My bill would enable public and private investors to invest in the building of schools, roads and airports here at home. These bonds, called Public Benefit Bonds, would be attractive investments for pension funds because the bonds enable them to pass on tax benefits to their pensioners. These bonds would be revenue neutral, and studies show that they are actually likely to be revenue positive. Under my bill, every dollar in federal investment will result in ten dollars of construction. If we invest a billion federal dollars it will create 250,000 to 500,000 new jobs.
Businesses depend on airports, roads, wastewater treatment facilities, and clean-water projects.
Stronger infrastructure will aid economic expansion. I am pleased that the Clinton Administration, through the U.S. Department of Transportation, has seen merit in innovative financing mechanisms, and I look forward to learning more about their proposals to advance these new tools. I am an ardent supporter of these state banks, which carry out functions similar to the National Infrastructure Corporation, but on a much smaller scale. However, unlike the national corporation which reduces the risk of investing in infrastructure, the primary function of the SIBs is to reduce the cost of these investments. I believe the SIBs have the potential to achieve many of the same results as a national financing corporation.