Comments on: Infrastructure Bank Plan Gaining Attention And Momentum http://www.streetsblog.org/2009/05/26/infrastructure-bank-plan-gaining-attention-and-momentum/ Covering the New York City Streets Renaissance Mon, 23 Nov 2009 11:07:22 -0500 http://wordpress.org/?v=2.8 hourly 1 By: Todd Edelman http://www.streetsblog.org/2009/05/26/infrastructure-bank-plan-gaining-attention-and-momentum/comment-page-1/#comment-68751 Todd Edelman Wed, 27 May 2009 08:09:13 +0000 http://www.streetsblog.org/?p=6244#comment-68751 Right... how about a "Sustainable Infrastructure Bank"? Right... how about a "Sustainable Infrastructure Bank"?

]]> By: Larry Littlefield http://www.streetsblog.org/2009/05/26/infrastructure-bank-plan-gaining-attention-and-momentum/comment-page-1/#comment-68711 Larry Littlefield Tue, 26 May 2009 19:06:15 +0000 http://www.streetsblog.org/?p=6244#comment-68711 "Larry Littlefield is right that this is fundamentally a new way of issuing debt off the ledgers of the US Treasury or states and localities." Deferred maintenance of our infrastructure is also an off the books debt. So are public employee retirement benefits that are promised but not fully funded, based on ridiculous assumptions about the rate of return on current assets. The massive on the books debts, of course, are in addition. The question is what happens when the bailouts stop because the federal government can't borrow anymore? "Larry Littlefield is right that this is fundamentally a new way of issuing debt off the ledgers of the US Treasury or states and localities."

Deferred maintenance of our infrastructure is also an off the books debt. So are public employee retirement benefits that are promised but not fully funded, based on ridiculous assumptions about the rate of return on current assets.

The massive on the books debts, of course, are in addition.

The question is what happens when the bailouts stop because the federal government can't borrow anymore?

]]> By: Bedfellows http://www.streetsblog.org/2009/05/26/infrastructure-bank-plan-gaining-attention-and-momentum/comment-page-1/#comment-68709 Bedfellows Tue, 26 May 2009 18:51:42 +0000 http://www.streetsblog.org/?p=6244#comment-68709 The "U.S. Chamber of Commerce, the AFL-CIO and Felix Rohatyn" all support the infrastructure bank because they, and the interests they represent--- the building trades, construction contractors and Wall St --- all stand to make money from it. Larry Littlefield is right that this is fundamentally a new way of issuing debt off the ledgers of the US Treasury or states and localities. Cities and states have maxed out their borrowing and don't want to raise gas/VMT taxes or transportation user charges. The question is whether it is easier to default on loans from this bank or bond issuances. Odds are the states and cities borrowing the money believe the feds will ultimately let them slide because it will be too politically difficult too collect. One thing politicians of all stripes believe is that their constituents deserve a break. If this things happen, NYC and the MTA should borrow as much as they can as fast as they can and then try to shove the costs off on the feds like everyone else will. Since NYC sends billions more to Washington than it gets back, this is a rare chance to cash in and bring the money home. The "U.S. Chamber of Commerce, the AFL-CIO and Felix Rohatyn" all support the infrastructure bank because they, and the interests they represent--- the building trades, construction contractors and Wall St --- all stand to make money from it. Larry Littlefield is right that this is fundamentally a new way of issuing debt off the ledgers of the US Treasury or states and localities. Cities and states have maxed out their borrowing and don't want to raise gas/VMT taxes or transportation user charges. The question is whether it is easier to default on loans from this bank or bond issuances. Odds are the states and cities borrowing the money believe the feds will ultimately let them slide because it will be too politically difficult too collect. One thing politicians of all stripes believe is that their constituents deserve a break. If this things happen, NYC and the MTA should borrow as much as they can as fast as they can and then try to shove the costs off on the feds like everyone else will. Since NYC sends billions more to Washington than it gets back, this is a rare chance to cash in and bring the money home.

]]> By: Larry Littlefield http://www.streetsblog.org/2009/05/26/infrastructure-bank-plan-gaining-attention-and-momentum/comment-page-1/#comment-68704 Larry Littlefield Tue, 26 May 2009 17:31:37 +0000 http://www.streetsblog.org/?p=6244#comment-68704 Generation Greed strikes again. Rather than have the federal government use taxes to pay for a few years of infrastructure investment, they'll loan money to state and local governments. Who will pay it back, how? This isn't new revenues, it's new debt. The "innovation" is that the federal government doesn't count it as debt because it is with a "bank." And state and local governments don't have to try to borrow money from anyone who would be lending their own money, and thus worried about repayment. What's important is now how it will be paid back, but when. When Generation Greed finishes sucking every last dime out of the future and then passes on. Generation Greed strikes again.

Rather than have the federal government use taxes to pay for a few years of infrastructure investment, they'll loan money to state and local governments.

Who will pay it back, how?

This isn't new revenues, it's new debt. The "innovation" is that the federal government doesn't count it as debt because it is with a "bank." And state and local governments don't have to try to borrow money from anyone who would be lending their own money, and thus worried about repayment.

What's important is now how it will be paid back, but when. When Generation Greed finishes sucking every last dime out of the future and then passes on.

]]> By: Ian Turner http://www.streetsblog.org/2009/05/26/infrastructure-bank-plan-gaining-attention-and-momentum/comment-page-1/#comment-68703 Ian Turner Tue, 26 May 2009 17:17:29 +0000 http://www.streetsblog.org/?p=6244#comment-68703 Barnard, What is the policy justification for replacing the gas tax with a VMT tax? As far as a carbon tax on driving, it seems like that can just be rolled into the gas tax: The amount of carbon emitted per gallon of gasoline does not depend on the efficiency of the automobile in question. Barnard,

What is the policy justification for replacing the gas tax with a VMT tax?

As far as a carbon tax on driving, it seems like that can just be rolled into the gas tax: The amount of carbon emitted per gallon of gasoline does not depend on the efficiency of the automobile in question.

]]> By: Barnard http://www.streetsblog.org/2009/05/26/infrastructure-bank-plan-gaining-attention-and-momentum/comment-page-1/#comment-68700 Barnard Tue, 26 May 2009 16:17:32 +0000 http://www.streetsblog.org/?p=6244#comment-68700 It's good to see lawmakers talking at least 1 new way of raising revenue for transportation. The highway trust fund, which pays for pretty much all of the federal government's share of the surface transportation budget (highways and transit), will go broke before we see a new federal transportation bill. In addition to coming up with new revenue streams, I think they need to go back and fix the existing ones. Two panels of experts--the National Surface Transportation Infrastructure Financing Commission and the National Surface Transportation Policy and Revenue Study Commission--released reports in the past two years recommending that the U.S. raise the gas tax and peg it to inflation. That's a first, interim step to fixing things. In the long-term, government should consider replacing the gas tax with a VMT fee (as was tested in Oregon and Seattle recently), a carbon tax and/or any other ways to better internalize the costs of driving a private motor car, get rid of the massive subsidies we all provide for drivers and provide more funding greener, healthier transportation. Do others have ideas on this? It's good to see lawmakers talking at least 1 new way of raising revenue for transportation. The highway trust fund, which pays for pretty much all of the federal government's share of the surface transportation budget (highways and transit), will go broke before we see a new federal transportation bill.

In addition to coming up with new revenue streams, I think they need to go back and fix the existing ones. Two panels of experts--the National Surface Transportation Infrastructure Financing Commission and the National Surface Transportation Policy and Revenue Study Commission--released reports in the past two years recommending that the U.S. raise the gas tax and peg it to inflation. That's a first, interim step to fixing things.

In the long-term, government should consider replacing the gas tax with a VMT fee (as was tested in Oregon and Seattle recently), a carbon tax and/or any other ways to better internalize the costs of driving a private motor car, get rid of the massive subsidies we all provide for drivers and provide more funding greener, healthier transportation.

Do others have ideas on this?

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