Sen. Talent hits road to promote federal transportation bonds

WASHINGTON -- Sen. Jim Talent is crisscrossing Missouri this week to promote a plan for fixing roads and other modes of travel by issuing up to $50 billion in transportation bonds.

Talent, R-Mo., is pushing "Build America Bonds" as a way to raise money for cash-strapped states and cities that would be separate from the multiyear federal highway bill that provides the bulk of states' transportation dollars.

The senator will be at the Cape Girardeau Chamber of Commerce at 10 a.m. today.

He and Democratic Sen. Ron Wyden of Oregon say the plan could spur economic growth, create millions of jobs and save lives by making safety improvements. Talent and Wyden introduced the road-building measure last week.

"It's really another way of saying I'm talking about jobs," Talent said in a telephone interview Tuesday between stops in St. Louis and Kansas City, Mo.

"I think a good infrastructure bill is a key aspect of getting the economy going. There's other things; energy, a tax package. But we need a strong infrastructure package."

He planned to visit Cape Girardeau, Springfield and Jefferson City on today and Hannibal, Kirksville and St. Joseph on Thursday.

Raising cash by selling bonds is commonly done to pay for major construction by privately owned businesses and even state governments, Talent said.

The bill calls for a government-chartered nonprofit organization to issue 30-year bonds for purchase by individuals and businesses. Some proceeds would go into a trust fund to be invested in federal agency bonds or other high-grade investments.

Bond holders would receive tax credits, rather than interest, that could be applied against their federal income tax liability. States or localities receiving the bonds would be required to provide matching funds.

The concept is one Talent has pushed for years. He campaigned on a similar idea for Missouri governor in 2000, a race he lost, and said during last year's Senate race he wanted to introduce bond financing for highways in Congress.

However, the proposal covers uncharted territory on Capitol Hill. Talent and Wyden have been talking with colleagues about the idea. No one has said 'no,' Talent said.

Pretty good reaction

"The reaction inside the Beltway has been pretty good, but I compare it to when a dog sees something totally new -- sometimes it ducks its head and stares for a while," Talent said.

"That's what Washington is doing, I think."

Wyden, appearing with Talent at a news conference on Thursday, said their proposal could be "an important shot in the arm to the U.S. economy without being a drain on federal or state budgets."

"By investing in Build America Bonds, Americans can put their money to work building and improving critical infrastructure like roads, bridges, rails and ports, while helping to create jobs."

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