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July/August 2017 – BizVoice/Indiana Chamber

65

Private activity bonds were used “to help

build the East End Bridge from the east end

of Louisville to southern Indiana and to

rework traffic patterns on the Indiana side of

the river,” he explains. “So we know that

financing mechanism is an effective one.”

Carson’s firm belief is “private investment

can’t tackle most transportation projects.

Certainly not without a robust public funding

apparatus alongside.

“It has almost no applicability, especially

for smaller projects without revenue

streams – like rural highways. … It just

doesn’t make sense.”

Young agrees that private capital isn’t always

going to be the solution, but stresses his concern

over adding to the $20 trillion national debt.

“In short, we need public-private

partnerships, but they can’t pay for

everything. They tend to work in certain

types of settings, where you have a lot of

traffic and predictable traffic patterns.”

Young’s final thought on P3s: “We

should look beyond our own shores for

private capital. I see real opportunity there.”

Separately, the Transportation Infrastructure

Finance and Innovation Act (TIFIA) program,

which provides credit assistance to significant

projects, is set for an increase of a billion

dollars every year.

Young says TIFIA is very popular and

he’s heard from mayors and contractors in

Indiana who wanted that preserved or expanded.

“That merits strong consideration for inclusion

in whatever infrastructure legislation might

wind its way through Congress.”

Power to the states

The administration has made it clear that

transferring more responsibilities to states is

desired.

In the budget overview, it notes that the

federal government “acts as a complicated,

costly middleman between the collection of

revenue and the expenditures of those funds

by states and localities.”

All three delegation members are eager

to see Indiana have more control.

“If Indiana has shown the country anything,

it’s that oftentimes state-level solutions are

better. When Washington comes up with

solutions, there ought to be flexibility imbedded

within those so that states can tailor

infrastructure investments and other public

policies to the unique needs of their own

population,” Young describes.

Carson cautions that there will need to

be proper federal oversight.

“We don’t want these funds going to

different states without any stipulations,

because if there aren’t stipulations attached to

the funding, you’re going to have another

slush fund where roads and bridges can be

ignored and that money is going to other

areas ... but states know their needs better

than the federal government.”

Rokita has no hesitation in the matter:

“I’m completely comfortable with devolving

as much power to the states as possible.”

About that bipartisanship…

Though it’s third in the queue behind

health care and tax reforms, infrastructure

appears to be the only one among them with

any chance for bipartisan support. The question

is what effects the other two battles and the

heightened political environment will have by

the time the focus turns to infrastructure in

the fall or early 2018.

Carson announces: “We have over 10,000

roads and bridges that need to be repaved,

resurfaced, rebuilt in our country. … I’m

willing to work with anyone to revitalize

American’s infrastructure and provide the

necessary foundation for job growth and

opportunities.

“The federal government needs to invest

in the basic needs of the American people and

not make cuts to already limited resources, I

know that my Republican colleagues are on

this European austerity push, but we’re not

Europe. We’re America.”

Rokita quips, “Quite honestly, the talk

we are getting out of Democrats right now

isn’t on infrastructure. It starts off with

Russia, Russia, Russia and then the fourth

thing is (former FBI director Jim) Comey and

the fifth is 'hell no on health care' – and then

it’s down the road from there.

“My hope is that they relieve themselves

of their partisanship and work with us on all

these things.”

Last word

For Carson, public transportation is top

of mind for his constituents.

“(It) spurs economic growth in

communities. For every $1 spent, it generates

$4 in economic returns. I’m deeply concerned

about (where) public transportation (fits in

the picture).

“In a very real sense, a lot of my

Republican colleagues are on board because

they come from urban centers or rural

districts that have growing transportation

needs,” he insists. “And it’s especially

important with millennials; they don’t drive.”

Young’s goal is simple: “I want Congress

to look for every opportunity to expand the

scope of our investment beyond direct federal

spending.

“That will probably mean empowering

the states to do more with their own

investments through regulatory relief and

possibly through some programmatic changes.”

Rokita also returns to his fiscally

conservative roots. “Our biggest threat and

the most unfair thing we’re doing to the next

generation is not paying for the things that we

are doing with money. That has to be part of

the discussion.

“I can certainly argue that a road, a bridge,

a lock, a dam – those kinds of things – are

good investments. Even if they aren’t paid for

immediately, the next generation will be able

to use them. So in that sense, this kind of

government spending is better instead of let’s

say food stamps, which doesn’t really help the

economy long term or the next generation.”

RESOURCES:

Read more about the President’s infrastructure overview in his budget proposal at

www.whitehouse.gov/omb/budget

(under fact sheets) |

Sen. Todd Young at young.senate.gov | Congressman André Carson at carson.house.gov | Congressman Todd Rokita at rokita.house.gov

Senator Todd Young hopes

that “as we approach

infrastructure investment in

a bipartisan way, everyone

will agree not all states are

created equally and have

all the same preferences

and needs.”