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Infrastructure 2012 Report Highlights Innovative Solutions at State,
Regional and Local Level
Constrained public budgets and a growing recognition at
the local level of the importance of infrastructure — combined
with lack of action at the federal level — are causing
states, regions and cities across the United States to seek innovative
infrastructure approaches and solutions. Local governments
are utilizing a range of strategies, including ballot
measures taken directly to the public, increased utilization
of technology and pricing and public-private partnerships,
according to Infrastructure 2012: Spotlight on Leadership, recently
released by the Urban Land Institute (ULI) and Ernst
& Young LLP.
This year’s report looks at an overall decline in infrastructure
funding globally, and it focuses on funding solutions
underway in the United States. Even as efforts to increase
infrastructure revenues at the federal level remain stalled,
states and localities are looking at other ways of overcoming
fiscal woes in an effort to move forward with projects that
can lay the foundation for economic growth. State and local
governments are funding critical infrastructure building or
refurbishment needs with increased sales or gas taxes, bond
issues and user fees, including tolls. Public-private partnerships
are a growing part of the equation.
Infrastructure 2012 notes that in many localities, people
are voting to raise taxes for infrastructure investment. From
2008 through 2011, ballots allocating funds to transit capital
or operations had a 73 percent success rate. More than
a dozen states have raised fuel taxes over the past year, and
drivers nationwide are accepting higher tolls for roads and
bridges. Local governments are taking advantage of tax increment
financing and special assessment districts as well
as public-private partnerships, while exploring alternative
sources of private investment such as sovereign wealth funds
and pension plans.
The study highlights six case studies showing how local
and regional governments are moving forward with muchneeded
infrastructure investments such as transit, ports,
bridges, roads, parks and water supply. “Global economic
competitiveness demands new kinds of regional entrepreneurship,”
the report states, noting that each of the case
studies can provide insight and inspiration for other localities
seeking infrastructure solutions.
Cited examples include:
• North Carolina’s Research Triangle is raising local funds
for a planned regional transit system spanning three
counties. In late 2011, one of the three counties (Durham)
passed a ballot referendum to fund its portion of
the system; now the other two must follow suit.
• Ballot measures also are being used in Oklahoma City,
which has achieved success with bundling proposed
civic projects into short-term, focused packages and
subjecting them to a vote. The city’s third Metropolitan
Area Projects initiative passed in late 2009 and is generating
$777 million for downtown parks and other civic
infrastructure.
• In Los Angeles, strong leadership from public officials
and grass-roots campaigning supported a $40 billion
ballot initiative, Measure R, to fund critical transportation
investments.
The report calls out New York City as a national
infrastructure innovator, citing its investments
in the World Trade Center transit hub, the
long-awaited Second Avenue subway, the Long
Island Railroad tunnel and more.
10 Compact Equipment June 2012 www.ceunbound.com