 695 passed.....

http://www.nwprogressive.org/weblog/2008/05/those-who-voted-for-i-695-have-no-right.html

http://seattletimes.nwsource.com/html/localnews/2004422060_ferry18m.html


Inititive 695 is a shitty piece of Republican crap that passed and now WA state is paying for it. Tim Eyman who has no other jobs but to pursue this kind of crap got it passed by fooling the people through smoke and mirrors.

[SergeyDovlatov]

21. Why subsidize rich stock brokers and laywers?

The article is talking about ferry system being hurt.

Bainbridge Island is a home for many very wealthy individuals, who choose to live there and commute to Seattle to work on a ferry.

Why those wealthy people living on the island need to be subsidized by car tabs that everybody pays poor and middle class?

They want to commute across the lake daily? They can pay full price for the ferry ticket.

Those who don't have to commute daily, wouldn't be hurt that much for a few trips in a year and paying a full price.

[whistle]

3. Oh my gosh, now it begins, those spendthrift democrats raising taxes

...for wasteful things like infrastructure programs bankrupting the country :sarcasm:

[yella_dawg]

5. I'm in deep East Texas.

Saw a work truck in town with "City of Chicago Natural Gas Service" on the door, and wearing Texas Exempt plates. A Chicago city employee living in Texas with State perqs. Infrastructure indeed.

[MadMaddie]

6. Once Obama wins...he will have to implement a New Deal...

working with all of the Governers. This New Deal would put Americans to work...(no outsourcing of any of these jobs) and start fixing and replacing infrastructure needs.

[Doctor_J]

8. Since * and the GOP Congress have spent the next 30 years' revenue

destroying the Iraq infrastructure, I don't see this happening.

[bluesmail]

9. I have to say too late...the money's long gone and already

spent. I'm talking about the Iraq billions, (or trillions)? That was taxpayer money for taxpayer needs. Come on Congress. Where's your muscle? Too late. Too late to even ask.

[Hekate]

11. Put this nation back to work with decent wages. Skilled trades will be needed...

If President Obama looks at infrastructure and energy needs as a Franklin D. Roosevelt opportunity to put people to work rebuilding the nation we can make incredible strides. If we get out of Iraq and redirect the money away from the military industrial complex we will certainly have the money to pay for these vital projects.

Hire union, hire American first.

Hekate

[slipslidingaway]

12. 1999 -- Federal Bank for Infrastructure Modernization

Too bad we spent all that money on the Iraq invasion :(

From your article...

"To answer such demands, Sens. Chris Dodd, D-Conn., and Chuck Hagel, R-Neb., are pushing a bill to create a National Infrastructure Bank that would raise money for major national projects by issuing up to $60 billion in tax credit bonds, which could then be leveraged into greater funding."



http://www.govtrack.us/congress/bill.xpd?tab=main&bill=h106-2777

H.R. 2777 <106th>: Transportation Infrastructure and Local Government Capital Enhancement Act

Sponsor: Rep. Jack Metcalf

"The following summary is provided by the Congressional Research Service, which is a nonpartisan government entity that serves Congress and is run by the Library of Congress. The summary is taken from the official website THOMAS.

8/5/1999--Introduced.
Transportation Infrastructure and Local Government Capital Enhancement Act - Establishes the Federal Bank for Infrastructure Modernization. Authorizes the Bank to make loans to any State, local government, Indian tribe, and regional or multistate organization for the development of certain transportation- and water and hazardous treatment-related capital infrastructure facility projects. Sets forth specified loan and borrower eligibility requirements."


Then introduced each successive year.

http://www.govtrack.us/congress/bill.xpd?bill=h110-3400

106th Congress: H.R. 2777: Transportation Infrastructure and Local Government Capital Enhancement ActDead

107th Congress: H.R. 1564 Dead
108th Congress: H.R. 4631 Dead
109th Congress: H.R. 5054 Dead


Testimony of Rep. Dennis Kucinich on Rebuilding America’s Infrastructure before the Budget Committee

http://kucinich.house.gov/News/DocumentSingle.aspx?DocumentID=26010


"Washington, Mar 8, 2001 - Our country is facing a crisis in our infrastructure. It is something we see every day when we sit in traffic bound by orange barrels that line our highways. It is something that schoolchildren experience at their desks, crowded together under leaking roofs. Right here in Washington, municipal sewer systems overflowed last year, washing millions of gallons of raw sewage into the Potomac and Anacostia rivers into the Chesapeake Bay. These incidents happen every year and happen with increasingly regularity as systems age. Infrastructure problems threaten our productivity, our economy, our environment and our health...


My bill would create a low-cost federal financing mechanism to administer $50 billion in zero- interest loans every year to localities for infrastructure projects for ten years. Twenty percent of these funds would be targeted for school construction and repair. States would be totally responsible for choosing which projects to fund with the loans according to their specific needs.

This bill would create the Federal Bank for Infrastructure Modernization (FBIM). The bank, as an extension of the Federal Financing bank under the Treasury, would administer the loans. The loans would bear a small fee of one-quarter of one percent of the loan principle to cover the administrative costs of the FBIM.

In order to provide the money for the loans, the FBIM would hold a portion of the Treasury securities that the Federal Reserve normally holds. The Fed currently holds about $300 billion in Treasury securities. By transferring about $50 billion annually to the FBIM, it would still allow the Fed to operate as it does now to add liquidity to the system. The Fed, instead of buying securities, would buy the mortgage loans of the states. This way, the FBIM’s finances would be integrated by the Federal Open Market Committee so as not to disrupt its ability to promote economic stability.

In his February testimony, Fed Chairman Alan Greenspan supported a very similar type of transaction. Already, the Open Market Committee conducts repurchase agreements in mortgage- backed securities guaranteed by the agencies. Greenspan stated: “the FOMC asked the staff to explore the possible mechanisms for backing our usual repurchase operations with the collateral of certain debt obligations of U.S. States and foreign governments.” This bill would follow this advice by providing the tool for the FOMC to integrate the mortgage loans of the states from the FBIM...

The Federal Bank for Infrastructure Modernization is a tool for leveraging the necessary funds. Cities and states would still be responsible for paying the net cost of the project, but by making the loans zero-interest, it cuts the overall cost of the project in half. This is a workable solution that goes a long way in addressing infrastructure needs. I come here today to seek the support of the Budget Committee. With your leadership, this bill could provide the ingenuity, the essential boost that projects need."


A little more info here.

http://kucinich.house.gov/Issues/Issue/?IssueID=1554

[SpiralHawk]

14. "Let the private sector profit from this." - Republicons

"Our patented 'conservative' policies created this mess, and by Gawd you can be sure we can find a way to make a buck for some of our elite cronies from it. Smirk."

- Republicons

[ohio2007]

15. A gas tax - for people who use the infrastructure using their gas powered vehicles

seems to be the best way to get things done in the past.... how's a nickle a gallon going to hurt now ?

[SergeyDovlatov]

17. See post #10. Only 60% of gas taxes are utilized for roads and bridges

Just force them to use remaning 40% for something related to infrastructure

[melm00se]

18. shhh!

this is a situation of "why do it yourself when you can pass the buck to somewhere else?"

Instead of looking to the feds (who haven't done enough/anything) why not do something completely novel and pay for it yourself?

[ohio2007]

19. 40% of the taxes collected basically goes missing in "red tape". No prob.

raise the gas tax 5 cents and 3 cents of that will go to the intended projects. the rest is obviously "overhead"