Infrastructure is the foundation of modern economies. A robust, efficient, and well-maintained infrastructure system is critical to support the nation’s economy, improve quality of life, and strengthen global competitiveness. The serious infrastructure deficit in the U.S. is well-known. State and local governments are struggling to finance the needed expansion, upgrades, and repairs. Meeting the infrastructure financing challenge has emerged as one of the most urgent issues facing the country.
Despite the growing number of innovations in state and local infrastructure financing, current information on innovative infrastructure financing is scattered and time-consuming to find. Until now, there was no detailed, comprehensive assessment of current knowledge and practice in innovative infrastructure financing. This book fills that gap and offers policy suggestions for state and local government managers who are considering the adoption and implementation of innovative infrastructure financing. It provides detailed case studies and rich examples that describe innovative approaches to fund state and local infrastructure development. These experiences and lessons in applying these innovations will be particularly useful for state and local government practitioners, professors, applied policy analysts, and students in public administration, policy, and public finance.
Author(s): Can Chen, John R. Bartle
Publisher: Palgrave Macmillan
Year: 2022
Language: English
Pages: 204
City: Cham
Preface
Acknowledgments
About This Book
Contents
About the Authors
List of Figures
List of Tables
1 The Challenges and Opportunities of Financing Infrastructure
1.1 Introduction
1.2 Definition and Scope of Infrastructure
1.3 Public Goods and Benefits-Based Revenues
1.4 Trends in State and Local Infrastructure Financing
1.5 Challenges
1.6 Opportunities
References
2 Capital Planning and Budgeting for Infrastructure
2.1 What Is a Capital Improvement Plan?
2.1.1 Define Capital Assets and Capital Expenditures
2.1.2 Defining a Capital Improvement Plan (CIP) and Capital Budget
2.2 Why Have a Capital Plan and Budget?
2.2.1 Rationale for a Capital Budget
2.2.2 The Benefits of Developing a Capital Plan and Budget
2.3 How to Develop a Capital Plan and Budget
2.3.1 The Policy Framework
2.4 The Process of Capital Planning and Budgeting
2.4.1 Capital Planning
2.4.2 Capital Budgeting
2.4.3 Adoption of Capital Budget
2.4.4 Implementation and Monitoring of Capital Budget
2.4.5 Evaluation and Audit of Capital Budget
2.5 Citizen Involvement in Capital Budgeting
2.6 Emerging Challenges in Capital Planning and Budgeting
2.6.1 Climate Change and the Environment
2.6.2 Emerging Technologies
2.6.3 Integrating Racial and Gender Equity in Capital Planning
References
3 Traditional Methods of Financing Infrastructure
3.1 Fundamentals of Infrastructure Finance
3.1.1 Why Do Governments Provide Infrastructure?
3.1.2 What Makes Infrastructure Finance Special?
3.1.3 What are the Differences Between Infrastructure Funding and Financing?
3.2 State and Local Infrastructure Financing: Pay-Go vs. Pay-Use
3.3 Traditional Infrastructure Financing Methods and Funding Sources
3.3.1 Cash and Savings
3.3.2 Debt Financing
3.4 Key Principles for Infrastructure Finance
References
4 Innovative Mechanisms of Financing Infrastructure
4.1 The Need for Innovative Infrastructure Finance
4.2 An Overview of Innovative Infrastructure Finance
4.3 New Funding Sources
4.3.1 New Taxes: Local Option Taxes
4.3.2 New Taxes: VMT Tax
4.3.3 New Taxes: Electric Vehicle Tax
4.3.4 New Taxes: Carbon Taxes
4.3.5 New Fees: Value Capture
4.3.6 New Fees: Resilience Fees
4.4 New Financing Mechanisms
4.4.1 New Credit Assistance Tools: TIFIA Credit Assistance
4.4.2 Water Infrastructure Finance and Innovation Act (WIFIA)
4.4.3 Environmental State Revolving Funds (SRFs)
4.4.4 State Infrastructure Banks (SIBs)
4.4.5 New Bonds and Debt Financing Tools: GARVEEs
4.4.6 Green Bonds
4.4.7 Social Impact Bonds
4.4.8 Environmental Impact Bonds
4.4.9 Catastrophe Bonds and Resilience Bonds
4.5 New Financial Arrangements
4.5.1 New Financial Arrangements: Public–Private Partnerships (P3s)
4.5.2 Privatization
4.5.3 Infrastructure Investment Funds (IIFs)
4.5.4 Private and Nonprofit Philanthropic Partners
4.5.5 Crowdfunding
References
5 Case Studies in Innovative Infrastructure Financing
5.1 Value Capture
5.1.1 Description
5.1.2 Joint Development in Miami
5.2 State Infrastructure Banks
5.2.1 Description
5.2.2 Using SIB for Economic Development
5.3 Green, Social and Sustainable Bonds
5.3.1 Description
5.3.2 Experience with Green, Social and Sustainable (GSS) Bonds
5.3.3 Green Bonds for Sewer and Stormwater Repair Projects
5.3.4 Sustainability Bonds for Transit Projects
5.4 Public-Private Partnerships (P3s)
5.4.1 Description
5.4.2 Portland Transit Extension
5.5 Privatization
5.5.1 Description
5.5.2 Chicago Skyway and Indiana East–West Toll Road
5.5.3 Parking Meters in Chicago
5.6 Crowdfunding
5.6.1 Description
5.6.2 Experience with Crowdfunding
5.6.3 Crowdfunding for a Recreation Project
5.6.4 Crowdfunding for Cycling
References
6 Conclusion: Putting Innovation into Practice
6.1 Findings
6.2 The Challenge of Innovation
6.3 Conclusion
Index
