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Economy

Gov. Christie Vastly Exaggerated Costs To Justify Scuttling Important Infrastructure Project

In late 2010, New Jersey Gov. Chris Christie (R) scuttled a proposed tunnel beneath the Hudson River, saying that the desperately needed infrastructure project would be too expensive for New Jersey. “It’s a dollars and cents issue,” Christie said at the time, claiming that New Jersey would have to pay a disproportionate amount of the project’s costs.

However, a new report from the Government Accountability Office shows that Christie vastly exaggerated how much of the project would be paid for by New Jersey:

The report by the Government Accountability Office, to be released this week, found that while Mr. Christie said that state transportation officials had revised cost estimates for the tunnel to at least $11 billion and potentially more than $14 billion, the range of estimates had in fact remained unchanged in the two years before he announced in 2010 that he was shutting down the project. And state transportation officials, the report says, had said the cost would be no more than $10 billion.

Mr. Christie also misstated New Jersey’s share of the costs: he said the state would pay 70 percent of the project; the report found that New Jersey was paying 14.4 percent. And while the governor said that an agreement with the federal government would require the state to pay all cost overruns, the report found that there was no final agreement, and that the federal government had made several offers to share those costs.

After canceling the project, Christie steered money earmarked for the tunnel into the Garden State’s transportation trust fund, rather than fixing the fund’s obviously broken revenue stream (which might have included raising the gasoline tax). “[The tunnel] was critical to the future of New Jersey’s economy and it took years to plan, but Gov. Christie wiped it out with a campaign of public deception,” said Sen. Frank Lautenberg (D-NJ) in a statement. “The future of New Jersey’s commuters was sacrificed for the short term political needs of the Governor.”

At the moment, both Amtrak and New Jersey transit trains share a pair of 100 year old tracks under the Hudson River, which are operating at capacity. Demand for mass transit between New York and New Jersey is expected to increase by nearly 40 percent by 2030. But instead of financing this important project, Christie used it for his political advantage, and then turned around to throw money at a boondoggle of a mall project.

Economy

Mitch McConnell Votes Against Highway Bill He Said He’d Work To Pass

Sen. Mitch McConnell (R-KY)

Sen. Mitch McConnell (R-KY)

In early March, the Laborers’ International Union of America launched a radio and mail ad campaign aimed at prodding Senate Minority Leader Mitch McConnell (R-KY) and Speaker of the House John Boehner (R-OH) to pass the Moving Ahead for Progress in the 21st Century Act, a highway and transportation bill.

Their ads, focused on Kentucky and Ohio, included children singing “America’s bridges falling down, all around the country,” to the tune of the song “London Bridge is Falling Down.” A narrator warned:

The average age of a U.S. bridge is 45 years, dangerously close to the life span of 50 years. More than a quarter of our bridges are structurally deficient or functionally obsolete. Because of tight budgets, bridge maintenance is in jeopardy. and if Republican leaders in Congress have their way those budgets will get cut even more. Text “Bridge” to 69866 and let Senate Minority Leader Mitch McConnell know we need a real highway bill to save our bridges and our lives.

This got the attention of McConnell’s staff, who posted a refutation on his campaign website. McConnell professed his support for the highway bill and slammed Laborers for its support of Democratic candidates and the “radical” Occupy movement.

“Contrary to the assertion in the ads,” McConnell’s staff claimed, “Senator McConnell has been working to pass the highway bill in the U.S. Senate, which is currently slated for a vote on final passage next week.” A McConnell spokesman also told a Louisville, Kentucky radio station that the minority leader was working with Senate Majority Leader Harry Reid (D-NV) to pass the highway bill.

Just before the vote, McConnell took to the senate floor and praised the lead sponsors, Sens. Barbara Boxer (D-CA) and Jim Inhofe (R-OK) for their bipartisan effort. “They have worked together in a collegial way to bring us to this point on the highway bill,” he raved.

Moments later, McConnell joined 21 other Republicans — and no Democrats — in voting against the bill. The House is expected to take up a similar version in April, rather than the far inferior House Republican version.

McConnell’s office did not respond to a request for comment on why he voted against a bill he’d pledged to support and no explanations were apparent on his senate or campaign websites. But it would certainly appear that the Republican leader owes the Laborers an apology.

Climate Progress

Putting Big Oil Subsidies to Work for America

How we can use tax breaks to help rebuild our infrastructure

by Donna Cooper, Richard W. Caperton, Kate Gordon , Daniel J. Weiss

Last year was a bonanza for the top five oil companies—BP plc, Chevron Corp., ConocoPhillips, ExxonMobil Corp., and Royal Dutch Shell Group—posting combined net-income earnings of $137 billion, a new record. Undeterred, Republican leaders in Congress are seeking to pass transportation legislation that will expand oil and natural gas drilling and will force the construction of the controversial Keystone XL pipeline project. House Republicans hope the Senate will concur and give these companies access for oil and gas production to some of our natural crown jewels.

Republicans in the House want to boost drilling offshore and on protected lands so that the federal revenues gained by this expansion of drilling can be used to pay for the American Energy and Infrastructure Jobs Act—the House Republican five-year highway funding bill.

The Center for American Progress has a better idea: Tap the geyser of oil company earnings by imposing a tax on imported oil and ending antiquated federal subsidies for oil companies. Doing this will pay for an environmentally and fiscally sound plan to upgrade our crumbling transportation, water, and energy infrastructure.

CAP’s new report, “Meeting the Infrastructure Imperative,” recommends doing just that, among other things, to put more federal funds and state, local, and private money to work investing in infrastructure over the next 10 years. Our report details why $129 billion more per year is needed to meet our country’s infrastructure capital repair and improvement needs. CAP found that direct federal spending for infrastructure would need to rise by $48 billion a year, or about a 1.3 percent increase in total federal spending. Boosting federal spending by $48 billion would mean an increase approximately the same size as what was spent on the Iraq war in fiscal year 2011.

CAP projects that with this level of increased federal investment, as much as $60 billion in private infrastructure investment and $11 billion in new state and local investment could be mobilized as well. But where will the new federal money come from?

Read more

Economy

House And Senate Infrastructure Bills Both Fall Woefully Short Of Meeting The Country’s Needs

House Republicans today plan to unveil a new transportation bill that would spend about $50 billion per year, setting the House GOP at odds with the Senate, which passed a bipartisan bill out of committee last year that would dedicate about $54 billion annually to transportation. The bills also have some significant policy differences — and Deron Lovaas, Federal Transportation Policy Director at the Natural Resources Defense Council, called the GOP’s bill a “march of horribles” for the environment and public transit — and according to many experts, neither piece of legislation comes close to meeting the critical infrastructure needs of the nation:

Neither bill comes close to the $262 billion a year that a panel of 80 transportation experts said the nation should spend to rebuild roads, bridges, water lines, sewage systems and dams that are reaching the end of their planned life cycles…The gap between what experts and most members of Congress would like to spend and what’s included in the two bills exists because the Highway Trust Fund no longer takes in enough gas tax revenues to sustain surface transportation needs.

“Clearly this level of funding is inadequate to support our needs as a nation,” said Joshua Schank, president of the Eno Center for Transportation. According to the American Society of Civil Engineers, the shoddy state of America’s surface transportation infrastructure will actually cost the U.S. economy more than $3 trillion in lost gross domestic product over the next decade. The ASCE found that “if the nation’s infrastructure were free of deficient conditions in pavement, bridges, transit vehicles, and track and transit facilities, Americans would earn more personal income and industry would be more productive.”

Not only do House Republicans want to pass a bill woefully underfunding the nation’s infrastructure, they also want to attach approval of the controversial Keystone XL pipeline to the legislation, preferring political theater to actually addressing one of the country’s most urgent needs.

Economy

House Republicans: No Infrastructure Funding Without Drill, Baby, Drill

Senate Republicans yesterday, with the help of Sens. Ben Nelson (D-NE) and Joe Lieberman (I-CT), blocked the latest piece of President Obama’s jobs act, which would have provided for $60 billion in infrastructure spending. Instead, the Senate GOP submitted a bill that would supposedly create jobs by crippling the government’s ability to regulate.

House Republicans, of course, won’t even bring up Obama’s jobs plan, instead deciding that the best way to address America’s crumbling infrastructure is to let loose with “drill, baby, drill“:

House Republicans plan to pass a bill by year’s end that would tie new infrastructure funding to federal revenue generated from an expansion of domestic energy production, Speaker John Boehner (R-Ohio) announced Thursday.

Dubbing it the “opposite of stimulus,” Boehner said the new energy production plan would provide “a new devoted revenue stream” that could pay for the kind of infrastructure spending that President Obama is demanding as part of his jobs package.

Even with the unemployment rate barely creeping down and the U.S. facing a $2 trillion deficit in terms of infrastructure, the GOP refuses to move forward with funding unless it is also allowed to soil the environment through more oil drilling.

And its not as if Boehner’s own state of Ohio couldn’t use some help when it comes to infrastructure. In fact, 27 percent of the bridges in Boehner’s state are either “structurally deficient or functionally obsolete.” Ohio’s share of the national highway system has 171 bridges that are structurally deficient. 10 of those bridges are even located in Boehner’s own district.

Boehner this week tried to claim that “nobody” has crafted a bill that would fund infrastructure projects, even as Senate Democrats were bringing a bill to the floor that would pay for those projects with a miniscule surtax on the very wealthiest Americans. Instead, Boehner and the rest of the House GOP want to hold the nation’s infrastructure hostage to their Big Oil agenda.

Economy

Boehner Claims ‘Nobody’ Wants To Pay For Infrastructure, As Democrats Plan Vote On Paid-For Infrastructure Bill

Earlier this week, Speaker of the House John Boehner (R-OH) told a Kentucky audience that, in his view, “everybody believes” that the country should be doing more to upgrade its aging, crumbling infrastructure. The problem, he said, is that “nobody wants to pay for it”:

“Everybody believes we have infrastructure deficiencies and more needs to be spent to repair, replace and in some cases build new infrastructure,” Boehner said in a speech. “The problem is nobody wants to pay for it.”

Boehner did not specifically mention the region’s bridge problems, but spoke broadly about transportation needs in his speech as part of the McConnell Center’s fall lecture series at the university.

However, it’s simply not true that “nobody” has tried to craft a bill that both invests in infrastructure and is paid for. President Obama’s American Jobs Act included money for infrastructure and was paid for by higher income taxes for the wealthiest Americans. Senate Democrats, meanwhile, plan to hold a vote this week on a bill that combines $50 billion in direct infrastructure spending with another $10 billion to start a national infrastructure bank.

The Senate Democrats’ bill is paid for by a surtax on the very wealthiest Americans that, as Citizens for Tax Justice has found, will affect no more than 0.1 percent of the residents of most states. Far from jumping on board with this plan, Senate Republicans are gearing up to derail it:

A senior Senate Democratic aide predicted Tuesday that not a single Republican would vote for the latest jobs package of $50 billion in infrastructure spending combined with a $10 billion national infrastructure bank.

Senate Democratic leaders hope to vote Thursday on the jobs bill, but they expect the outcome to follow the same lines as the previous two jobs measures Republicans voted unanimously to block.

As the Washington Post’s Greg Sargent noted yesterday, “a number of GOP Senators in the past have explicitly endorsed infrastructure spending — in different contexts — as a good way to spur economic growth or maintain economic competitiveness.” For instance, Senator Lindsey Graham (R-SC) has said that “if you’re a Republican and you want to create jobs, then you need to invest in infrastructure that will allow us to create jobs.” But now that Obama is proposing just that, the GOP is lining up against him.

Boehner is trying to deflect attention from the GOP’s constant obstruction of infrastructure bills. But tomorrow will provide the perfect test case as to whether “everybody” agrees that infrastructure is a priority, or whether the GOP thinks it’s more important to protect super-low tax rates for the very wealthy.

Climate Progress

Obama Offers GOP Leaders A Choice: Keep Oil Subsidies Or Rebuild America

“Mr. Boehner, Mr. McConnell, help us rebuild this bridge,” President Barack Obama declared today in front of the Brent Spence Bridge, which connects Cincinnati with the state of Kentucky. Obama’s challenge to Republican leaders Rep. John Boehner (R-OH) and Sen. Mitch McConnell (R-KY) to support legislation that would pay for the rebuilding of the outdated bridge echoed Reagan’s famous exhortation to Mikhail Gorbachev (“Mr. Gorbachev, tear down this wall!”).

In his fiery speech, Obama also challenged Republicans to choose their priorities:

Would you rather keep tax loopholes for oil companies? Or do you want construction workers to have a job rebuilding our bridges?

The Brent Space Bridge is both in deteriorating condition and incapable of handling the volume of traffic in the area. United Parcel Service trucks “avoid the bridge as much as possible,” going far out of their way to avoid the bridge’s gridlock. American infrastructure is in rapid decline, falling to 16th in the world behind other industrialized countries and emerging economies. The Urban Land Institute and Ernst and Young estimate that the United States has $2 trillion in needed infrastructure repairs.

Obama’s challenge referred to the fact that his $447 billion jobs bill is partly funded by closing $40 billion in oil company subsidies.

The president is offering an alternative to the debate that conservatives want Americans to have, such as the false choice between a healthy economy and a healthy environment.

Economy

Bachmann Tells Company That Depends On Infrastructure Projects She Opposed That Her Policies Will Help It Grow

Minnesota Rep. Michele Bachmann (R) toured the Waterloo, Iowa factory of OMJC Signals Inc. yesterday, where she told the workers that her policy plan for building job growth — lower taxes, less government spending, and fewer government regulations — would help companies like OMJC succeed and “grow, grow, grow, grow, grow” in ways they haven’t been able to under President Obama.

There was only one problem. OMJC builds and assembles traffic lights, and its business and profits depend on the types of government investments into roads, bridges, and infrastructure that have been consistently proposed by Obama and Democrats and consistently opposed by Bachmann and Republicans, as the Los Angeles Times reports:

Standing before a row of shiny orange trailers carrying portable solar-powered traffic lights, she said her plans for a smaller government with fewer rules and lower spending would help OMJC Signal Inc. “grow, grow, grow, grow, grow.”

That’s my goal — to see you succeed wildly,” the Minnesota congresswoman told a gathering of OMJC workers on the plant floor here in the central Iowa town where she grew up.

But OMJC thrives on the kind of road and bridge spending that Obama has promoted as a key remedy to the nation’s economic slowdown. As much as 80% of OMJC’s revenue comes from government, according to the company’s chief executive, Arlen Yost.

OMJC’s owner told the Times that business has remained stable throughout the recession as the government has maintained investments in infrastructure projects in an attempt to spur the economy. But while Bachmann claims she wants to help OMJC “grow, grow, grow, grow, grow,” her voting record tells a different story. Before Bachmann voted against the American Recovery and Reinvestment Act, she and her Republican colleagues worked to reduce the amount of infrastructure spending contained in the package. Bachmann and the GOP opposed a Democratic infrastructure spending plan in 2010. And of Obama’s recent jobs plan, Bachmann said it was full of “temporary gimmicks” and that Congress shouldn’t pass it.

Not only would Bachmann’s policies hurt the business she claimed she wanted to help, they continue to hurt the nation she wants to lead. As ThinkProgress has reported, more than a quarter of America’s bridges are rated structurally deficient or functionally obsolete. In Minnesota, 13 percent of bridges are deficient or obsolete, and nearly a third of the state’s roads are considered poor or mediocre. In Iowa, Bachmann’s birthplace and center of her presidential campaign, 27 percent of the bridges are rated deficient or obsolete, and more than 40 percent of its roads are poor or mediocre. According to recent studies, the U.S. needs as much as $2 trillion just to bring its infrastructure up to date.

Climate Progress

The Audi A6: Pay-To-Play Pothole Mitigation

Our guest blogger is A. Siegel, from Get Energy Smart Now.

Audi, in marketing a car that only the top few percent of Americans can afford, has focused on the mediocre situation of the nation’s infrastructure in a new ad campaign:

The road is not exactly a place of intelligence. Highway maintenance is underfunded, costing drivers 67 billion a year, and countless tires. Which drivers never check, because they’re busy checking email. This is why we engineered a car that makes 2000 decisions every second.

Watch it:

As Audi put it in their press release on the new campaign:

The ads will call attention to jarring facts about today’s driver, as well as the obstacles presented by today’s American road. More importantly, the ads showcase the ability of the Audi A6 to help overcome these obstacles while enhancing driver safety and enjoyment.

Shockingly, 38 million drivers on the road today would not pass their state’s driver’s exam, and across the nation, drivers encounter over 100,000 miles of crumbling highways and bridges.

Is Audi speaking to the portion of America who is enamored with gated communities, ready to pay for their own comfort and security but uncomfortable with (hating the concept of) paying their fair share for the common good?

Places like Haiti take this to an extreme. Living within one’s walls, with guards, life might be fantastic with perfectly paved streets and 24/7 electricity. Cross the wall and the children might be without clothing and the potholes could absorb a normal car — there you don’t need Audis but Range Rovers. Are those Audi is targeting this advertisement at aiming for an American future resembling Haiti?

Audi is, clearly, aiming for “buzz” about how their cars handle traffic and disrupted roads better than their competitors. They may — or may not — be right. The question for all of us is whether the best solution to our common problems derives from the wealthiest few spending dollars to ease their own lives or whether we all give of our means to make all of our lives better and the overall society stronger. Rather than investing $10,000s more in a car that can handle potholed roads, perhaps it would be better for those who have the ability to do so to consider paying a few $1,000s to help build up and maintain the crumbling infrastructure?

Economy

After Claiming To Support Infrastructure Investments, House GOP Blocks Infrastructure Investment Plan

Despite their recent exclamations of support for improving American infrastructure, House Republicans circulated a memo this weekend informing members that the caucus would oppose the majority of President Obama’s jobs plan, particularly the proposed infrastructure bank that would make large investments into the nation’s crumbling roads, bridges, and other forms of infrastructure.

In the memo, House Speaker John Boehner (R-OH) laid out opposition to Obama’s proposed $30 billion to keep teachers and law enforcement officers in their jobs, rejected money for school construction, and again claimed Republicans supported spending on infrastructure. But Boehner wrote that the GOP opposed the way Obama’s plan would make those investments, as Republicans continue to base their opposition to new stimulus plans on the misguided, false belief that the American Recovery and Reinvestment Act didn’t work, as The Hill reported:

Rather than adding more money to a broken system,” Boehner and his deputies wrote, “Congress and the president should spend the next few months working out a multi-year transportation authorization bill that fixes these problems.”

Despite those claims, there is little evidence that Republicans actually support spending the money necessary to bring the nation’s infrastructure up to date. In fact, this is the third major infrastructure investment plan Republicans have opposed since Obama took office in 2009, after it lobbied to reduce the amount of infrastructure-centered spending in the Recovery Act and derailed Democrats’ infrastructure spending plan in 2010.

As ThinkProgress reported last week, roads and bridges in the states and districts represented by GOP leadership are rated “structurally deficient” or “fundamentally obsolete” at rates that outpace the national average. Even knowing that, Republicans continue to make their priorities clear when it comes to creating jobs by fixing America’s infrastructure, as they have again chosen to do nothing while millions of American workers remain unemployed and ready to work on the roads and bridges that are crumbling around them.

Take action and tell Congress it’s time to rebuild America.

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