Three Studies on Infrastructure Needs and Financing

摘要

This document reviews the literature on urban infrastructure needs and financing in order to evaluate infrastructure problems, the impact of recent Federal policy initiatives, and alternative policy approaches. The examination of infrastructure needs focuses on two areas: (1) trends in investment and net capital stock data and (2) conditions assessment studies. Analysis of investment and net capital stock data show that net additions to the nation's infrastructure have declined since the late 1960's. Condition assessment studies present relatively little reliable information, but do reveal that some urban governments have neglected repair and replacement of their infrastructures for many reasons, including Federal grant incentives to build new structures, fiscal stress, and taxpayer resistance to bond issues. The decline in infrastructure spending has been viewed as a breakdown in the system for financing infrastructure or as a temporary adjustment to fiscal problems. Evidence suggests there is some truth in each interpretation. Finally, Federal policy changes since 1980 increased the difficulty of financing infrastructure, although adjustments made in late 1982 mitigated these problems. The literature suggests four Federal policy alternatives: expanding the Federal role through federally subsidized infrastructure banks or the taxable bond option; limiting it to projects of clear national importance; improving Federal planning, budgeting, and information on infrastructure; and developing an effective program of counter - cyclical grants. References are appended.