Thank you, Mr. Chairman. Madam Speaker, I rise today in opposition to this motion to instruct. The House needs to conference with the Senate and craft a long-term highway bill. In MAP 21, the Senate bill, there is a provision that was…
Thank you, Mr. Chairman.
Madam Speaker, I rise today in opposition to this motion to instruct. The House needs to conference with the Senate and craft a long-term highway bill.
In MAP 21, the Senate bill, there is a provision that was offered by Senator Bingaman that provided disincentive to States and cities to consider partnering with the private sector for fear of losing a percentage of its Federal funding. This is only one of the many problems I have with the Senate bill.
In my State of Indiana, Governor Daniels made the bold move to enter into a public-private partnership for the Indiana toll road. Indiana received over $4 billion up front for the lease of this road. When the Governor announced this public-private partnership, Members of this body were critical of the decision, and some even claimed that it would never work.
Not only has it been successful for the Indiana toll road, but it has also resulted in over $6.5 billion invested in infrastructure projects throughout Indiana. After 30 years of planning, Interstate 69 in my district is being built connecting Evansville, the third largest city in the State, to Annapolis.
The Indiana toll road is a perfect example of how business and government can work together to address America's infrastructure needs. The Bingaman amendment ignores these types of successes, and rather than rewarding, States are putting the American taxpayer first and pursuing alternative funding for roads. It will punish a State and take away portions of their Federal funding. Under the Bingaman amendment, Indiana would lose $72 million. Nevada, I should point out, will lose $66 million.
In these challenging fiscal times, public-private partnerships represent an exciting option to many States to better leverage their Federal transportation dollars. Congress should take positive steps to encourage innovative financing strategies like public-private partnerships rather than penalizing them. The only way to fully address our Nation's infrastructure needs is to involve the private sector. The Federal Government can't do everything.
Building America's Future,
April 16, 2012.
Hon. John Boehner,
Speaker, House of Representatives,
The Capitol, Washington, DC.
Hon. Nancy Pelosi,
Minority Leader, House of Representatives,
The Capitol, Washington, DC.
Dear Speaker Boehner and Minority Leader Pelosi: In order
to remain economically competitive, the United States must
have a modern 21st century transportation system. Goods must
move efficiently to market and people must reliably get from
their homes to their jobs or schools.
However, as you are keenly aware, transportation-funding
shortfalls are increasing at all levels of government, and
traditional funding sources are no longer keeping pace with
rapidly growing needs. As a result, states and cities have
had to increasingly look to innovative solutions, such as
partnering with the private sector (where appropriate) in an
effort to modernize their transportation networks. Now is
surely not the time to restrict the ability of states and
cities to innovate.
Yet, that is precisely what happened with the inclusion of
several harmful provisions in the Senate's transportation
bill (MAP 21). We are particularly concerned about language
that provides a disincentive to states and cities to consider
partnering with the private sector for fear of losing a
percentage of its federal funding; eliminates the option to
use Private Activity Bonds (PABs) to finance leased highway
projects; and changes the depreciation timetable for longterm
highway leases from 15 years to 45. Taken together or
individually, these provisions would have a chilling effect
upon future private investment in infrastructure, perhaps
even bringing it to a complete halt.
As the House continues to work on its multi-year
transportation bill, we urge you not to include any
provisions that would make it more difficult for states and
cities to continue to innovate and partner with the private
sector. In order to address our nation's enormous
transportation needs, states must rely on a variety of
options to fund and finance those needs. At a time when
federal funds are increasingly limited but needs are growing
exponentially, the last thing Congress should do is tie the
hands of governors and mayors by limiting the options
available to them.
Public private partnerships are not the solution to every
state's transportation funding challenges, but they are
certainly a piece of the solution.
Our own experience with public private partnerships in
infrastructure investment convinces us that the private
sector is looking for such long term stable investments and
that these partnerships must be a viable option for helping
to fund our transportation needs.
We urge you to protect the ability of states seeking
creative solutions to transportation funding challenges,
rather than creating roadblocks to leveraging state dollars
with private investment.
Sincerely,
Michael R. Bloomberg,
Mayor, City of New York.
Ed Rendell,
Former Governor, State of Pennsylvania.
Mitch Daniels,
Govenor, State of Indiana.