| 
							
							
								NewGeography.com blogs 
							
															   
        	
    
        
    I recently looked at the changes in jobs in metro areas for 2012. Here’s a follow-on look at unemployment.  First a look at the   national unemployment rate picture, which has improved remarkably.  
  
 2012 Unemployment Rate by County
 
 To put this in perspective, here’s the corresponding map for 2009: 
  
 2009 Unemployment Rate by County
 
 It’s interesting to see where there has been improvement versus where   there hasn’t, though I stop thresholding at 10% so that if people we   well above it but dropped to just merely above it, my maps wouldn’t show   that improvement.  Here’s a look at the large metro areas, ranked by total decline in unemployment rate.  
| Rank by Total Improvement | Metro Area | 2011 | 2012 | Total Change |  
| 1 | Las Vegas-Paradise, NV | 13.5 | 11.2 | -2.3 |  
| 2 | Orlando-Kissimmee-Sanford, FL | 10.2 | 8.4 | -1.8 |  
| 3 | Tampa-St. Petersburg-Clearwater, FL | 10.6 | 8.8 | -1.8 |  
| 4 | Miami-Fort Lauderdale-Pompano Beach, FL | 10.2 | 8.5 | -1.7 |  
| 5 | Jacksonville, FL | 9.9 | 8.3 | -1.6 |  
| 6 | Sacramento–Arden-Arcade–Roseville, CA | 11.9 | 10.4 | -1.5 |  
| 7 | Birmingham-Hoover, AL | 7.9 | 6.4 | -1.5 |  
| 8 | Cincinnati-Middletown, OH-KY-IN | 8.6 | 7.1 | -1.5 |  
| 9 | Riverside-San Bernardino-Ontario, CA | 13.6 | 12.1 | -1.5 |  
| 10 | Nashville-Davidson–Murfreesboro–Franklin, TN | 8.1 | 6.6 | -1.5 |  
| 11 | Louisville/Jefferson County, KY-IN | 9.7 | 8.3 | -1.4 |  
| 12 | San Jose-Sunnyvale-Santa Clara, CA | 10.0 | 8.6 | -1.4 |  
| 13 | Columbus, OH | 7.5 | 6.1 | -1.4 |  
| 14 | Kansas City, MO-KS | 8.0 | 6.6 | -1.4 |  
| 15 | Houston-Sugar Land-Baytown, TX | 8.1 | 6.8 | -1.3 |  
| 16 | Charlotte-Gastonia-Rock Hill, NC-SC | 10.8 | 9.5 | -1.3 |  
| 17 | Seattle-Tacoma-Bellevue, WA | 8.7 | 7.4 | -1.3 |  
| 18 | San Francisco-Oakland-Fremont, CA | 9.4 | 8.1 | -1.3 |  
| 19 | Los Angeles-Long Beach-Santa Ana, CA | 11.4 | 10.1 | -1.3 |  
| 20 | Salt Lake City, UT | 6.7 | 5.5 | -1.2 |  
| 21 | Phoenix-Mesa-Glendale, AZ | 8.5 | 7.3 | -1.2 |  
| 22 | St. Louis, MO-IL | 8.8 | 7.6 | -1.2 |  
| 23 | Dallas-Fort Worth-Arlington, TX | 7.8 | 6.7 | -1.1 |  
| 24 | San Diego-Carlsbad-San Marcos, CA | 10.0 | 8.9 | -1.1 |  
| 25 | Detroit-Warren-Livonia, MI | 11.6 | 10.5 | -1.1 |  
| 26 | Portland-Vancouver-Hillsboro, OR-WA | 9.3 | 8.2 | -1.1 |  
| 27 | Atlanta-Sandy Springs-Marietta, GA | 9.8 | 8.8 | -1.0 |  
| 28 | Austin-Round Rock-San Marcos, TX | 6.8 | 5.8 | -1.0 |  
| 29 | San Antonio-New Braunfels, TX | 7.5 | 6.5 | -1.0 |  
| 30 | Memphis, TN-MS-AR | 10.0 | 9.0 | -1.0 |  
| 31 | Chicago-Joliet-Naperville, IL-IN-WI | 9.8 | 8.9 | -0.9 |  
| 32 | Minneapolis-St. Paul-Bloomington, MN-WI | 6.3 | 5.5 | -0.8 |  
| 33 | Raleigh-Cary, NC | 8.5 | 7.7 | -0.8 |  
| 34 | Providence-Fall River-Warwick, RI-MA – Metro | 11.1 | 10.3 | -0.8 |  
| 35 | Richmond, VA | 7.1 | 6.4 | -0.7 |  
| 36 | New Orleans-Metairie-Kenner, LA | 7.2 | 6.5 | -0.7 |  
| 37 | Cleveland-Elyria-Mentor, OH | 7.8 | 7.1 | -0.7 |  
| 38 | Oklahoma City, OK | 5.5 | 4.8 | -0.7 |  
| 39 | Denver-Aurora-Broomfield, CO | 8.6 | 7.9 | -0.7 |  
| 40 | Hartford-West Hartford-East Hartford, CT – Metro | 9.0 | 8.4 | -0.6 |  
| 41 | Milwaukee-Waukesha-West Allis, WI | 8.0 | 7.4 | -0.6 |  
| 42 | Indianapolis-Carmel, IN | 8.4 | 7.8 | -0.6 |  
| 43 | Baltimore-Towson, MD | 7.7 | 7.2 | -0.5 |  
| 44 | Virginia Beach-Norfolk-Newport News, VA-NC | 7.1 | 6.6 | -0.5 |  
| 45 | Boston-Cambridge-Quincy, MA-NH – Metro | 6.6 | 6.1 | -0.5 |  
| 46 | Washington-Arlington-Alexandria, DC-VA-MD-WV | 6.0 | 5.6 | -0.4 |  
| 47 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 8.6 | 8.6 | 0.0 |  
| 48 | Pittsburgh, PA | 7.2 | 7.2 | 0.0 |  
| 49 | New York-Northern New Jersey-Long Island, NY-NJ-PA | 8.6 | 8.8 | 0.2 |  
| 50 | Rochester, NY | 7.8 | 8.1 | 0.3 |  
| 51 | Buffalo-Niagara Falls, NY | 8.1 | 8.5 | 0.4 |  
        	
    
        
    Over the last few decades, humans achieved one of the most remarkable victories for social justice in the history of the species. The percentage of people who live in extreme poverty — under $1.25 per day — was halved between 1990 and 2010. Average life expectancy globally rose from 56 to 68 years since 1970. And hundreds of millions of desperately poor people went from burning dung and wood for fuel (whose smoke takes two million souls a year) to using electricity, allowing them to enjoy refrigerators, washing machines, and smoke-free stoves. Of course, all of this new development puts big pressures on the environment. While the transition from wood to coal is overwhelmingly positive for forests, coal-burning is now a major contributor to global warming. The challenge for the 21st Century is thus to triple global energy demand, so that the world's poorest can enjoy modern living standards, while reducing our carbon emissions from energy production to zero. For the last 20 years, most everyone who cared about global warming hoped for a binding international treaty abroad, and some combination of carbon pricing, pollution regulations, and renewable energy mandates at home. That approach is now in ruins. In 2010, UN negotiations failed to create a successor to the failed Kyoto treaty. A few months later cap and trade died in the Senate. And two weeks ago, the slow motion collapse of the European Emissions Trading Scheme reached its nadir, with carbon prices, already at historic lows, collapsing after EU leaders refused to tighten the cap on emissions. What rushed into the vacuum was "climate justice," a movement headed by more left-leaning groups like 350.org, the Sierra Club, and Greenpeace. These groups invoke the vulnerability of the poor to climate change but elide the reality that more energy makes them more resilient. "Huge swaths of the world have been developing over the last three decades at an unprecedented pace and scale," writes political scientist Christopher Foreman in "On Justice Movements," a new article (below) for The Breakthrough Journal. "Contemporary demands for climate justice have been, at best, indifferent to these rather remarkable developments and, at worst, openly hostile." For the climate justice movement, global warming is not to be dealt with by switching to cleaner forms of energy but rather by returning to a pastoral, renewable-powered, and low-energy society. "Real climate solutions," writes Klein, "are ones that steer these interventions to systematically disperse and devolve power and control to the community level, whether through community-controlled renewable energy, local organic agriculture or transit systems genuinely accountable to their users…" Climate change can only be solved by "fixing everything," says McKibben, from how we eat, travel, produce, reproduce, consume, and live."It's not an engineering problem," McKibben argued recently in Rolling Stone, "it's a greed problem." Fixing it will require a "new civilizational paradigm," says Klein, "grounded not in dominance over nature but in respect for natural cycles of renewal."  Climate skeptics are right, Klein cheerily concludes: the Left is using climate change to advance policies they have long wanted. "In short," says Klein, "climate change supercharges the pre-existing case for virtually every progressive demand on the books, binding them into a coherent agenda based on a clear scientific imperative." As such, global warming is our most wicked problem. The end of our world is heralded by ideologues with specific solutions already in mind: degrowth, rural living, low-energy consumption, and renewable energies that will supposedly harmonize us with Nature. The response from the Right was all-too predictable. If climate change "supercharges the pre-existing case for virtually every progressive demand," conservatives long ago decided, then climate change is either not happening, or is not much to worry about. Wicked problems can only be solved if the ideological discourses that give rise to them are disrupted, and that's what political scientist Foreman does brilliantly in "On Justice Movements." If climate justice activists truly cared about poverty and climate change, Foreman notes, they would advocate things like better cook stoves and helping poor nations accelerate the transition from dirtier to cleaner fuels. Instead they make demands that range from the preposterous (e.g., de-growth) to the picayune (e.g., organic farming). Once upon a time, social justice was synonymous with equal access to modern amenities — with electric lighting so poor children could read at night, with refrigerators so milk could be kept on hand, and with washing machines to save the hands and backs of women. Malthus was rightly denounced by generations of socialists as a cruel aristocrat who cloaked his elitism in pseudo-science, in the claim that Nature couldn't possibly feed any more hungry months. Now, at the very moment modern energy arrives for global poor — something a prior generation of socialists would have celebrated and, indeed, demanded — today's leading left-wing leaders advocate a return to energy penury. The loudest advocates of cheap energy for the poor are on the libertarian Right, while The Nation dresses up neo-Malthusianism as revolutionary socialism. Left-wing politics was once about destabilizing power relations between the West and the Rest. Now, under the sign of climate justice, it's about sustaining them. This piece originally appeared at The Breakthrough. 
        	
    
        by Anonymous 04/21/2013
     President  Obama's FY 2014 budget request includes $77 billion for the Department of  Transportation and an additional $50 billion  "for immediate  transportation investments." His next transportation bill to follow  the current MAP-21, calls for a 25 percent increase in funding over  current levels and assumes a transfer of $214 billion to the trust fund over  six years "to maintain trust fund solvency and pay for increased  outlays." To offset this spending, the Administration proposes using  the "savings" or "peace dividend" from winding down the war  in Afganistan.  
 House  T&I Committee Chairman Bill Shuster (R-PA) was not impressed.   "The President's budget," he said,  "repeats his call to  increase spending without identifying a viable means to pay for it. .... You  can't just keep on spending money that you don't have."  "A  proposal we have seen three times before," observed Rep. Tom Latham  (R-IA), House Transportation Appropriation Subcommittee chairman referring to  the $50 billion request. With massive stimulus spending politically  out of fashion, the Administration is repackaging it as "transportation  investment." Bill Graves, president of the American Trucking Association,  spoke for many stakeholders when he remarked, "For five years, we've  waited for President Obama to clearly state how we should pay for these  critical needs and, I'm sad to say, we continue to get lip service about  the importance of roads and bridges with no real road map to real funding  solutions." As for the "peace dividend,"  the idea has been dismissed as "budgetary  gimmickry"  by congressional Democrats and  Republicans  alike.
 In sum, a  large segment of congressional and public opinion has pronounced the White  House proposals variously as "vague", "repetitive,"  "unrealistic," "implausible" and "politically  unachievable." Even the President's most loyal supporters in the transportation  community, the liberal advocacy groups, seemed disappointed  and circumspect in their comments.  
 This said, no one disputes President  Obama's and the infrastructure advocates’ claim that some of America’s  transportation facilities are reaching the limit of their useful life and  need reconstruction. Nor does any one disagree about the need to expand  infrastructure to meet the needs of a growing population. But fiscal  conservatives among infrastructure advocates (and we count ourselves among  them) contend that this does not rise to the level of a national crisis  requiring a massive $50 billion federal crash program as proposed  in the President's budget message, or the expenditure of more  than $100 billion per year as recommended by the American Society of Civil  Engineers (ASCE) in its latest "Report Card."  Instead, as we have argued in recent  columns, the challenge can be met if each state did its part to  progressively bring up its transportation facilities (including  its Interstate highway segments) to a "state of good repair," using  its own tax revenues and its formula allocation of the Highway Trust fund  dollars (which are expected to total $38-41 billion per year over the next  decade.)  As numerous news dispatches attest,  that's precisely what is happening (see below). A large number of  states are not waiting for the federal government to come to the rescue. They  are using their own resources and raising additional revenue to pay for  reconstruction and modernization of their aging facilities and to maintain their  transportation systems in good working condition. "Governors and  state legislatures realize that the level of federal assistance beyond 2014 is  highly uncertain and they are acting on a credible assumption that federal  funding will remain at current levels or may even be cut back," an  association executive who is familiar with the thinking of  senior-level state officials, told us. 
 What about  large-scale reconstruction and system-expansion projects that require  billions of dollars---transportation investments that are beyond the states'  fiscal capacity to fund on a pay-as-you-go basis out of annual cash flow?  Those investments,  provided they are credit-worthy (i.e. are  revenue producing or backed by dedicated tax revenue),  will  be mostly financed through long-term credit instruments   and public-private partnerships. The future of capital-intensive  infrastructure projects is intimately tied to the financial  involvement of the private sector and to a wider use of   tolling, "availability payments,"  and innovative  credit instruments such as TIFIA and private activity bonds (PABs), a  veteran facilitator of public-private partnerships told us. We list  below some of the transportation megaprojects that are being financed (or  are planned to be financed) largely with public and private credit rather  than with federal dollars out of congressional appropriations. 
 ###     
 Lending  credibility to the above funding scenario and hastening its  adoption are the new realities underlying the federal role in  transportation today. Those realities include: (1) a federal program that  no longer has a clearly defined mission or purpose and many of whose functions  are properly a state and local responsibility;  (2) a  Highway  Trust Fund that has lost its capacity to support large-scale  transportation investments and that has come to depend for its solvency on  periodic injections of  general funds;  (3) a bipartisan absence  of political will to raise the federal gas tax and (4) continued  inability to identify another credible revenue source  to  supplement or replace the gas tax.  
 In sum,  having the states assume financial responsibility for fixing  their aging transportation facilities and for preserving them in a  state of good repair,  while employing public and private financing for  major capital-intensive infrastructure investments, offers the best  solution to the current  federal funding dilemma. 
 NOTE:  States that recently have undertaken to raise additional funds for  transportation include: Virginia and  Maryland (broad  transportation funding overhaul  that includes a dedicated sales tax  applied to the wholesale price of gasoline.  A sales tax, it has been  argued, is no less a "user fee" than the gas tax since every  consumer who pays a sales tax also is served by or "uses"   the highway system for goods delivery );  Arkansas (one-half cent sales  tax increase to back a $1.3 billion bond issue to fund highway construction  over the next ten years);  Illinois (six-year $12.6  billion statewide construction program to improve roads and bridges);  Massachusetts ($13.7  billion bond-financed transportation plan); Maine ($100 million  transportation bond proposal) Michigan ( $1.5 billion  road plan funded with vehicle registration fees and a tax on fuel at the  wholesale level); Missouri (proposal for a  dedicated one-cent sales tax for transportation; the tax is expected to raise  $7.9 billion over ten years); New Hampshire (12-cent hike in the  gas tax over three years approved by the House; Senate approval  uncertain);  Ohio (turnpike toll-backed  $1.5 billion bond issue for highway and bridge improvements);  Pennsylvania ($2.5 billion Senate  transportation funding plan; House approval uncertain); Texas (statewide  tolling);  Wisconsin ($824-million boost  to the state transportation fund);  Wyoming (10-cent fuel tax  increase, the first in 15 years); and California, Oregon and Washington (exploring new  mechanisms for project finance through the cooperative West Coast  Infrastructure Exchange). In addition, several states which derive significant  revenue from their tollroads have raised toll rates. See also, "State  Transportation Funding Proposals,  AASHTO Center for Excellence in Project  Finance, April 2013 Recent major transportation infrastructure  projects largely financed,or to be financed, with long-term credit  instruments rather than federal dollars include: the I-495  Beltway HOT lanes project in Northern Virginia; New York's Tappan Zee Bridge  replacement; the San Francisco Bay Bridge Eastern Span replacement; the I-5 Columbia  River Crossing;  the Highway 520 floating bridge and the Alaskan Way  Viaduct in Seattle, the Midtown tunnel linking Norfolk and Portsmouth, VA;  East End Crossing over the Ohio River near Louisville; and the  PortMiami Tunnel. Please note that, except for the California High-Speed  Rail venture, there are no transportation megaprojects currently being planned  whose construction would depend primarily on federal appropriations. 
        	
    
        
    California's Governor Jerry Brown and an entourage of public  officials and corporate executives has spent much of the last week traveling  around China trying to drum up business for the state. One of his principal  objectives is to entice Chinese investors to take a stake in the California  high-speed rail project. From the Governor's perspective, this makes all sense in  the world.  California's high-speed rail program may be the current  holder of the largest projected funding deficit of any infrastructure in the world,  at approximately $50 billion. (That's after shaving $30 billion off the project  and losing the support of former California High Speed Rail Authority Chairman,  former state Senator Quentin  Kopp, who charges that the line is no longer "genuine high speed  rail"). As Governor Brown concludes his trip to the Orient, word  comes from The  San Francisco Chronicle that "A $1.7 billion deal with China  Development Corp., the Chinese national railway and Lennar Corp. to construct  12,500 homes on the former Hunters Point Naval Shipyard in San Francisco and a  string of high-rises on Treasure Island has collapsed." The project was to be built over up to three decades and  would have housed 20,000 people. The deal is said to have fallen apart over not  allowing the Chinese investors sufficient control and "unresolved tax  issues." The now defunct deal may have been the largest serious  Chinese investment proposal in California. There are important lessons for proponents of the high-speed  rail system, who sometimes fantasize about China as the bailout investor of  last resort. The Chinese, like the other investors who have found better things  to do with their money are not likely to be swayed by the line's excessively high cost or  its modest ridership potential. Nor will the Chinese bear gifts to  California. These issues are described in detail in the new Reason  Foundation Updated  Due Diligence report by Joseph Vranich and me. 
        	
    
        by Anonymous 04/02/2013
     During  his March 29 visit to the privately built and financed PortMiami tunnel  project, President Obama unveiled a new infrastructure plan. His latest proposal---costing  $21 billion--- includes a renewed call for a National Infrastructure Bank  capitalized at $10 billion,  a  $7 billion  "America  Fast Forward Bonds" program modeled after the former Build America  Bonds;  and a sum of $4 billion in direct loans and loan  guarantees. The White House announcement did not make it clear whether   this latest infrastructure initiative --- " to encourage private  investment in America's infrastructure" ---replaces or is in addition to the  $50 billion "fix-it-first" infrastructure plan that the  President announced in his State-of-the-Union address less than two months  ago (see, "Infrastructure Advocacy and Public Credibility,"  InnoBrief, Vol. 24, No. 2, February 20). Decidedly,  infrastructure investment remains on the President's mind. It also  continues to generate headlines. Just a week earlier, the American Society of  Civil Engineers (ASCE) released its latest  "report card" giving  the nation a D for highways and estimating the investment needs in surface  transportation to the year 2020 to amount to a staggering $1.723 trillion. With  expected funding during the same period amounting only to $877 billion,  the funding gap comes out to be an astronomical sum of $846 billion--- more  than $100 billion per year. As if to reinforce the ASCE conclusions, the  Washington Post came out with a front-page story about the deteriorating state  of the Capital Beltway, "a politically iconic and locally vital highway...  dying beneath your turning wheels"  (Beneath the Surface, the Beltway Crumbles,  March 31, 2013)
   What kind of  an impact the President's repeated pleas, combined with the  ASCE report card and alarming press stories of  "crumbling " infrastructure, will have on public opinion  and congressional attitudes remains to be seen. As we have  noted earlier, they come at a time of severe budget pressures and intense  Republican efforts to curb excessive discretionary spending. To be  successful,  pro-infrastructure advocates must explain to  the skeptical lawmakers where the money would come  from.  "At some point somebody  has to pay the bill,"  House Speaker John Boehner pointedly remarked in reaction to Obama's latest  infrastructure proposal. The advocates also must persuade fiscally  conservative House members that there are urgent and compeling reasons to  boost spending on public works that override the imperative to reduce  the deficit and get the nation's fiscal house in order. 
   Second, the  nation's taxpayers must become convinced that spending more on  transportation will make a difference in practical terms such as easing  congestion and improving the lot of  commuters, and that the money  will not be wasted on questionable projects that have little to do with  improving mobility. "The Bridge to Nowhere" as a symbol of wasteful  spending still lives in the collective public consciousness.  
   Third,  infrastructure alarmists must contend with the upbeat conclusions of  a Reason Foundation study, "Are Highways Crumbling?" That study  has found that  America's highways and bridges are in a far better  condition today than they were 20 years ago. "There are still plenty of  problems to fix, but our roads and bridges aren't crumbling," said David  Hartgen, lead author of the Reason study. "The overall condition of the  public road system is getting better and you can actually make the case that it  has never been in better shape." The study affirms what  the traveling public experiences every day ---- that  the  nation's highways and bridges not only are not "crumbling" but  in most places are holding up pretty well.  "Should I believe the pundits or my own eyes," asked  Charles Lane, a Washington Post editorial writer, in a much-quoted column after  having traveled thousands of miles "without actually seeing any crumbling  roads."  (The U.S.  Infrastructure Argument that Crumbles Upon Examination, October 31,  2012). 
 Fourth, as  one highly knowledgeable reader of ours (a civil engineer) has observed,  "we must get an objective, precise and quantifiable assessment of bridge  conditions  before launching full bore into repair or replacement  actions" costing billions of dollars. "Today," he wrote, " no one, and I mean no one  has an  objective, clear and precise understanding of the actual condition of America's  bridges." Before asking taxpayers for billions of dollars to fix a  problem based on subjective visual assessments of bridge  conditions,  we want to be very sure that we have accurate data to  back up our position, our reader concluded. His remarks about bridges  could equally well be applied to the condition of the nation's roads. 
   Lastly, infrastructure  advocates must overcome a cynical perception, common among the public, that  pressures to increase federal funding for transportation are nothing more  than special interest pleadings by interest groups that stand to profit  from higher levels of public spending (ASCE is one of  them, raising questions as to its objectivity, several observers  have noted). 
   As one  transportation advocate at a recent conference observed, "there is an  enormous disconnect between us and the American public" --- a disconnect  that may not be easy to overcome.
   States  Are Acting on their Own
   As we have argued in recent columns, no one disputes the  infrastructure advocates’ claim that some of America’s transportation  facilities, such as the Capital Beltway, are reaching the limit of their useful  life and need reconstruction. Nor does any one disagree about the need to  expand infrastructure to meet the needs of a growing population. But  fiscal conservatives among infrastructure advocates (and we count ourselves  among them) contend that this does not rise to the level of a national crisis  requiring a massive $50-70 billion federal crash program as proposed  by the President, or the expenditure of more than $100 billion per  year as recommended by ASCE.
   Instead, the  challenge can be met if each state did its part to incrementally, over a period  of years, bring its transportation facilities up to a "state of  good repair" using its own gas tax revenues  and  its formula allocation of the Highway Trust fund dollars. As  numerous news dispatches attest, that is precisely what's happening  (see below). A growing number of states are not waiting for the federal  government to come to the rescue. They are using their own resources and  raising additional revenue to pay for reconstruction of their aging  facilities-- "one lane at a time" if necessary---and keep  their transportation systems in good working condition. "Governors  and state legislatures realize that the level of federal assistance beyond 2014  is highly uncertain and they are acting on a credible assumption that federal  funding will remain at current levels or may even be cut back," an  association executive who is familiar with the thinking of  senior-level state officials, told us. 
   What  about  large-scale reconstruction and capacity-expansion  projects that require billions of dollars---transportation   investments that are beyond the states'  fiscal capacity to  fund on a pay-as-you-go basis? Those investments,  provided they  are credit-worthy (i.e. are revenue producing or backed by dedicated  tax revenue),  will be mostly financed through long-term credit  instruments  and public-private partnerships. The future of  infrastructure megaprojects is intimately tied to the financial  involvement of the private sector and to a wider use of   tolling, "availability payments,"  and innovative  credit instruments such as TIFIA and private activity bonds (PABs), a  veteran facilitator of public-private partnerships told  us. " President Obama was right to have shined a spotlight on  the PortMiami tunnel project and drawn attention to the  importance of private investment in major  transportation infrastructure. The Highway Trust Fund no longer can serve  that purpose." 
   The scenario  we have suggested above---i.e., having states assume financial  responsibility for fixing their aging transportation systems, while  relying on debt financing for major facility reconstruction and system  expansion---makes practical sense in view of the uncertain future level  of  federal transportation funding.  It also may constitute  a way to save the Highway Trust Fund from insolvency and provide a  lasting solution to the federal transportation funding dilemma.
   NOTE:  States that recently have undertaken to raise additional funds for  transportation include: Virginia and  Maryland (broad  transportation funding overhaul  that includes a dedicated sales tax  applied to the wholesale price of gasoline.  A sales tax, it has been  argued, is no less a "user fee" than the gas tax since every  consumer who pays a sales tax also is served by or "uses"   the highway system for goods delivery );  Arkansas (one-half cent sales  tax increase to back a $1.3 billion bond issue to fund highway construction  over the next ten years); Massachusetts ($13.7  billion bond-financed transportation plan); Maine ($100 million  transportation bond proposal);  Michigan ($1.5 billion  road plan funded with vehicle registration fees and a tax on fuel at the  wholesale level); Missouri (proposal for a  dedicated one-cent sales tax for transportation; the tax is expected to raise  $7.9 billion over ten years); New Hampshire (12-cent hike in the  gas tax over three years approved by the House; Senate approval  uncertain);  Ohio (turnpike toll-backed  $1.5 billion bond issue for highway and bridge improvements); Texas (statewide  tolling);  Wisconsin ($824-million boost  to the state transportation fund);  Wyoming (10-cent fuel tax  increase, the first in 15 years); and California, Oregon and Washington (exploring new  mechanisms for project finance through the cooperative West Coast  Infrastructure Exchange). 
   Recent  major transportation infrastructure projects largely financed with  long-term credit instruments rather than federal  dollars include: the I-495 Beltway HOT lanes project in Northern Virginia;  New York's Tappan Zee Bridge replacement; the San Francisco Bay Bridge Eastern  Span replacement; the I-5 Columbia River Crossing;  the Highway 520  floating bridge in Seattle, the Midtown tunnel linking Norfolk and  Portsmouth, VA, East End Crossing over the Ohio River, and the  PortMiami Tunnel. |