The North Carolina Chamber is urging Raleigh lawmakers to consider creating a State Infrastructure Bank and adopting other “innovative financing solutions to leverage private money’’ to advance infrastructure projects in the state.
While spending on state highways is a focus, the Raleigh-based business advocacy organization is also urging legislators to embrace long-term solutions to repair infrastructure damaged by hurricanes. This past September, Helene proved devastating to roads, water, sewer and other systems across western North Carolina.
Even now, the shutdown of portions of Interstates 40 and 26 is “causing traffic chaos, and that impacts commerce and the ability to get the economy back up and running,’’ said Jake Cashion, the Chamber’s vice president of government affairs. “Unfortunately, Helene highlighted the demands on the non-transportation infrastructure, as well. It’s amazing the shock that the hurricane put on the infrastructure system in general.’’ (One lane of traffic in each direction on I-40 near the Tennessee state will re-open Saturday, March 1; Traffic is passing on all sections of I-26).
Helene’s lingering impact serves as a background to the convening of the General Assembly. Led by the Chamber, the business community is backing nine recommendations for accelerating and broadening infrastructure development in transportation, energy, water and broadband.
The legislative agenda also lists education and talent development, the state’s business climate and legal reform as top priorities for state businesses.
The Chamber’s advocacy for “a modernized transportation funding structure’’ builds upon the growing concern among state leaders over North Carolina’s reliance on motor fuels taxes for more than half of transportation revenue.
“Surging costs from historic storms, revenue shortfalls, widespread project delays, and the COVID-19 pandemic have all contributed to our state’s transportation challenges,’’ the Chamber said in an earlier infrastructure report. “Even more alarming, however, are the objective studies showing that North Carolina depends far too heavily on the motor fuels tax’’ as the growing adoption of electric vehicles makes the state’s reliance upon the motor fuels tax “less and less viable.’’
The idea of creating a State Infrastructure Bank isn’t new to lawmakers. A House bill introduced in April 2023, but not enacted, would have authorized the creation of a joint legislative commission to study the feasibility of establishing the bank.
The commission would examine how the bank “could strengthen economic and community development, provide financial resources for infrastructure projects, and leverage state, federal, and private resources to address the need for access to sustainable financial assistance for projects that will contribute to economic growth, job creation, and support of local communities in the state,’’ according to the legislation.
The Chamber is also evaluating the merits of an infrastructure bank, according to Cashion. He cited the state’s growing population and economic development as reasons for lawmakers to evaluate “diversifying our funding streams.’’
“The demands on the (transportation) network are only increasing and we’ve got to have a future focus on that,’’ he said. “That’s why we think that we need to continue to take a look at tools such as the state infrastructure bank.’’
Enacted into law almost 12 years ago, South Carolina’s Transportation Infrastructure Bank helps “select and assist in financing major qualified projects by providing loans and other financial assistance…for constructing and improving highway and transportation facilities necessary for public purposes including economic development,’’ according to the bank’s website. Its focus on “larger transportation projects…allows SCDOT to devote resources to other important transportation projects.’’
“Infrastructure banks can be leveraged by public and private funding to increase capital for projects,’’ Cashion said. Funds are available from the federal and state governments, possibly from tapping the general and transportation budgets, he said. Issuing bonds is another option.
“There are companies around the world that help fund private-public partnerships,’’ Cashion said. “That’s an example of using private dollars to fund public infrastructure, with a payback.’’