Horowtiz: It's Time to Get Serious about Fixing Our Infrastructure
Rob Horowitz, GoLocalProv MINDSETTER™
Horowtiz: It's Time to Get Serious about Fixing Our Infrastructure
The essential, but neglected task, of maintaining and upgrading our roads, bridges, airports electrical grid, sewer systems, and public transit, is a rare issue that unites business and labor. Both support substantially increased funding across the board with the most immediate priority of replenishing the Highway Trust Fund, either by boosting the 18.4 cents a gallon gas tax that is now insufficient even to fund road repairs or finding an alternative permanent supplementary funding source. Right now, the Congressional Budget Office projects a $170 billion shortfall over the next 10 years for the Highway Trust Fund, according to The Hill. And without Congressional action, the fund runs out of money this year at the end of this month.
The American Society of Civil Engineers (ASCE) estimates that $3.6 trillion of investment across the board is needed by 2020 to make US infrastructure safe and dependable. In their most recent report card, they give US infrastructure as a whole a nearly failing “D+” grade.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAs anyone who travels on our roads or flies knows, to remain competitive economically we must make dramatic improvements. In a global economy, where the rapid movement of people and goods is essential to economic success we continue to fall behind.
Further, investing in infrastructure creates good paying jobs. As Joseph Kane and Robert Puentes point out in a recent analysis done for the Brookings Institution, “infrastructure jobs usually represent long-term, well-paid opportunities for the two-thirds of U.S. workers who lack four-year college degrees.” The authors assert that these jobs pay up to30% more than other jobs available to low income workers.
Given the pressing need and the strong support of key interest groups one would think that it would be a ‘no-brainer’ for Congress to boost infrastructure funding. Yet, because new revenue is needed, every year, including this one, it is an adventure just to plug the holes in The Highway Fund. There is some hope, however, for breaking the log jam. Bi-partisan support for new sources of revenue, such as the ‘Repatriation Tax’ proposed by Senators Rand Paul (R-KY0 and Barbara Boxer (D-CA) and backed by President Obama , is increasing. The Repatriation Tax would be a tax on overseas profits brought back into the country.
Another idea whose time may be coming is forming a National Infrastructure Bank, using initial public seed monies to leverage private investment. This is an Obama Administration proposal, which has attracted some Republican support.
The time is now to stop talking about the need to repair our aging infrastructure and to make the smart investments so long overdue. Here’s to hoping that some time in the near future we won’t need Infrastructure Week to get Congress to perform this most basic and essential of tasks.
Rob Horowitz is a strategic and communications consultant who provides general consulting, public relations, direct mail services and polling for national and state issue organizations, various non-profits and elected officials and candidates. He is an Adjunct Professor of Political Science at University of Rhode Island.
Leaders on Fixing RI's Economy
Leadership Issues
Dr. Edward Mazze, URI Distinguished Professor of Business
"Knowing who is in charge when it comes to setting policy, making things happen and being able to mobilize resources to support policy. Economic development in Rhode Island is fragmented, cities competing against cities, cities competing against the state, the executive branch competing against the legislature. There is no "one state" economic development focus. The Governor has to be in charge in charge of setting policy, and have the resources to accomplish her objectives.
ECONOMIC GAME CHANGER: Line item veto so the Governor can make things happen."
State Taxes
Dr. Edward Mazze, URI Distinguished Professor of Business
"State taxes (business and personal income, sales, estate) and local taxes (property) impact every decision a business makes. High taxes exist in Rhode Island because the state is divided into so many cities and towns needing funds to support their activities. The state needs to look at different ways to reorganize local government structure. Without a new structure, state and local governments will continue to have increasing deficits which will require increasing taxes.
ECONOMIC GAME CHANGER: Government-Business Task Force under the leadership of the Lieutenant Governor to recommend a structure best suited to provide the services required by Rhode Island taxpayers in a more economic and efficient manner."
Recruiting
Dr. Edward Mazze, URI Distinguished Professor of Business
"The best recruiters for economic development are the business community. Chambers, professional groups and educational institutions play a role an important role in this activity but it is nowhere as important as the role played by individual business people/leaders. Many of Rhode Island's largest businesses are "owned" and/or "headquartered" in other states or countries.
ECONOMIC GAME CHANGER: Getting business people "invested" in economic development and letting the private sector do their thing."
Support vs. Stars
Dr. Edward Mazze, URI Distinguished Professor of Business
"Reaching for the giant business "stars" and not taking advantage of the state's strategic assets, namely, the small business community. The state's strategic location and assets provides a competitive advantage to marine industries, the hospitality industry, exporting and importing, health and education and professional services- many of these industries are made up of small/medium sized businesses.
ECONOMIC GAME CHANGER: Providing the support ( tax credits, less burdensome regulations, a better tax structure) for small businesses to survive and grow. Small businesses are the Main Street businesses in Rhode Island and create jobs."
Multi-Faceted Approach
Gary Sasse, Founding Director of the Hassenfeld Institute for Leadership at Bryant University and Former Director of Administration
"The centerpiece of an economic development strategy is the productivity with which a state uses its human and capital resources. Only businesses can create jobs and economic growth. Therefore, states compete to offer the most productive climate for the private sector to succeed.
There is no silver bullet. Making Rhode Island economic competitive requires a five-part strategy encompassing workforce development, urban education reform, tax competitiveness, targeted recruitment and retention and technology commercialization with an emphasis on middle class jobs and small business."
195 Incentives
Laurie White, President, Greater Providence Chamber of Commerce
"I would...add that the $25 million incentive pool to maximize a game changing investment on the 195 lands is critically important for many reasons including sending a signal that RI's period of unilateral disarmament is over."
Game Changes Needed
Larry Girouard, RI Taxpayers
"There is not one game changer that will begin to drive the RI brand up the competitive ladder ... Rhode Island will need a series of “game changes” if the business community is to take notice.
*Line Item Veto for the Governor ... 44 states have this. The Line Item Veto will provide some checks and balances regarding leadership spending.
* Put real teeth in the ethics commission ... need I say more
* Develop a more stringent approach to bills where, in the short term (1-2 years) the focus will be on only those bills that have an impact on the RI competitive brand. Each bill should have an economic impact statement associated with it to justify the legislature spending its valuable time on it.
* All bonds over $50,000 must be approved by the voters.
