Infrastructure Finance: Does Your State Encourage Innovation?
Washington, D.C. — October 4, 2005 - Not all states are equal when it comes to encouraging the use of innovative infrastructure finance alternatives, according to a new study by researchers at the National Conference of State Legislatures. The study, which looks at state enabling authority for 12 infrastructure financing tools, is the focus of a new publication from the National Association of Home Builders (NAHB), “Infrastructure Finance: Does your state encourage innovation?”
“It is becoming increasingly difficult for local governments to finance much needed infrastructure,” said David Pressly, NAHB’s president-elect and a builder from Statesville, N.C. “This new publication will help local officials determine the financing options that are available in their states.”
NCSL looked at state authorization of 12 key infrastructure financing tools:
- Community Development Districts
- Certificates of Participation
- Design-Build
- Electronic Road Pricing
- GARVEE Bonds
- Partnership Schools
- State Infrastructure Banks
- Small-Scale Water and Wastewater Systems
- Special Districts
- State Revolving Loan Funds
- Tax-Exempt Municipal Lease Financing
- Tax Increment Financing
Click here to see which of these tools are specifically authorized for use in your state.
“Infrastructure Finance” is Part Two in a series about innovative infrastructure tools and bridges two significant pieces of research. The main body of NCSL’s research – examples of existing statutes with citations and summary analysis – can be found online.
Two years ago, NAHB published Part One of this series on infrastructure tools: “Building for Tomorrow: Innovative Infrastructure Solutions.” That 32-page report explains more than 20 infrastructure financing tools and delivery mechanisms and presents case studies on how those tools have been applied successfully. “Building for Tomorrow” can also be found at online.
“NAHB is working hard to help local government officials understand the range of tools that are available to finance and manage infrastructure in a cost-effective manner,” Pressly said. “Forward-thinking jurisdictions can use these alternative financing tools to better leverage community resources to meet current and future infrastructure needs.”
The NCSL study was funded by NAHB, the National Council of the Housing Industry (NCHI), National Association of REALTORS (NAR), the National Association of Industrial and Office Properties (NAIOP), the National Apartment Association (NAA) and the International Council of Shopping Centers (ICSC).
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