“California's budget crisis underscores the state's critical need for a long-term modernization and global competitiveness strategy before it is too late,” said the Southern California Leadership Council (SCLC).
Among the reforms in Governor Schwarzenegger's budget compromise, says the SCLC, is an economic stimulus package which provides statutory authority to develop public-private partnerships with design-build authority to add new and accelerate existing infrastructure projects.
The package also expedites allocation and disbursement of existing transportation, housing and water bond funds.
“The impacts and inefficiencies of our infrastructure backlog threaten not only the state's economic vitality and our quality of life, but the jobs of state employees if declining state revenues and the resulting financial inability to service the debt on state obligation bonds for new infrastructure continue,” added SCLC.
A 2005 study by the Los Angeles County Economic Development Corp. presented a $10 billion strategy to address 10 years of infrastructure and environmental improvements on the trade corridors. Using a public-private partnership model, California would have funded one third of the cost through revenue bonds, one third through the federal government and one third through a combination of highway funds and tax credits and private-sector investment.