State and local governments finance more than 75 percent of all U.S. infrastructure projects, and while we are pleased to see that the proposal recognizes the importance of partnering with state and local governments, policymakers must ensure we have access to the funding mechanisms needed to execute this robust plan. As the House and Senate develop legislation, we urge lawmakers to expand the use of tax-exempt debt to ensure state and local governments can maximize their ability to support critically needed infrastructure enhancement. – Hon. Beth Pearce, Vermont State Treasurer and NAST President
Developed during NAST’s 2018 Legislative Conference in Washington D.C., state treasurers outlined the following three principles to guide federal policymakers as they consider infrastructure legislation:
- Clear Need: State treasurers agree that America’s aging infrastructure requires significant upgrades, which will require substantial investments from a variety of sources in order to meet the needs.
- State & Local Input: State and local governments fund more than three-quarters of the nation’s infrastructure, which includes bridges, roads, hospitals, schools, and water management projects. Therefore, state and local officials understand the financial tools needed to implement a robust infrastructure plan and they must be involved in the decision-making process surrounding infrastructure spending.
- Smart Solutions: To ensure state and local governments are equipped with the financial tools needed to implement a major infrastructure plan, Congress must support tax-exempt financing. This includes maximizing the use of tax-exempt municipal bonds, private activity bonds, and reinstating access to tax-exempt advance refunding bonds.
NAST continues to pursue these principles through education and advocacy throughout the year. Below are resources and media articles highlighting the journey.
NAST HQLA Letter to Congressional Leadership (3.22.18)
NAST Infrastructure Letter to Congress (2.21.18)
State Treasurers Outline Infrastructure Principles in Response to President Trump’s $1.5 Trillion Proposal (2.13.18)
NAST Infrastructure Letter to White House (1.23.18)
Resolution: Guiding Principles For A Prosperous Path Forward With New National Infrastructure Investment (Approved 9.18.17)
Resolution: Preserving and Enhancing the Tax Exempt Status of Municipal Bonds (Approved 9.18.17)
Resolution: Municipal Securities in regards to HQLA Designations (Approved 9.12.16)
Bloomberg: State Treasurers Seeking Preferred Status for Municipal Bonds (3.28.18)
BondBuyer*: NAST Pushes for HQLA Legislation (3.28.18)
RouteFifty: State Treasurers Want Advance Refunding Tax Exemption Restored (2.22.18)
The Hill: State treasurers call for restoring tax exemption to help fund infrastructure (2.22.18)
Bloomberg*: State Treasurers Want Congress to Revive Advanced Refundings (2.13.18)
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