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| May 20, 2011
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$2 Trillion Needed to Address Nation's <br>Infrastructure Challenges, ULI Finds |
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The United States is falling significantly short when it comes to addressing major transportation infrastructure priorities, concludes a report released Monday by the Urban Land Institute. The nation will need to invest an estimated $2 trillion just to rebuild deteriorating networks and more money to expand or at least maintain infrastructure that encompasses roads and bridges as well as water lines, sewage treatment plants, and dams, ULI asserts.
"In contrast with its global competition, the United States is lurching along a problematic course -- potentially losing additional ground," according to the report. "After more than 30 years of conspicuously underfunding infrastructure and faced with large budget deficits, increasing numbers of national and local leaders have come to recognize and discuss how to deal with evident problems. But a politically fractured government has mustered little appetite to confront the daunting challenges." The report, which focuses on both the infrastructure challenges and financial constraints that confront 20 major metropolitan regions, finds that some cities have had more success than others moving forward with key projects due to pooling resources among local governments and achieving consensus on planning and spending. Other cities examined in the report, however, have been compelled to cut back on new projects and still come up short on money for needed repairs. "They must make difficult triage decisions, including service cutbacks and fare increases for transit systems," according to the report. ULI determined that there has been a mixed record to date with regard to the success of public/private partnership. The report points out how some states -- including Virginia, Florida, and Texas -- have been enjoyed more success than most in hammering out relationships with private firms to design, build, operate, and maintain transportation infrastructure. "The federal government could help by establishing an office to research and disseminate PPP best practices, investigate international PPP approaches, and keep a list of U.S. projects seeking private funding," according to the report. Other recommendations made by ULI include giving the highest priority to projects to repair and upgrade existing networks, focusing funds on metropolitan areas, creating federal and state infrastructure banks to help support project financing for such initiatives as public/private partnerships, and ensuring increased long-term certainty for federal money on behalf of planning for capital projects. In addition, the report recommends that the federal government develop a national infrastructure strategy and use a "Race to the Top" model to finance merit-based projects that would support the nation's large-scale economic priorities. The 90-page report, "Infrastructure 2011: A Strategic Priority," is available at bit.ly/ULI-Report. Questions regarding this article may be directed to editor@aashtojournal.org. |