Investments in Infrastructure Help Communities Thrive
By Esther Turcios and Scott Downes
Colorado’s investment in infrastructure is vital to the economic prosperity and mobility of communities around the state. How people and businesses move around, where we live, how we access water and public utilities, and how goods and services are deployed all rely on strong public investments.
Now more than ever investments in our transit system, water treatment systems and many other publicly-used systems are necessary to address our growing population and help all Coloradans succeed.
Benefits of Investing in Infrastructure
Investments in infrastructure have both short-term and long-term benefits that are shared among everyone-individuals as well as businesses. Public investments in infrastructure, more so than private investments, can help spur job growth, maintain and improve our state’s environment, and improve the long-term quality of life for our residents.
In their 2012 report, the Economic Policy Institute found that the benefits of public investments in infrastructure extend beyond simply increasing GDP, and improve hard-to-measure assets like safer water and cleaner air. Further, the Center on Budget and Policy Priorities supports the argument that investment in public infrastructure fuels economic growth. For example, well maintained roads, airports, and ports ensure that manufacturers can obtain raw materials and parts, so they can deliver finished products to consumers. Also, renovated roads, highways and accessible transit allow workers to get to and from their homes to different locations where jobs are located. Finally, investments in housing are necessary and fundamental to addressing the housing needs of Colorado’s growing communities.
These types of public investments are critical for the well-being and economic prosperity of Coloradans. This is particularly true for rural communities and for individuals and families living in low-income areas, where schools, roads, and local water sources are in dire need of updates and expansions – which are often less likely to attract the kind of private investment seen in affluent areas, which in turn only benefits those who can afford it.
Investing In Colorado’s Infrastructure
Access to an affordable public transit system has profound effects on both productivity and communities. For instance, according to a study done by the American Public Transportation Association, for every dollar spent on public transit, $4 are returned to the economy. The study concludes that public transportation allows for better personal mobility, better access to job opportunities, and both monetary and health savings.
Unfortunately, transportation costs in Colorado are increasing quickly while funding has not kept up with the state’s growing needs. According to CDOT, Colorado is facing a $1 billion annual funding gap for transportation and infrastructure needs. Colorado’s gas tax ranks 40th in the country and has been static at 22 cents per gallon since 1991, when the average tank of gas cost less than half of what it is today. The state is working with a gas tax that has not changed in 25 years, but how much fuel you can purchase with it has.
Additionally, in the last 25 years, Colorado’s population has increased by 64 percent and the annual congestion time in major urban areas has increased 283 percent, while the CDOT budget has only increased 31 percent and total lane miles have only expanded by 15 percent. With high maintenance costs and revenue sources that don’t keep up with use, the state does not have funds to expand infrastructure to meet growing population needs and the changing economic environment.
Proposals that overly rely on toll roads, fee-for-service models, private investment, or taking away funding from other vital priorities like education or health care are not viable long-term solutions, as those ideas tend to provide a more narrow benefit to fewer communities, disadvantage rural areas and lower-income communities, and enrich private investors that do not have a long-term interest in a communities’ well-being.
Investing in Affordable Housing
Infrastructure is not just about how we get around, but also where we live. Housing is sometimes left out of infrastructure discussions and policy proposals but investing in development and rehabilitation of affordable housing is vital to Colorado communities. According to the Center on Budget and Policy Priorities, investment in housing infrastructure not only reduces hardship for low-income individuals and families, seniors, and people with disabilities, but it also help create jobs and generate economic activity. Colorado is currently facing a housing crisis, with 49.7 percent of renters paying more than 30 percent of their income on housing costs. In 2017, Colorado ranked as the 11th most expensive state for housing. A minimum wage worker would need to work 95 hours a week to make enough for a two-bedroom rental in Colorado to be less than 30 percent of their income. So, leaving housing out of infrastructure funding – or relying solely on private investment – would miss the opportunity to improve the well-being of all Coloradans.
Investing in Colorado’s Water System
Water control and air quality have become an issue of great concern for Coloradans who revere the state for its natural beauty. With the population boom in the recent years and periodic drought conditions, the state faces the possibility of a significant water supply shortage in the next few decades, according to the Colorado Water Conservation Board. Colorado’s eight major river basins are all facing many challenges. Conservation Colorado’s report card finds that the Colorado River, which supplies more water for Coloradans than any other river, has been given a D rating for “Bad,” due to the threats imposed by climate change, decreases in water flow, and increases in evaporation as a result of higher temperatures. The headwaters of the Arkansas River, which has a C “Needs Work” rating, are tainted by mining pollution and the Dolores River, also a D rating, is threatened by mining pollution and high water demands. As the foundation of Colorado’s environment and the arteries that help support communities and businesses, the state’s water system is in dire need of protection and care.
Looking Ahead to New Infrastructure Challenges
Colorado faces many challenges with its budget and its ability to invest in infrastructure needs, and these challenges are further compounded by the White House budget proposal and the Trump Administration infrastructure plan released in February. These two proposals include severe changes in federal policy and harmful cuts to federal support for infrastructure that would in sum likely put Colorado at a further disadvantage.
One of the key components of Trump’s infrastructure plan is that it aims to spur additional investment from states, local governments, and private investors (who are expected to profit from this plan). While headlines touted a $1.5 trillion plan, the proposal calls for just $200 billion in new funding over the next decade. And it would upend the current federal match of 80 percent and cap federal grants at 20 percent of new transportation projects, which constitutes an enormous cost shift to states and localities. For Colorado, this could mean an estimated loss of nearly $1.9 billion in federal highway and transit funding from FY 2021 to FY 2027, which could result in a loss of more than 23,000 jobs, as reported by the Center for American Progress.
Meanwhile, the White House budget proposal also calls for a reported $240 billion in funding cuts to highway, rail, aviation, transit, water, and other infrastructure programs.
Clearly, the Trump Administration’s infrastructure plan places an enormous burden on state and local budgets and favors a heavy reliance on private investment. But these are simply cost shifts that would cut federal support for infrastructure over the long term and concentrate those costs on states and cities, and eventually individuals and families through toll roads and other user-based fees. The heavy focus on private investment leads experts to anticipate that projects with an appealing potential return and likely profit will be preferred over projects that communities need.
Looking for Public Investment Solutions
The bottom line is that when Colorado invests in infrastructure, we’re investing in the services and supports that Coloradans use every day. From taking public transportation or driving on any of the state’s 23,000 miles of highways, to having access to clean water in our homes, to developing and renovating buildings that support affordable housing initiatives, Coloradans benefit from these shared public services and structures.
Colorado’s way of life and past economic growth is rooted in part by enormous public investments made in the post-World War II era. Those investments seeded the economic backbone and infrastructure that helped make today’s growth and prosperity possible. That is why we cannot afford simply to rely on federal investment or look solely to private investors to solve our infrastructure challenges
Rather, we need to identify new ways to make vital public investments in infrastructure that can help all Coloradans succeed and prosper, without turning to flawed ideas that will prioritize profit over public need.
