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Our Austere Future: CA Democratic Congressional Delegation Challenges Transportation Bill

by: Brian Leubitz

Thu Aug 04, 2011 at 15:30:00 PM PDT


35W Bridge Collapse Pictures, Images and PhotosProposed legislation would stymie important upgrades to our transportation network.

by Brian Leubitz

In a letter delivered to the Chair of the House Transportation Committee, California Democrats strongly objected to proposed cuts in transportation funding:

We are writing today to express our concerns about the recently released Republican proposal for the Surface Transportation Reauthorization Act that cuts almost 1/3 of current level funding for highways and mass transit.  Specifically, we urge you to reconsider the overall proposed funding level, which would further adversely affect the fragile economy in California and the nation.

In order to compete in the global market, we must invest in our infrastructure as our biggest competitor already does.  China spends 9 percent of their Gross Domestic Product (GDP) annually on infrastructure, while the U.S. spends less than 2 percent.  More startling is the fact that the U.S. spends 40 percent less than it needs every year to improve the outdated backbone of our country.

Equally concerning is the recently released study by the American Society of Civil Engineers.  The report shows that if we do not properly invest in our nation's infrastructure, we could lose more than 870,000 jobs, and suppress the growth of the country's GDP by $3.1 trillion by 2020. The report also showed that in 2010, deficiencies in America's roads, bridges, and transit systems cost American households and businesses more than $129 billion, including $32 billion in delays in travel time and $590 million in environmental costs.

In a time when the nation is clearly desperate for jobs, why are we embarking on a prolonged period of austerity? These transportation cuts would put people out of work right away, adding to our unemployment roles, and putting us on the wrong direction for the economy.

There are a great many ways that we should be spending money.  While we seem to have limitless funds for three wars, and the rich can party like it is 2006, how is it that we can't manage to ensure that our bridges don't collapse and that we have safe highways?

Find the full letter over the flip.

Brian Leubitz :: Our Austere Future: CA Democratic Congressional Delegation Challenges Transportation Bill
The Honorable John L. Mica
Chairman
Committee on Transportation and Infrastructure
2165 Rayburn House Office Building
Washington, DC

Dear Chairman Mica,

We are writing today to express our concerns about the recently released Republican proposal for the Surface Transportation Reauthorization Act that cuts almost 1/3 of current level funding for highways and mass transit.  Specifically, we urge you to reconsider the overall proposed funding level, which would further adversely affect the fragile economy in California and the nation.

In order to compete in the global market, we must invest in our infrastructure as our biggest competitor already does.  China spends 9 percent of their Gross Domestic Product (GDP) annually on infrastructure, while the U.S. spends less than 2 percent.  More startling is the fact that the U.S. spends 40 percent less than it needs every year to improve the outdated backbone of our country.

Equally concerning is the recently released study by the American Society of Civil Engineers.  The report shows that if we do not properly invest in our nation's infrastructure, we could lose more than 870,000 jobs, and suppress the growth of the country's GDP by $3.1 trillion by 2020. The report also showed that in 2010, deficiencies in America's roads, bridges, and transit systems cost American households and businesses more than $129 billion, including $32 billion in delays in travel time and $590 million in environmental costs.

The proposal to reduce funding in the Surface Transportation Reauthorization Act will have lasting and negative effects on the California economy.  In fact, the state would lose $468 million in public transportation funds and more than $1.25 billion in highway infrastructure investments.  This means a loss of 61,054 jobs in California.

We do commend you for including an expansion of the Transportation Infrastructure Finance and Innovation Act (TIFIA Program).  This federal loan program provides direct loans, loan guarantees and lines of credit to finance transportation projects of national and regional significance. In California, this would up project delivery by allowing projects to receive low-cost federal loans or bonds up front that would be paid back with dedicated tax revenue.

We urge you to reconsider the overall funding level for the Surface Transportation Reauthorization Act.  Our national infrastructure is failing and we cannot afford to cut funding if the cost is the success of our commerce and economic growth.  We look forward to working with you to address our country's infrastructure needs.

Sincerely,

Joe Baca
Karen Bass
Xavier Becerra
Howard Berman
Lois Capps
Dennis Cardoza
Jim Costa
Judy Chu
Susan Davis
Anna Eshoo
Sam Farr
Bob Filner
John Garamendi
Janice Hahn
Mike Honda
Barbara Lee
Zoe Lofgren
Doris Matsui
Jerry McNerney
George Miller
Grace Napolitano
Laura Richardson
Lucille Roybal-Allard
Linda Sanchez
Adam Schiff
Brad Sherman
Jackie Speier
Pete Stark
Mike Thompson
Maxine Waters
Henry Waxman
Lynn Woolsey

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Outstanding letter by the CDCD (3.00 / 1)
We need infrastructure investment in California. We need to expand and protect the TIFIA. It's basic Keynesian economics. So let's do it.  

Infrastructure financing (5.00 / 1)
Financing infrastructure is a little different than financing other public sector programs.  When you build a bridge or a highway, financing it through debt is appropriate because those who benefit from the building are the ones who are paying for it.  The debt instrument is an expression of the present value of a future benefit.  Not all infrastructure projects are worth building.  But aside from education, infrastructure has been the best investment we have made in California.  

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