PROJECTUsing Dollars with Sense: Ideas for Better Infrastructure Choices

Tracy Gordon, Shoshana Lew, and Matt Rogers: Infrastructure Needs More Than Just Dollars: It Needs Sense
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January 16, 2018

America has an infrastructure deficit, a gap between what the nation spends on roads, bridges, airports, waterways, and other public works and what it should spend. The American Society of Civil Engineers pegs this gap at $2 trillion over the next decade, although there is uncertainty about these estimates.

The overall highway and transit system appears to be improving, but in some places, President Trump is right: our infrastructure is crumbling. We've all seen examples—in Flint, Michigan’s water crisis, Puerto Rico’s disinvestment in infrastructure and struggle to recover from Hurricane Maria, and even the DC region’s Metro system.  Policymakers have proposed many ways to address the issue, and President Trump is expected to make infrastructure a major legislative priority in 2018.  

But fixing our infrastructure requires more than money. It requires countless decisions by the federal government and the thousands of state and local governments on how to spend that money. These decisions will have far reaching and important consequences for budgets, as investments commit resources to new or existing projects that must then be implemented and maintained. 

Beyond financial impacts, projects affect people and communities in tangible ways. Infrastructure projects can increase employment and boost economic growth, but decisions on what roads, bridges, water pipes, internet grids, or other assets to build or tear down can also shape the lives of individuals and families.

Projects built today could last a century. Roads, bridges, and sidewalks across America still bear the imprint of the Works Progress Administration from the 1930s. Decisions made now could enable or prevent successful responses to changing technology, evolving natural and environmental risks, and other forces.

Our choices about infrastructure investments will have lasting impact. We must get them right.

To help inform such decisions, the Urban Institute is releasing “Using Dollars with Sense: Ideas for Better Infrastructure Choices,” a series of essays focused on the factors decision makers should keep in mind as they choose between projects and the tools they have to incorporate these criteria.  Urban Institute visiting fellow Shoshana Lew argues for one such tool in her new paper, calling attention to the potential of asset management to expand the use of life cycle cost analysis, risk management, and long-term planning and to do so in a way that integrates various costs and benefits into project planning: environmental risks; access to jobs, education, and healthcare; and integration of new technology with existing infrastructure. 

But various perspectives and policy levers exist. Over the next few weeks, we will publish essays from several experts on what these tools are and how they should be used to create an infrastructure system that is economically responsible, creates opportunity, and prepares us for the future. We don’t expect all the authors to agree, but by surfacing the possibilities, we hope to create a new resource for policymakers and infrastructure leaders to draw on as they make decisions that will reverberate for decades.

We are pleased to begin the incubator with contributions from former secretary of transportation Anthony Foxx, Kristina Swallow and Greg DiLoreto of the American Society of Civil Engineers, and Phillip A. Washington, CEO, Los Angeles County Metropolitan Transportation Authority.

We will publish contributions from additional experts in the coming weeks:

Angela Glover Blackwell, CEO, PolicyLink, and Anita Cozart, Senior Director, PolicyLink

Carlos Braceras, Director, Utah Department of Transportation

Paul Brubaker, President and CEO, Alliance for Transportation innovation

Janet Kavinoky, Vice President, Federal and State Governmental Relations, Vulcan Materials Company, and Emil Frankel, Senior Fellow, Eno Center for Transportation

Robert Perciasepe, President, Center for Climate and Energy Solutions

Jodie Misiak, Principal, Strategic Initiatives in Alternative Delivery, Advisory Services, WSP USA, and John Porcari, President, US Advisory Services, WSP USA 

Monique Rollins, Former Acting Assistant Secretary, Financial Markets, US Department of the Treasury

Robert Puentes, President and CEO, Eno Center for Transportation

Essays
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Sarah Rosen Wartell
Rapid changes to the environment, innovative technology, and shifting demographics remind us that even up-to-date infrastructure may not be sufficient to meet the challenges of the future.
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Tracy Gordon, Shoshana Lew, and Matt Rogers
“Our choices about infrastructure investments will have lasting impact. It’s crucial that we get them right.”
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Anthony Foxx
“Managing our assets should be about more than replacing pavement and fortifying bridges. As we plan, prioritize, and build, we must be mindful of the communities that our investments affect and the people they serve."
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Kristina Swallow and Greg DiLoreto
“Here are seven things the federal government should do to create and execute a major infrastructure package, ensure our infrastructure can meet growing communities’ needs, and drive our economy forward as it has in the past.”
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Phillip A. Washington
"I believe the federal government can make positive strides in adopting criteria for any new infrastructure plan that would blend key factors to ensure two priorities. First, it would ensure a maximum return on investment for federal taxpayers. Second, it would deliver more mobility for more Amer...
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Monique Rollins
"We should give policymakers and project sponsors access to the data they need to make thoughtful project selection decisions and bring down friction costs for investors looking at US infrastructure projects."
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Jodie Misiak and John Porcari
"Asset management and funding decisionmaking must also include criteria regarding the multimodal nature of transportation systems, and the various financial and contractual arrangements that might be necessary to ensure that asset management plans are funded and implemented for the full asset lif...
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Angela Glover Blackwell and Anita Cozart
"Investments should create conditions that allow everyone to contribute and succeed, particularly those who have been blocked from opportunity by racial inequities in infrastructure policy and practice."
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Paul Brubaker
Paul Brubaker: Rethinking Transportation Infrastructure Investment for the 21st Century
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Bob Perciasepe
"Resilience does not require any new government programs or major changes in how federal investment works. We already have most of the tools in place, but we need to ensure they are used thoughtfully and consistently."
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Emil Frankel and Janet Kavinoky
“It is essential that, whatever the level of new funding, available resources should be invested in the projects and programs that will bring the greatest economic, social, and environmental benefits.”
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Joseph C. Szabo
"Regions are more apt to succeed when they engage all residents and provide opportunities to participate in and contribute to the regional economy. Local and regional policies and planning decisions influence whether and how residents are connected to the economy."
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Marcia Hale
"The US has led the way in developing innovative infrastructure projects that boosted our productivity and made us the world’s strongest economy. We need to replicate that vision and continue to take bold steps"
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Robert Puentes
"To keep infrastructure from spasming back and forth in our national discourse, we need a new narrative. Without a comprehensive plan for upgrading, expanding, modernizing, integrating, and financing infrastructure, we will continue to go nowhere."
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John Robert Smith
"When made wisely, infrastructure investments bring prosperity to all residents, families, and workers and produce the rising tide that lifts all boats in their communities."
Policy Centers Metropolitan Housing and Communities Policy Center