Tom Warne Report, 22 March 2013
An Idaho House Committee rejected a bid to help developers pay for highway projects using bonds backed by Idaho sales taxes.
Thursday’s 9-6 rejection by the House Revenue and Taxation Committee came after lawmakers said they were wary of making Idaho taxpayers accountable for the debt, if promised tax revenue to accompany such projects to fund the bonds does not materialize.
Lobbyist Jeremy Pisca representing developer M3 with land along State Highway 16 in southwestern Idaho which could have benefited from the bid named “Transportation and Economic Development Zone.”
Pisca argued that strict regulations would protect the state from risky efforts, and at the same time freeing up funding for infrastructure projects that the state cannot afford to pay for right now.
Rep. Lenore Barrett of Challis called it a “fly now, pay later” government program that could backfire.
The public’s suspicion of government-backed investments for the private sector comes from recent examples such as Solyndra. The history of the government’s ability to pick winners and losers in the venture capital world isn’t stellar. TW