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State Infrastructure Bank asks for $1.3 million to cover Act 37 shortfall
Summary
Charles Cannon, COO of the State Infrastructure Bank, told the subcommittee the bank needs $1.3 million nonrecurring to make up a deficit created by Act 37’s change to vehicle registration fee frequency. He described the bank’s mission, recent activity, and a request for staff and lease funding.
Charles Cannon, chief operating officer of the State Infrastructure Bank, told the Senate Finance Committee’s Transportation Regulatory Subcommittee that the bank is asking for $1.3 million in nonrecurring funds to “make us whole” after a revenue shortfall caused by Act 37 (2021) and related registration-fee changes.
Cannon said the Infrastructure Bank serves as a financing catalyst for local transportation projects and reported the bank has provided about $7.1 billion in financial assistance since 1997. He told the committee the bank currently has roughly 16 active projects with about $2 billion in total project value and described a recent bond refunding that generated about $10 million and produced a credit-rating upgrade to AA-minus.
The request: Cannon said the registration-fee change under Act 37 reduced the bank’s typical revenue stream, leaving a deficit that was partially addressed in previous budgets. "The main budget request was the Act 37, that $1,300,000, which is a nonrecurring. This is the last year we'll request for '26," he said. He also noted that last year $1.6 million of the shortfall was added in H2 and passed in the conference committee bill; the $1.3 million was included in the House budget this year.
Other items: The Infrastructure Bank also seeks additional personal-services funding for staff and funding for a new lease rate (the bank leases space from the Department of Transportation). Cannon emphasized ongoing partnerships with DOT and with the DMV on project work.
Questions and outcome: Committee members asked questions and did not take a vote at the hearing. Cannon closed by thanking committee members and noting the bank’s rural-application program and ongoing project portfolio.
