Obama Talks Infrastructure

BY JENNIFER WARBURG
October 19, 2010

In a speech last week on infrastructure investment, President Obama recommitted his administration to a "fundamental overhaul" of the nation's infrastructure, following up on a previous Labor Day announcement that had excited smart growth advocates and set off speculation about the form such a "second stimulus" or "infrastructure bank" would take.

When Obama was elected, supporters of progressive transit talked excitedly about a "new New Deal." Comprehensive national infrastructure plans have guided each era of American growth and development. America 2050, a national coalition that SPUR is a part of, created a prospectus for a modern national plan modeled on three prior ones: the Gallatin Plan of 1808, the Inland Waterways Commission Plan of 1908 and the National Toll Road and Free Road Plan of the 1930s.

The president has rhetorically endorsed progressive national infrastructure investment for this era. In his Columbus Day speech he called for "a smart system of infrastructure equal to the needs of the 21st century; a system that encourages sustainable communities with easier access to our jobs, to our schools, to our homes"¦a system that reduces harmful emissions over time and creates jobs right now."

Yet over the past week the administration showed signs of backing away from pushing such legislation forward this year, leaving observers scratching their heads.

Are these high-profile announcements solely political? An attempt to energize the base during election season? Or are they serious agenda-setting statements? Most importantly, will progress actually be made this year in Washington on modernizing our country's infrastructure?

While this proposal may seem like a political trial balloon this fall, infrastructure spending will likely anchor the legislative agenda for 2011. Why? Because it has bipartisan support and strong backing from financial interests, state and municipalities. Infrastructure spending has typically been an enterprise that Republicans and Democrats agree upon and could provide an area of consensus in a divided legislature. It's exactly the type of modest legislation that President Clinton used in 1995 and '96 to move forward after losing party control of Congress.

Obama's infrastructure investment proposal is, in effect, a $50 billion down-payment on the $450 billion six-year transportation bill that failed to pass Congress last year. Note also that the $50 billion does not come close to the $2.2 trillion the American Society of Civil Engineers says is needed to repair existing infrastructure. But a $50 billion investment "jumpstart" is a pragmatic way of moving forward on urgent repairs.

The president has proposed to change the way transportation funding works, in particular by using some sort of performance-based criteria rather than "return to source" or earmarks; but who knows? This is the always-announced, never-implemented agenda of the reformers.

infrastructure

Rails or roads? [Photo Credit: flickr user jr⁹⁸⁶⁶⁴]

 

Here's how the timeline of this legislation could play out in Washington:

  • Look for an 11th hour attempt by Democrats to bring up Obama's infrastructure plan in November's lame-duck Congress; Republicans will rebuff it.
  • In January, when the new, 112th Congress convenes there will be a good month of gavel-shifting and maneuvering.
  • Infrastructure spending will be seriously discussed again in February when Republicans must begin to share responsibility for hastening and improving the economy's "jobless recovery."
  • Most important will be the President's Fiscal Year 2012 proposal budget, which will be announced at the end of January after the State of the Union address. In all likelihood, when the President releases his budget, there will be a specific line item for the infrastructure bank.
  • How Congress responds to the 2012 budget proposals in March and April will be crucial. But the groundwork for this debate should be developed now, and in the weeks immediately ahead.

With transportation bills of any type, there is always a fight over which portion goes to more highway construction and what portion goes to energy-efficient transit. SPUR has of course advocated that the country shift as much funding as possible to transit. But even if that goal is politically ahead of the legislature, we should at least be able to provide an equal federal funding match to transit and highway projects, rather than paying a higher share of highways as is the practice today.

There are a lot of politics to get through. We have joined the Transportation for America coalition as our show of support for a forward-looking investment in a better transportation system. We hope the president's $50 billion proposal, which covers transit and much else, will help get the ball rolling on what surely must be a national priority.