Gov Cuomo Infrastructure Fund, U.S. Senators Best Practices, and an American Infrastructure Bank

Governor Andrew Cuomo recently issued this press release describing his own bipartisan plan with Senate Majority Leader Dean Skelos and Assembly Speaker Sheldon Silver to create a multi-sector New York Works Infrastructure Fund.

Governor Cuomo's plan is the most ambitious proposal at the state level to create a NEW multi-sector infrastructure bank. It is benchmarked on national and international best practices.

At NYU, we've been doing public education and technical assistance on the New York Infrastructure Fund over the last year and a half. We have held a number of meetings, often bringing together pension fund managers and other investors, construction firms, and public officials. I advise members of the NY State Senate and Assembly, the NY Empire State Development Corporation, U.S. Congressman Israel, Manhattan Borough President Stringer, as well as pension funds on Governor Cuomo's multi-sector investment facility.

A main focus for us has been on how to leverage this type of infrastructure fund to promote manufacturing within NY, especially upstate.

The New York Infrastructure Fund shares a number of features with the American Infrastructure Bank proposed by Senators Kerry, Hutchison, Graham and Warner -- endorsed by President Obama in his State of the Union Address and also by President Clinton in his
newly published book:

1. Accelerates targeted investment in key infrastructure sectors;
2. Adopts a bipartisan approach. Recently, U.S. Senator Kay Bailey Hutchison (R-TX) spoke of the importance of bipartisanship for infrastructure banks;
3. Leverages pension fund and other institutional investor capital through public-private partnerships;
4. Benefits urban, suburban and rural areas by addressing genuine needs sitting across the state and within a range of sectors including bridges, dams, parks, water systems, and also energy retrofits on homes, farms, businesses and schools.

An American Infrastructure Bank can help states such as New York leverage more effectively across sectors. Sometimes money goes further if we turn grants into loans and loan guarantees for profit-making projects.

In the coming months, I will be sending around more on how best practices state-driven initiatives by U.S. Senator Jim DeMint and others can become more attractive to private investment through an American Infrastructure Bank partnership. States such as TN, SC, AL, OH, IL, CA and KY can make the most of a multi-sector federal infrastructure bank in the near term.

This blog follows up on the recent news from California where Governor Jerry Brown signed AB29, creating the Governor's Office of Business and Economic Development (GO-Biz) to promote partnership-driven job creation and economic growth. GO-Biz brings together the California Infrastructure and Economic Development Bank, The Small Business Loan Guarantee Program, The Employment Panel, The California Workforce Investment Board, The Employment Development Department, The Tourism Commission, and the Film Commission.

With the creation of GO-Biz, Governor Brown shows us the value of multi-sector Infrastructure Banks in serving economic growth as members of a tight directed economic team.

An American Infrastructure Bank will be a key member of state economic teams looking to make money go further and be better spent.

 

 

 

Comments

[demisfine]

01:53 PM on 12/09/2011

Based on the amount of traffic and human bodies carried on NY trains, roads and bridges, this should be implemented ASAP.
When I see stories of the failures pssible on bridges like the Tappan Zee, Geo Washington, Whitestone and Throg's Neck, I get sick to my stomach.
One Minnesota moment away from catastrophe.