[Congressional Record Volume 142, Number 81 (Wednesday, June 5, 1996)]
[Extensions of Remarks]
[Page E999]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             INFRASTRUCTURE

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                        Wednesday, June 5, 1996

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, May 29, 1996, into the Congressional Record.

                Infrastructure and Economic Development

       Renewed attention needs to be given to the state of our 
     country's infrastructure. Infrastructure is what physically 
     holds this country together. It is our roads, bridges, 
     airports, waterways, and water and sewer systems. The quality 
     of life of Hoosiers is affected by these things every day.
       Yet many of us take infrastructure for granted and need to 
     be reminded how important it is. It's not until something 
     goes wrong--such as hitting a pothole or having to boil 
     drinking water because of high bacteria levels--that we 
     realize how dependent we are on a high-quality 
     infrastructure. Communities and businesses depend on 
     infrastructure for basic services and for quick and easy 
     movement of goods and people. Sound infrastructure helps get 
     children to school and people to hospitals, allows us to 
     maintain personal contacts, and ensures more productive, 
     healthier lives.
       Across the country we can see a lot of problems with the 
     condition of our infrastructure. Many roads and bridges are 
     in poor repair. The quality of the drinking water in certain 
     parts of the country is deteriorating. Air traffic control 
     towers at some airports use computers so old that they still 
     have vacuum tubes. Clearly, something has to be done. We need 
     to make investment in our infrastructure a priority. Without 
     a sound infrastructure, the U.S. will find it increasingly 
     difficult to maintain our high standard of living and 
     competitive edge internationally.


                     importance to economic growth

       Economic development is not possible without a good 
     infrastructure. It helps businesses grow and expand and means 
     more jobs for Americans. I often hear from Hoosier business 
     leaders about how the widening of a local road or how 
     increased water capacity has helped their business.
       Studies have shown that failure to keep up our investment 
     in infrastructure has contributed to a slowing of U.S. 
     productivity increases since the early 1980s. Our global 
     competitiveness depends on the efficiency of our 
     infrastructure, especially transportation. In a country as 
     vast as ours, our ability to move goods and services to 
     market must be second to none.


                       infrastructure investment

       Currently 70% of the funds for infrastructure investment 
     come from local and state governments, with the federal 
     government responsible for 30%. The federal government 
     contributes to infrastructure repair and construction largely 
     through spending from aviation, highway, transit, and 
     waterway trust funds financed by user fees.
       Yet while everyone acknowledges the critical need for good 
     infrastructure, and while our needs continue to expand, 
     public investment in recent decades has fallen short. A 
     recent Department of Transportation report on the state of 
     America's infrastructure concluded that we currently have a 
     $17 billion annual shortfall in what we should be investing 
     just to keep our transportation system in good working order. 
     Total U.S. public spending on infrastructure has fallen from 
     3.1% of gross domestic product in 1960 to 2.1% in 1994. Of 
     the seven major industrialized nations, the U.S. ranks at the 
     bottom in the ratio of public investment to gross domestic 
     product.


                          congressional action

       Congress has recently considered several measures relating 
     to infrastructure policy and investment. Some of our actions 
     are positive, but others are not.
       Some of the highest profile infrastructure projects are 
     highways and bridges. These are projects we can point to and 
     see the direct impact on local economies. Congress approved a 
     major overhaul of our transportation policy with the passage 
     of the Intermodal Surface Transportation Efficiency Act 
     (ISTEA) in 1991. ISTEA is a six-year plan to reorient and 
     modernize our transportation systems. ISTEA marked the shift 
     in our policy focus from increasing transportation capacity 
     to improving efficiency through better planning, management, 
     and maintenance. Indiana and several others states are now 
     doing better in their share of highway trust funds, but they 
     still do not get back as much as they contribute. ISTEA is 
     due to be reauthorized next year and I am hopeful that 
     funding inequities will be addressed at that time.
       Congress is working on an important measure to free up the 
     $30 billion surplus in the transportation trust funds. Funds 
     available from the trust funds are capped each year because 
     of arcane federal budget rules. I supported the House bill to 
     take the transportation trust funds out of the federal 
     budget, thus freeing this money from federal budgetary 
     constraints.
       While not as glamorous as the larger infrastructure 
     projects, wastewater treatment plans and public water systems 
     are an important part of our infrastructure. The cost of 
     upgrading and constructing wastewater plants and drinking 
     systems is overwhelming for many rural communities. Congress 
     is taking steps to address this through changes in the Safe 
     Drinking Water Act and the Clean Water Act. One measure would 
     create a new fund (known as a state revolving fund) to help 
     local communities finance drinking water treatment 
     improvements. Another would reauthorize federal contributions 
     for wastewater treatment construction.
       Congress unwisely cut overall infrastructure funding for 
     1996, and is currently considering 1997 levels. Funding for 
     safe drinking water and wastewater treatment would be 
     maintained at current levels, but I am dismayed to see other 
     drastic cuts being proposed. The bill which funds 
     transportation programs would cut funding $2 billion below 
     the current level. The bill to fund waterway improvements was 
     also cut deeply. That may put in jeopardy the much-needed 
     improvements at McAlpine Locks and Dam on the Ohio River. 
     Without these improvements, barge traffic will continue to be 
     impeded, slowing the flow of goods into Indiana and the Ohio 
     Valley. Funding for local flood control projects also may be 
     threatened.
       These cuts are short-sighted and will serve to stunt the 
     economic growth in many areas of our country. While I am well 
     aware that Congress must rein in spending and reduce the 
     deficit, infrastructure funding is an investment--an 
     investment in our country's future. We should not waver in 
     our commitment to helping people live better, more productive 
     lives.


                               conclusion

       Investment in our infrastructure is vital to maintaining 
     the high quality of life Americans have come to expect. We 
     want good drinking water, sound roads and bridges, and safe, 
     efficient air travel, and we also want a growing economy and 
     more jobs. An excellent infrastructure, second to none, will 
     make our economy more competitive and our lives more 
     pleasant.

                          ____________________