Monday, May 7, 2012

More on Infrastructure Banks Don’t Generate Revenue

A recent GAO report (Transportation: Key Issues andManagement Challenges, March 29, 2012) makes the same point I have been making about infrastructure banks (and similar mechanisms) and revenue.  After a brief summary of proposals for a national infrastructure bank, more TIFIA, etc., they note:
“While these tools have promise to help meet increasing transportation demands, they are forms of debt that must be repaid, not new revenues.  New revenues for transportation infrastructure investments can come only from two sources: new taxes or new fees. Ultimately, raising new revenues or reducing transportation spending or both will be needed.”
Thank you GAO!