• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Government Officials, Practitioners and Academics Gathered Together at a Conference in Sacramento to Discuss California's Infrastructure Crisis

Posted on: Saturday, 8 March 2008, 00:00 CST

Leading academics and policy-makers gathered in Sacramento yesterday to discuss solutions to one of California's most pressing and controversial problems: how to meet infrastructure investment needs. The event, titled "Paying for Tomorrow's Infrastructure: Options and Strategies for Sustainable Financing," was hosted by The Keston Institute for Public Finance and Infrastructure Policy, which is based at the University of Southern California.

The conference consisted of four major sessions, and attracted interest from a wide spectrum of institutions and individuals, many of whom have a critical role in meeting this challenge.

"That over 100 government officials, practitioners, and academics devoted a full day to discussing infrastructure finance issues underscores the critical importance this issue plays with the people of California," said Richard G. Little, Director of the Keston Institute for Public Finance and Infrastructure Policy at the University of Southern California.

"There's a serious shortage of high-quality infrastructure services. The investment we're talking about is not necessarily about growth, this is about building the infrastructure we need now for the economy and population that we have today," said David Crane, Special Advisor for Jobs and Growth to Governor Schwarzenegger, who opened the conference with the morning keynote address. Crane emphasized the urgency and enormity of the problem California faces. He also discussed the wide variety of options for solving problems, stressing the need to develop beneficial partnerships with the private sector and to get the most of our every dollar spent.

California State Treasurer Bill Lockyer offered a contrasting perspective during the lunchtime keynote, calling for political leadership and public sector action to increase investment.

"Let's explore public/public partnerships as well. Let's figure out if there are ways to accelerate investment in these infrastructure needs by forging partnerships between state and local entities," said Lockyer, who also highlighted his current proposal to establish an accountable and flexible statewide transportation authority to work with local and regional agencies that would address the most critical needs. He also emphasized the potential of immediate and enormous savings that could be achieved by investing in improved energy efficient public buildings.

Other panelists included Martin Wachs, Director, Transportation, Space and Technology, RAND Corporation; David E. Dowall, Director, Institute of Urban and Regional Development, UC Berkeley; Ellen Hanak, Senior Fellow, Public Policy Institute of California; Eric J. Brunner, Department of Economic, Quinnipiac University; Asha Weinstein Agrawal, Mineta Transportation Institute, San Jose State University; Brian G. Thomas, Chief Finance Officer, Metropolitan Water District of Southern California; Steve Heminger, Executive Director, Metropolitan Transportation Commission; Peter Gordon, Professor of Policy, Planning, and Development, University of Southern California; Michael Deane, Office of Water, United States Environmental Protection Agency; Michael A. Pagano, Professor of Public Administration and Interim Dean, College of Urban Planning and Public Affairs, University of Illinois, Chicago.

A highlight of the day was Martin Wachs' historical overview of transportation finance in California, "When the Gas Tax Runs Dry." Wachs suggested that user fees for infrastructure are nothing new, but are absolutely critical to funding future needs. New technology for electronic tolling has made user fees easier to implement. Moreover, user fees could actually promote environmental goals and improve the efficiency of transportation systems overall, in that some commuters would likely seek alternatives to fees and thus be spurred on to car pool or take public transportation.

Another highlight was Asha Weinstein Agrawal's informative presentation of recent survey results that suggested a major generation gap in attitudes toward financing innovation. According to the survey, young people are most likely to support private sector investment in new transportation infrastructure as well as support potential "green" fees that promote environmental goals.

Prof. David Dowall stressed the need for innovation and change in the approach to financing infrastructure, pointing out that California was no longer on the cutting edge. According to Dowall, in order to catch up and remain competitive, California should look to existing model programs and strategies implemented throughout the country and the world. As such, state and local leaders could benefit from lessons learned elsewhere and adopt approaches to financing that have already been tested and refined.

Michael Pagano, of the University of Illinois, also emphasized the importance of critical comparisons, noting that California lags behind many other states in terms of its overall infrastructure performance management. He underscored the importance of linking new financing with sound planning and the efficient use and maintenance of existing facilities.

Several speakers addressed the central problem with water infrastructure financing, which is a major disconnect between the value of water and its pricing in the state. Both Brian Thomas, Chief Financial Officer of the Metropolitan Water District of Southern California, and Michael Deane of the U.S. Environmental Protection Agency spoke about the importance of pricing water appropriately to promote conservation and manage demand, as well as to support investment in the facilities that will meet future needs and environmental goals. Often, the true costs of providing water are not reflected in its price for users, leading many users to take this scarce and vital resource for granted.

Ellen Hanak of the Public Policy Institute of California underscored this point as well, although she focused on the need for new investment in flood control infrastructure as an even more urgent problem. Aging levies and deteriorating environmental quality in the Sacramento Delta could threaten the water supply of the entire state and poses a major financial and political challenge for state leaders.

While speakers did not always agree on the preferred mechanisms for new investment in infrastructure, it was clear by the end of the final session that innovation and flexibility in financing is critical in the face of such enormous need. Richard Little remarked, "The magnitude of infrastructure revenue shortfalls is such that we must consider all options for financing transportation and other vital services."

About The Keston Institute

The Keston Institute for Public Finance and Infrastructure Policy at the University of Southern California is a non-partisan research center that actively addresses California and the nation's public finance and infrastructure challenges. It is specifically focused on regional and national transportation and water issues and promoting economic viability, livability and environmental sustainability.

The University of Southern California (USC), which houses The Institute within its School of Public Policy, Planning and Development (SPPD), whose faculty collectively ranks third at USC in terms of per capita research grants, is one of the nation's leading research facilities for issues relating to public finance and infrastructure finance in the nation.

Together with the Keston Institute, the USC School of Policy, Planning and Development, has created the only educational and policy degree track in the field of civil infrastructure, with the goal of making USC a world leader in infrastructure and policy development.

The Institute's ongoing research is exclusively focused on analyzing core infrastructure challenges facing California and the nation, while presenting realistic, objective recommendations to voters and policymakers. For more information about The Keston Institute, please visit http://www.usc.edu/keston

Source: Business Wire

More News in this Category