President-elect Joe Biden’s transportation secretary pick has knowledge of and a fresh perspective on infrastructure needs, though he may be hampered by the lack of Congressional experience needed to command bipartisanship and he has no track record running a big organization.
Biden announced Tuesday he has picked former South Bend, Indiana Mayor and former presidential candidate Pete Buttigieg to lead the Department of Transportation. Sources say his experience as mayor from 2012 to January 2020 makes him uniquely positioned to know the importance of traditional infrastructure.
“A mayor, frankly, is uniquely situated to know how important the traditional means of infrastructure are — transportation when it comes to making a community viable and connecting it to the surroundings and the world — but also know in this new environment as we move to this fourth industrial revolution with a focus on 5G and all that we’ve learned during this COVID era,” said Rodney Slater, a former transportation secretary under the Clinton administration and a partner at Squire Patton Boggs.
The pandemic brings changes to telemedicine, telecommuting, virtual teaching, making broadband essential, Slater said.
“And how do you fund all of those things — the municipal bond community,” Slater said.”There, mayors are probably unique crafters and implementors of that kind of a strategy.”
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Sources agreed that Buttigieg has an understanding of the municipal market and Slater said Buttigieg will actively work with the Treasury and Office of Management and Budget among others, talking with mayors, governors and those from public and private sectors.
Buttigieg would still have to be confirmed by the U.S. Senate. When running for president this past year, he introduced a robust infrastructure plan that could translate into his new role as transportation secretary.
In his plan, he called for $160 billion for municipalities to increase public transit. He also wanted to triple funding for a low or no emission grant program and said he would direct the DOT to propose an alternative to the gas tax such as a fee for vehicle miles traveled. This is similar to Biden’s call for new revenues to the heavily depleted Highway Trust Fund, which is paid for mostly by gas taxes and his push for net-zero emissions.
In the role as DOT chief, Buttigieg would be tasked with advising on and implementing parts of Biden's "Build Back Better" infrastructure and economic stimulus plan.
Buttigieg tweeted late yesterday that he plans to build back better through modern and sustainable infrastructure.
“Innovation in transportation helped build my hometown, and it propels our country,” Buttigieg said.
Buttigieg will be good for state and local governments because of his background as mayor, said Dee Wisor, an attorney at Butler Snow Law Firm. His approach to infrastructure will be driven more from the local level and relying on local governments to establish budget priorities, Wisor added.
“I would imagine this would be a combination of federal funding and changes to tax code requirements to facilitate municipal bonds to under kick some of these municipal projects,” Wisor said. “We shall see whether he brings his presidential infrastructure plan with him that he is now secretary of transportation and has to report to the boss.”
Biden was also reportedly contemplating former Chicago Mayor and former Congressman Rahm Emmanuel and Los Angeles Mayor Eric Garcetti, drawing some criticism that Buttigieg does not have experience running a large organization like the Department of Transportation.
“I don’t mean to diminish what his job was as mayor, but the Department of Transportation is more like Los Angeles or Chicago than it is like South Bend,” Wisor said. “Hopefully, if I was in his shoes, I’d want to bring experienced staff along who maybe has more experience running a big organization like that because that will be a challenge.”
As for bringing muni provisions front and center in Congress, Wisor said someone with more experience in Congress may be better suited. He added that Biden and Vice President Kamala Harris could bring that bipartisan edge given their Congressional experience.
Former U.S. Transportation Secretary Slater said Biden is similar to former President Bill Clinton in that both want the “power of the office taken to the American people.”
“So having someone who understands that and who is willing to listen and again who understands that power is not marked by the number of people who served you, but the number of people you serve,” Slater said.
Buttigieg will also be able to effectively communicate ways to address climate change when it comes to infrastructure investment and municipal bonds, Slater said.
Buttigieg understands the value of muni bonds, Slater said.
“Selecting a mayor, you’re selecting someone that knows the importance of municipal bonding and the community and knows about the tremendous role that that has played in the financing of infrastructure for many many decades,” Slater said.
During his time as mayor, South Bend had dozens of bonds issued including general obligation bonds to bonds for park districts, lease rental, economic development among others.
Buttigieg has had national exposure so he should understand bipartisanship on the federal level, said Emily Brock, director of the Government Finance Officers Association's federal liaison center.
Buttigieg would also be the first LGBTQ Cabinet Secretary.
The American Association of State Highway and Transportation Officials congratulated Buttigieg on his nomination.
“As the former Mayor of South Bend, Indiana, Buttigieg understands the vital role that transportation plays in people’s lives,” said Jim Tymon, AASHTO’s executive director.
Speaker of the House Nancy Pelosi said Biden picked a leader to build back better.
“As a mayor, Buttigieg profoundly understands the transportation and infrastructure challenges that communities face, and as Secretary, will be an effective force for building the modern, resilient and sustainable infrastructure that the greatest country in the world, Pelosi said.
Slater’s advice to Buttigieg as a former transportation secretary:
“Even though there will be challenges, just enjoy every day.”
