Creating a National Infrastructure Bank
by Karl Stark | June 09, 2011
On his show Wednesday, MSNBC host Dylan Ratigan highlighted the need for a national infrastructure bank:
The possibility that Congress won’t increase the debt ceiling in time makes the need for a national infrastructure bank all that much greater. State and local governments still face massive budget shortfalls resulting from the economic crisis and decreased revenues, and are simply unable to take on infrastructure improvement projects given budgetary constraints.
Making matters worse, the Wall Street Journal reported, the number of insurers willing to back up repayment of bonds has sharply declined, making it even more difficult for states and municipalities to issue infrastructure bonds. As a result, “This has caused a growing backlog of economically justifiable projects that cannot be financed. Among the projects most at risk are projects of national or regional significance that span multiple states. The writing is on the wall: Our aging infrastructure will eventually constrain economic growth.”
The issue has already brought together strange bedfellows, most notably the AFL-CIO and the U.S. Chamber of Commerce. In March, AFL-CIO president Richard Trumka and U.S. Chamber of Commerce president Tom Donohue urged the creation of the bank, which would “close America’s widening infrastructure funding gap, create millions of American jobs in the next decade, and make the United States more competitive in the 21st Century.”
The urgency of the issue has also brought together members of Congress from both sides of the aisle. Following the call to action by presidents Trumka and Donahue, Sens. John Kerry (D-MA), Kay Bailey Hutchinson (R-TX), Mark Warner (D-VA) and Lindsey Graham (R-SC) introduced the Building and Upgrading Infrastructure for Long-Term Development (BUILD) Act, which would establish an infrastructure bank: the American Infrastructure Financing Authority.
AFSCME strongly supports federal investment in improving our nation’s infrastructure. We should utilize every tool available to rebuild the economy and get Americans back to work. At the same time, we have emphasized the importance of improving and developing publicly owned and operated infrastructure, and strongly opposed the direct or indirect financing of projects that will result in the privatization of public facilities.
In moving forward with infrastructure bank legislation, existing workers must not be displaced or otherwise harmed through a change in operations and management as a result of a project. AFSCME shares President Obama’s view that when public funds are used it is inappropriate for private contractors to oversee work of other private contractors. It's crucial that this legislation should provide for project oversight and inspection to be undertaken by public agency staff, whose sole allegiance is to the public interest.
