UTICA — U.S. Representative Richard Hanna (R–Barneveld) today announced a bill that would re-establish state infrastructure banks to help fund local transportation initiatives.
He made the announcement with Mayor Robert (Rob) Palmieri (D–Utica) at Utica City Hall, Hanna’s office said in a news release.
The proposal, the State Transportation and Infrastructure Financing Innovation Act (STIFIA), would amend another proposed bill intended to update the federal highway bill.
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That bill, titled Moving Ahead for Progress in the 21st Century Act, is referred to as MAP-21, according to Hanna’s office.
STIFIA would amend MAP-21 to authorize, but not require, states to establish infrastructure banks using existing federal transportation dollars through 2014.
Citing “deteriorating” roads, bridges, and ports nationwide, Hanna figured STIFIA would ensure funding for local infrastructure projects, his office said.
The proposal would revive state infrastructure banks to provide loans, short- or long-term construction-debt financing, or lines of credit to highway or transit projects in local communities.
Communities face a “number of challenges” with financing transportation projects, Palmieri said in the news release.
“This legislation can provide more options for cities like Utica to ensure critical local transportation projects are funded,” Palmieri said.
State infrastructure banks have worked in the past, Hanna contended in the news release.
“During difficult budgetary times, these banks seeded with federal dollars can help leverage private investment in local projects right here in the Mohawk Valley and across the nation. This is precisely the type of cost-effective, flexible, and innovative transportation policy that Congress should support now more than ever,” Hanna said.
Hanna sits on the House Transportation & Infrastructure Committee, according to his office.
The Congressman introduced the bill with U.S. Representative Janice Hahn (D–Calif). Hahn also serves on the same committee.
Congress in 2005 approved a program for infrastructure banks, which authorized states to use up to 10 percent of their existing federal transportation dollars to establish such a bank for the purpose of financing local road or transit projects.
State infrastructure banks pooled public and private resources to finance these projects.
The program expired in 2009. Federal lawmakers “inadvertently” omitted the program from reauthorization in the most recent highway bill, MAP-21, Hanna’s office said.
Contact Reinhardt at ereinhardt@cnybj.com
