INFRASTRUCTURE BILL: IS IT ENOUGH? WHAT DO WE REALLY NEED?

By Chuck MacDonald

CEG CORRESPONDENT ing water systems, expanding high-speed federal gas tax currently stands at 18.4 cents “National Asphalt Pavement Association broadband Internet service to 100 percent of per gallon of gasoline and 24.4 cents per gal- [NAPA] and its members are committed to the nation, modernizing the electric grid and lon of diesel. The tax was last raised in building and maintaining our infrastructure

President Biden announced in April a $2 improving infrastructure resilience. That October 1993. The tax was not indexed for with the utmost goal of recycling, sustaintrillion plan to transform the economy with brings the total to $518 billion, or 24 percent inflation, which has increased 77 percent ability and concern for our environment and special emphasis on jobs, infrastructure and of the plan’s total cost.” since then. Congress has shown little inclina- resources,” said NAPA Chairman James green energy. The transportation piece of the tion to raise that amount. The taxes have (Jay) Winford Jr., president of Prairie proposal would direct $621 billion to fallen far short of what infrastructure Contractors Inc., Opelousas, La. roads, bridges, public transportation, airports and electric vehicles. “I believe by investing in needs exist. Even more stress on the infrastructure fund has been created Prior to the announcement, Transportation Secretary Pete transit, transit-oriented with the advent of more electric vehicles. Clearly, for the future, the Buttigieg spoke to a key congressional committee on March 25 and development, and for that government will be collecting less in gas taxes. told lawmakers “they have the best chance in any of our lifetimes to matter, rural main streets, in One Option: Tolls make a generational investment.” The House Transportation the right balance, we can Pay-as-you-go options exist and are growing. This includes tolls, Committee hearing was Buttigieg’s first appearance since his confirma- support people getting to which already exist in most states. Other options include charging the tion. “Wise transportation investments are key to making the where they need to be.” motorists by the amount they drive. Essentially, this system follows the American Dream accessible for all, leading our global competitors in innovation, getting people and goods Pete Buttigieg Transportation Secretary reasoning that those who drive more miles should pay more for the use of the roads. to where they need to be creating The idea of an EZ pass for all good jobs — jobs that are union or roads makes sense, and the technolopay prevailing wages — and tackling our cli- What Is Our Infrastructure? gy is advancing to make it possible on many mate crisis,” Buttigieg said. President Biden has referred to our infra- roads. However, for now, there are simply

The infrastructure proposal could include structure as “crumbling.” Is it really crum- too many cars, too many roads and the approximately $400 billion to combat cli- bling, though? billing and collections would be a nightmate change. The administration is consider- American infrastructure could be mare. ing tax increases to fund the program. described as: One method of making the necessary Buttigieg didn’t endorse any one approach • 2.7 million mi. of paved roads; taxes more palatable to both Congress and but said lawmakers had the option to rely on • 615,000 bridges; Americans is a word that had fallen out of fees on drivers, such as the gas tax, other • 140,000 mi. of freight railroad; favor — “earmarks.” Previous highway bills general tax revenue or borrowing. • 500 commercial airports; and had listed specific highway and infrastruc-

“I’ve heard loud and clear from members • 300 ports on the coasts, Great ture projects in each state, giving of Congress, Republican and Democratic, Lakes and inland waterways. Congressmen of both parties an easy way to that an infrastructure proposal needs to have The American Society of Civil Engineers point to money and jobs brought back to at least a partial funding source and I know 2021 report card gives the United States their constituents. The projects were listed that’s a challenging conversation,” he said. infrastructure a C-. That was its best grade in clearly for all to see.

Buttigieg has made appearances to help 20 years. The report states five category John Hudak, of the Brookings Institute, promote the administration’s $1.9 trillion grades — aviation, drinking water, energy, wrote about it in an article entitled, stimulus package. The kind of infrastructure inland waterways and ports — went up, “Earmarks are back, and Americans should package will need congressional support to while just one category — bridges — went be glad.” make it happen. down relative to ASCFE’s 2017 report card. “Earmarks, they serve a real purpose,”

Buttigieg has endorsed improving transit The impartial Congressional Research wrote Hudak. “They allow legislators — access as well. “I believe by investing in Service in its May 2020 report said that “the who well understand the needs of their distransit, transit-oriented development, and for number of bridges in poor condition has tricts/states — to target funds for important that matter, rural main streets, in the right dropped significantly over the past 20 years” projects that can solve policy problems and balance, we can support people getting to and that “a relatively modest increase in create jobs. Second, while abuses happen, where they need to be.” spending” between now and 2040 could the vast majority of earmarks were meant to

Advancing the package through the solve the problem. respond to constituents’ concerns and needs. Senate will likely require the support of sev- A 2019 study by the University of Third, earmarks have always composed a eral Republicans. Pennsylvania and Brown University con- miniscule portion of the discretionary budg-

Detractors of the plan are asking the ques- firmed that “over the past generation, the et, typically less than one percent, and fall tion, “How much of the bill can really be condition of the interstate highway network within a chairman’s mark — the top-line called infrastructure?” Fortune magazine’s improved consistently,” according to gov- number set for an appropriations bill’s cost. Jeff Colvin observed, “Infrastructure, as ernment data, seen as “its extent increased Finally, earmarking is not a Democratic promany people think of it, accounts for only modestly and traffic about doubled.” posal. Democrats and Republicans have $157 billion, or 7 percent, of the plan’s esti- Almost everyone agrees that improving endorsed their use.” mated cost.” He continued, “The definition our infrastructure is going to be expensive. Nonprofits representing the road building of infrastructure can reasonably be expanded Biden proposes raising corporate taxes. and construction industries have voiced the to include upgrading wastewater and drink- Others lean on increasing the gas tax. The thoughts of their members.

Looking at Infrastructure Needs

American Road and Transportation Builders Association (ARTBA) formed a blue-ribbon committee, composed of government and private industry, to take a deep dive into the needs of America’s infrastructure. The report, published in 2019, reveals strong priorities for upgrading infrastructure. Many of their points are often overlooked but would be essential in using funds efficiently for the benefit of the public as well as the companies doing the work. The report highlights the modernization of the 68,000-mi. National Highway Freight Network (NHFN) designated by Congress in 2015 as a top priority. The report calls the NHFN “America’s Economic Expressway.” This expressway includes the interstate highway system and its critical urban and rural connectors to the nation’s airports, rail hubs, major ports, inland waterways and pipelines. “Of all transportation infrastructure needs we have as a nation, improving the safe and efficient movement of goods is the key to increasing U.S. productivity, lowering the cost of things we produce and purchase, improving our environment and giving us the competitive edge in world markets.” The report emphasized the importance of supporting the infrastructure. It notes that approximately 70 percent of all freight is carried on interstate highways. This number is increasing every year with the increased shopping online and growing domestic energy industry. Future expansions make infrastructure support vial. The report continued, “Federal government forecasts say that by 2035 there will be 70 million more Americans and that truck shipments will have to grow by 40 percent to serve an expanding population and economy. Most Americans know our transportation network is not ready for that.” The report also looks at future issues like autonomous vehicles. “Strategic and targeted investments in the NHFN will help prepare our interstates for autonomous trucks, cars and communications platforms that will use technology to increase safety, cut traffic congestion, save fuel and improve air quality. Every state and every American would benefit such investments, no matter where they live.”  CEG

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