Your vote, your crummy highways

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Your vote, your crummy highways

The economy is in trouble - so are the roads, bridges and trains it depends on. Here's a close look at how the candidates would fix the problem.

NEW YORK (CNNMoney.com) -- The economy isn't the only thing falling apart in the United States.
Much of the nation's infrastructure - the highways, bridges, airports and transit lines that keep the American economy humming - is also crumbling and in dire need of improvement. Clearly, a top job for the next president will be finding the funds to fix these sprawling systems.

In fact, it would take $1.6 trillion over five years to address the nation's infrastructure problems, according to a 2005 report by the American Society of Civil Engineers, which gave the country's system a "D."
Both presidential candidates have acknowledged the importance of rebuilding the roads and rails, but have offered very different solutions. John McCain, the Republican nominee, advocates shifting financing from earmarks to high-priority projects, while Barack Obama, his Democratic challenger, would create a federally-funded bank to invest in improvement projects.

Experts, however, say what's really needed is money and a lot of it.
One of the main reasons the nation is in this sorry state is that the federal government has pulled back on funding improvement projects. Fifty years ago, the federal government allocated 10% of its non-defense spending on infrastructure, said Polly Trottenberg, executive director of Building America's Future, a coalition of elected officials advocating increased infrastructure funding. Nowadays, the amount has shriveled to between 3.5% and 4%.

"A significant increase in investment is required at all levels," said John Horsley, executive director of the American Association of State Highway and Transportation Officials, a trade group. "We can't deliver services and sustain the highways and bridges."

Whoever wins will have to address the issue next year since Congress must reauthorize the federal transportation spending law, which expires in September 2009. The current law, approved in 2005, allocates $286 billion to highway and transportation projects.

"The next administration will have an important role to play in setting the vision for the federal transportation program for the 21st century," said Robert Puentes, fellow at the Brookings Institution's Metropolitan Policy Program.


More:

http://money.cnn.com/2008/10/15/news/economy/infrastructure_and_economy/?postversion=2008101506

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1. This Is Obama's Plan

Obama's infrastructure bank

His plan: The centerpiece of the Democratic presidential nominee's infrastructure plan is a $60 billion National Infrastructure Reinvestment Bank, which would expand and enhance existing federal projects. It would also seek to bring in private-sector funds.

The bank would be funded over 10 years with money saved by reducing the nation's involvement in Iraq.

"But when it comes to rebuilding America's essential but crumbling infrastructure, we need to do more, not less," Obama said in June before the U.S. Conference of Mayors. "Maintaining our levees and dams isn't pork barrel spending, it's an urgent priority, and that's what we'll do when I'm president. The work will be determined by what will maximize our safety, security, and shared prosperity."

In addition to improving roads, Obama supports investing in mass transit to bolster metropolitan areas. He also supports investing in high-speed trains.

Obama is also looking at infrastructure as an opportunity to stimulate the economy. He estimates that the projects the bank finances would create up to two million jobs - both those directly involved in the project and indirectly supporting it, such as suppliers - and generate approximately $35 billion a year in economy activity.

In addition, Obama wants to create a $25 billion emergency Jobs and Growth Fund to replenish the Highway Trust Fund, prevent cuts in road and bridge maintenance and fund school repairs. It would create or save one million new jobs.

Experts say: Obama has consistently supported greater spending on infrastructure. They were also pleased he did not advocate suspending the federal gas tax.

Most favor the creation of an infrastructure bank that can harness the financial power of the private sector, which is increasingly interested in leasing or investing in highways and airports. Setting up such a bank also would make the federal government more involved in infrastructure projects than it is now.

Still, $60 billion over 10 years is a far cry from what's needed to address the nation's crumbling roads and bridges, they said.

"It would be a small improvement," Puentes said. "There's still a long way to go."

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