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1 EDUCATIONAL FUND

2 Building America s Future Overview Building America's Future (BAF) is a bipartisan and national coalition of elected officials dedicated to bringing about a new era of U.S. investment in infrastructure that enhances our nation's prosperity and quality of life. Founded in January 2008 by Governor Edward Rendell of Pennsylvania, Governor Arnold Schwarzenegger of California, and Mayor Michael Bloomberg of New York, BAF boasts a politically and regionally diverse membership of state and local elected officials from across the nation. BAF seeks to advance a new national vision for infrastructure investment that strengthens our cities and rural communities, and focuses on economic growth and global competitiveness, creation of economic opportunity for all Americans, and environmental sustainability. In addition, BAF embraces a wide definition of infrastructure - from roads and bridges to water and sewer systems, energy systems, buses, trains, ports, airports, levees, dams, schools and housing. BAF s Goals: Mobilize a coalition of elected officials and like- minded organizations to advocate for increasing our nation's infrastructure investments and reforming national infrastructure policy. Advocate an infrastructure policy that is focused on shared prosperity that reaches all Americans, revitalizes our metropolitan centers, and boosts our nation's economic competitiveness. Advocate a new era of strategic planning, economic analysis, accountability and rigorous performance standards for U.S. infrastructure investment Advocate infrastructure policy that is forward- thinking and comprehensive in scope, yet grounded in the need for environmental sustainability, lower carbon emissions, and reduced U.S. dependence on foreign oil. Building America's Future works closely with associations that represent the nation's top officials, including the National Governors Association, the U.S. Conference of Mayors, the National League of Cities, the National Association of County Officials, the National Conference of State Legislators, and the Council of State Governments and with other non- profit groups such as the Brookings Metropolitan Policy Center, Regional Plan Association, OneRail, Transportation 4 America, U.S. Chamber of Commerce and the National Association of Manufacturers. The Rockefeller Foundation and its President, Judith Rodin, have generously committed to provide a grant to BAF to help ensure that the organization can carry out its vital mission. Page 2 of 7

3 Building America s Future Our Co- Chair s Mayor Michael R. Bloomberg Michael R. Bloomberg is the 108th Mayor of the City of New York. Elected to office in 2001, in his first term, Mayor Bloomberg cut crime; created jobs; unleashed a boom of affordable housing; implemented ambitious public health strategies, including the successful ban on smoking in restaurants and bars; gained control of the nation s largest school district; and improved the efficiency of government. In 2005, he was re- elected by a diverse coalition of support. In his second term, while balancing the budget and driving unemployment to a record low, Mayor Bloomberg has taken on a number of new challenges. He launched an innovative program to combat poverty. He s undertaken a far- reaching campaign to fight global warming. And as co- founder of a bipartisan coalition of more than 200 mayors from every region of the country, he is working to keep illegal guns out of the hands of criminals and off city streets. Michael Bloomberg began a small start- up company called Bloomberg LP in Today, Bloomberg LP has over 250,000 subscribers to its financial news and information service. Governor Edward G. Rendell Edward G. Rendell, Pennsylvania s 45th Governor, began a second term of office on January 16, 2007, following a landslide re- election victory. As Governor, Rendell serves as chief executive of the nation s 6th- most- populous state and oversees a $27.5 billion budget. Governor Rendell s unprecedented strategic investments have energized Pennsylvania s economy, revitalized communities, improved education, protected the environment and expanded access to health care to all children and affordable prescription drugs for older adults. Rendell served as the Chairman of the National Governor's Association from , and in 2000, Governor Rendell served as General Chair of the Democratic National Committee during the Presidential election. From 1992 through 1999, Governor Rendell served as the 121st Mayor of the City of Philadelphia. Before serving as Mayor of Philadelphia, Rendell was elected district attorney of the City for two terms from 1978 through Governor Arnold Schwarzenegger Arnold Schwarzenegger, the Austrian- born immigrant, former Mr. Universe bodybuilder and movie star known around the world, gratefully serves the people of California as the state s 38th governor. He is serving his second term after being first elected in California s historic 2003 recall election. In his first term, Governor Schwarzenegger brought California back from the brink of bankruptcy, reinvigorated the economy, and created a better environment for business. In his second term he made California a world leader on renewable energy and combating climate change with the Global Warming Solutions Act of 2006, and became the first governor in decades to invest in rebuilding California s critical infrastructure with his Strategic Growth Plan. Governor Schwarzenegger has also dedicated himself to promoting physical education and after- school programs, as well as committing his time, energy and personal finances to charitable organizations around the world. Governor Schwarzenegger and his wife Maria Shriver have four children - Katherine, Christina, Patrick and Christopher. Page 3 of 7

4 National Infrastructure Bank The Highway Trust Fund is an effective tool for providing states and cities with basic funding to repair and, to some extent, complete major road and transit projects. As Congress considers the reauthorization of SAFETEA- LU, it must find a way to significantly increase its investment level to better meet the roughly $200 billion in annual transportation needs necessary to keep our nation competitive and grow our economy. In addition, the American Society for Civil Engineers has identified over $2.2 trillion in outstanding infrastructure needs that must be completed in order to improve the state- of- repair of our transportation, water and wastewater systems, levees, dams, airports, and other sectors. Beyond providing investment allocations for states and cities, transportation and infrastructure projects of regional and national significance should be undertaken within a new model that: Provides incentives to undertake multi- state efforts to address major transportation needs. Enables merit- based selection of projects so that the most critical and feasible projects proceed. Ensures federal assistance at a significant enough scale to make these major projects financially viable. Creates a method for private capital to be included in these projects so that federal/state/city dollars are maximized. In large measure due to BAF s efforts, the President proposed a National Infrastructure Bank to accomplish most, if not all, of these critical improvements. The Bank would have the authority to employ a range of finance and funding tools including: grants, credit assistance, low interest loans and tax incentives. In this way, the Bank would not just be another financing program, as project sponsors would be encouraged to identify new revenue streams to leverage costs, promote more efficient governance and spur further innovation. Ideally a National Infrastructure Bank (NIB) would not be limited to transportation projects but would also include the authority to support ports, rail (freight and passenger), drinking and waste water needs, electrical grid, broadband and school construction. The Bank could initially be funded through the General Fund of at least $25 billion with other potential sources of funding that could include: All or some of the interest that has been collected from repayments of TARP funding. Reallocation of unused ARRA funding. A percentage of revenue collected from a carbon cap and trade program. A six- year, reformed transportation bill. Private investments through financing mechanisms BAF does not have an official position on individual funding sources. Page 4 of 7

5 Put our money where our mouth is: Build better Arnold Schwarzenegger visits a Japanese high- speed bullet train. AP Photo By GOV. ARNOLD SCHWARZENEGGER & GOV. ED RENDELL & MAYOR MICHAEL BLOOMBERG (10/15/10) This week, the Treasury Department and Council of Economic Advisers released an important new analysis on the economic benefits of transportation infrastructure investment. The findings prove what we have long been advocating: Our nation s infrastructure has been neglected for far too long. But smart investment can yield job creation and long- term economic growth, and the public and business community is ready for action. Whenever we travel to other nations to promote U.S. industry and enterprise like Gov. Schwarzenegger s recent trip to Asia we see the tremendous progress being made overseas. We worry that our nation could fall behind the rest of the world if we don t start doing more to invest in our future. In Seoul, the skyline is full of cranes thanks to construction partnerships between the government and private sector. China, Japan and South Korea all have high- speed trains that efficiently transport people and goods, sometimes at more than 200 miles per hour. Yet here in America, we have nothing like that. We continue to rely on the antiquated infrastructure our parents generation built. We owe it to our children and our country to build infrastructure that could allow us to remain the world s economic superpower in the 21st century. Equally important, large infrastructure projects would put many Americans to work during this time of high unemployment. Page 5 of 7

6 President Barack Obama has outlined a promising plan to spend $50 billion on transportation improvements, which would allow us to construct and improve 150,000 miles of roads, 4,000 miles of railways and 150 miles of airport runways. The additional $50 billion would be a down payment on the broader six- year transportation bill, which Congress could consider next year, and which may cost upwards of $500 billion. The issue is not about increasing spending - it is about making tough choices that could maximize economic return, reduce spending on wasteful projects and strengthen U.S. economic competitiveness. Now, most infrastructure money is distributed through formulas with no incentives for results or performance and the rest of the money is spread through pork- barrel earmarks. The last transportation bill had more than 6,000 earmarks, costing more than $24 billion. While no state should be left starving, each should be forced to compete to earn its slice of the pie with more money for projects that yield the greatest economic return. Such an approach would require the federal government to set standards about how money should be allocated. Those standards should be built around solid national goals for our economy, environment and national security. In addition, there should be a system of carrots and sticks to ensure that projects are completed on time and on budget. When the Bush administration created a competitive grant process for $1 billion in transportation aid, and when the Obama administration created a competitive grant process for $4.3 billion in education aid, states reacted by adopting innovative and effective reforms. The lesson? Money talks and states and cities listen. By judging states infrastructure projects on how well they strengthen our economy and put people back to work, the federal government can start getting our country back on track. For example, Washington wants to double U.S. exports, yet our current transportation system is already overly congested, costing our country more than $200 billion a year in lost economic activity, wasted fuel consumption, cargo delays not to mention sheer frustration. But by investing the most money in fixing the worst bottlenecks - - transport costs can lower; commercial activity can quicken; private investment can rise; jobs can increase, and the economy will grow. The president is correct to connect investment to performance, with a proposal to create a National Infrastructure Bank. That bank could finance large projects based on national standards and goals, allowing Washington to increase investments in big projects that cut across state lines. Washington could also use standards and competition to ensure new transportation spending decreases carbon pollution. This can help shift money from outmoded technology to new transit choices that clean our air, reduce U.S. foreign- oil dependence and ensure we are building a 21st- century infrastructure. At a time when the acrimony in Washington is as bad as ever, infrastructure reform offers common ground for independents, Democrats and Republicans. We are all dedicated to fiscal responsibility, forward- thinking ideas and job creation. It s time to put our money where our mouth is. Arnold Schwarzenegger, Republican, is the governor of California. Ed Rendell (Democrat) is the governor of Pennsylvania. Michael Bloomberg, independent, is the mayor of New York. They are all the co- chairmen of Building America s Future. Page 6 of 7

7 For More Information Building America's Future 1301 Pennsylvania Avenue, NW Suite 350 Washington, DC Marcia Hale President Kerry O Hare Vice President for Policy kerry@bafuture.org Sean O Shea Vice President and Counsel sean@bafuture.org Bill Keyrouze Special Assistant bill@bafuture.org Laura Braden Press Secretary lbraden@mercuryllc.com Facebook: or by searching Building America s Future YouTube: Twitter: Page 7 of 7

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