Press

Lobby Group Pushing New Funding for Roads

Posted on Friday, April 25, 2003
Source: The Bond Buyer
By Humberto Sanchez

Former Virginia Gov. James S. Gilmore 3d is leading a lobbying campaign to build more roads around the nation, as the co-chairman of the newly formed Coalition for Innovative Transportation Solutions.

The Washington-based coalition's mission is to increase highway construction by promoting innovative financing techniques and to persuade lawmakers to include these funding methods in the next version of the Transportation Equity Act for the 21st Century, or TEA-21, which expires Sept. 30, according to coalition executive director Shirley Ybarra.

"We support anything that can deliver highways faster," Ybarra, who served as Virginia's Secretary of Transportation during Gilmore's administration, said yesterday in an interview. "And faster means cheaper."

The financing techniques the group is pushing include allowing private companies to use an unlimited amount of tax-exempt bonds to finance the construction of transportation infrastructure projects -- a method similar to one the White House is considering including in its TEA-21 reauthorization proposal.

According to a draft of the White House's TEA-21 proposal, highway projects and intermodal freight projects on or near a national highway would be eligible for financing with tax-exempt private-activity bonds that are exempt from the private-activity bond volume cap.

The highway building group, which Ybarra started last year, also supports expanding the state infrastructure bank pilot program to all 50 states and the territories. Under the SIB program, states provide low-interest loans to local governments for highways, transit, and other transportation projects, but TEA-21 permits only four states -- California, Florida, Missouri, and Rhode Island -- to augment their funds with TEA-21 federal transportation grants. As a result, most states' programs have failed to take off as expected. Thirty-nine states are authorized to operate SIBs, and several states are authorized to leverage their funds by issuing bonds, but few have done so.

The coalition also backs lowering the eligibility threshold for project assistance under the Transportation Infrastructure Finance and Innovation Act, or TIFIA. The TIFIA program currently provides direct loans, loan guarantees, and lines of credit for up to 33% of the construction cost of major surface transportation projects costing at least $100 million, and the coalition wants that threshold lowered to $50 million.

The group, which represents several companies involved in building and financing transportation projects, also advocates the use of innovative contracting techniques, including asset management. Former Nevada Gov. Bob Miller is expected to be named co-chair of the group, but the Democrat's appointment has not yet been announced.

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The Coalition for Innovative Transportation Solutions
955 26th Street, N.W., Suite 905
Washington, D.C. 20037-2009
(202) 333-4078
Press Contact:
Emily Adcock: 202.454.6632
eadcock@navigantconsulting.com

For Immediate Release

FORMER GOVERNORS JIM GILMORE AND BOB MILLER TO CO-CHAIR
COALITION FOR INNOVATIVE TRANSPORTATION SOLUTIONS

Coalition to Seek New Ways to Develop and Finance Road Repair and Construction

Washington, D.C. – March 11, 2003 –The Coalition for Innovative Transportation Solutions today announced that former Governors Jim Gilmore of Virginia and Bob Miller of Nevada will serve as co-chairs of the Coalition. Both Gilmore and Miller bring with them extensive hands-on experience in addressing the growing necessity to repair or replace our nation’s major roads and highways at a time of budget deficits and dwindling resources.

“The increased demands for mobility, freight movement, and economic development are making it more and more difficult for federal, state, and local governments to maintain their current infrastructures,” said Shirley Ybarra, Executive Director of the Coalition. “Governors Gilmore and Miller understand these pressures and have faced these challenges. Their experience and relationships with elected officials will be a great asset to our efforts.”

The Coalition is dedicated to exploring new ways of designing, developing, and financing road repair and construction across the United States, and seeks to encourage states to utilize innovative financing and contracting methods by providing incentives for and removing legislative obstacles to innovative approaches. The coalition’s members include AECOM Consulting, Ashland, Detroit River Tunnel Partnership, Halliburton KBR, The Louis Berger Group, Koch Industries, Nossaman Infrastructure, Parsons Brinkeroff/PB Consult, Salomon Smith Barney, and VMS, Inc.

“Throughout my public service career in Virginia, I have advocated and implemented innovative solutions in all areas of government, especially transportation,” said Gilmore. “I am pleased to continue that advocacy as cochairman of this national transportation industry coalition.”

“Finding new ways to improve our nation’s transportation infrastructure is an imperative,” said Miller. “Our highways are rapidly aging, and without creative and innovative approaches to financing, designing, and building these roads we will not be able to keep up with this country’s growing needs.”

A native of Richmond, Virginia, Gilmore was elected governor in November 1997 and held that position through 2001. He graduated from the University of Virginia in 1971, and after service in the United States Army graduated from the University of Virginia Law School in 1977.

Miller served as governor of the state of Nevada from 1989 until 1999. Born in Chicago, he attended the University of Santa Clara and received his law degree from Loyola Law School in 1971.

The Coalition for Innovative Transportation Solutions represents companies involved in innovative transportation projects around the country. The Coalition advocates creating incentives to encourage states to utilize innovative financing methods combined with innovative contracting to deliver higher quality transportation projects faster and at a lower cost to taxpayers.