CED Report Reveals Severity of America's Deteriorating Infrastructure, Provides Modernization Plan for Public and Private Sectors

WASHINGTON, Feb. 18, 2021 /PRNewswire/ -- Neglected for too long, America's severe infrastructure needs must finally be placed at the top of the US policy agenda. To that end, the Committee for Economic Development of The Conference Board (CED) has released a new, comprehensive report with several policy recommendations to address this building crisis.

From highways and bridges to air traffic control and water resources, and from energy production to broadband internet access, nearly every facet of the country's infrastructure is below global standards and deteriorating daily. The devastating impact of COVID-19 has not only underscored the shortfalls in the system - for example, by highlighting the inequities in access to reliable, high-speed internet. The pandemic has also increased the urgency of raising America's global competitiveness.

A US Infrastructure Plan: Building for the Long Haul lays out principles for closing the infrastructure gap and details public and private sector policy recommendations to return the US to world-class status.

"Modernizing our infrastructure is one of the few issues that enjoys broad bipartisan support, so both sides can work together to comprehensively address this glaring issue," said Lori Esposito Murray, President of CED. "The large number of areas that fall under the infrastructure rubric demonstrates its importance to our economy. A sharp focus on its role and key issues can lead the nation toward faster economic growth and job creation, environmental protection, equality of opportunity, shared prosperity, and eventual public savings."

Not only is infrastructure a bipartisan issue, but it also crosses public-private lines in unexpected ways. While government is sometimes believed to be the source of all infrastructure weaknesses, private-sector responsibility is more salient in some areas.

As the report details, reasoned principles to close the substantial US infrastructure gap include:

    --  Improve infrastructure planning and decision making through cost-benefit
        analysis and increased coordination. Given the substantial role of
        federal financing in many state and local infrastructure projects, and
        the regional, multi-jurisdiction impacts of infrastructure, smart
        project selection requires substantial coordination in long-term design
        and planning. That includes bringing together private and public
        stakeholders across different levels of government and political or
        geographic boundaries. Improved project selection would reflect
        data-driven management of both existing and planned infrastructure
        assets, identifying the true needs, potential benefits, and life-cycle
        costs--and comparing the relative net value of maintenance or upgrades
        to existing infrastructure against the construction of new and
        additional capacity.
    --  Encourage and facilitate innovation. As technology advances, Federal
        infrastructure policy must respond, looking beyond particular categories
        of infrastructure, past allocation formulas, and rules of thumb.
        Instead, it must choose assets and solutions that best meet a
        community's or region's particular needs, recognizing that the best
        choices will change with the changing times. For example, dedicated
        funding for roads or rails will lead to rigid road- or rail-based
        solutions in proportion to the funding provided last year or 10 years
        ago, even if a different balance or approach--perhaps one not yet
        recognized, or more emphasis on data infrastructure--could better
        achieve the region's goals.
    --  Modernize and streamline regulation. CED has consistently advocated
        "smart regulation," subjecting new regulations to cost-benefit analysis
        and reviewing existing regulations for continuing cost-effectiveness. A
        smart regulation approach could reduce delays and cut through multiple
        layers of jurisdiction to ensure that review and permitting of projects
        address all important concerns, and that net benefits are maximized over
        time at all levels of government.
    --  Achieve appropriate private-sector involvement in public infrastructure
        choices. Much of the nation's infrastructure investment is in the nature
        of public goods, which are (or should be, in the public interest)
        available to all without restriction. However, in some instances, the
        services provided through infrastructure can be priced, and should be
        provided on the basis of willingness to pay. In those instances,
        well-designed public-private partnerships (PPPs) can foster efficiency,
        innovation, and long-term performance while transferring certain
        financial risks--like cost overruns and delays--from the public to
        private investors.
    --  Explore alternative approaches for utilizing private investment
        resources. Private-sector funding, particularly through tax-exempt
        municipal debt issuances, is central to current US infrastructure
        financing. However, creative financing mechanisms like Transportation
        Infrastructure Finance and Innovation Act assistance and the currently
        lapsed Build America Bonds program have encouraged efficient upfront
        utilization of private investment resources, including by allowing more
        nongovernmental investors to participate in infrastructure project
        financing. Policymakers should explore, evaluate, and support such
        creative alternatives.
    --  Incorporate user fees to gauge the value of, and finance, infrastructure
        projects. "User-pay" models can not only promote efficient project
        choices and achieve sustainable financing, but also ascribe the cost to
        the people who most directly benefit. Where appropriate, user-pay models
        yield better and fairer outcomes.
    --  Incorporate climate risk into evaluations of potential infrastructure
        investments. Changes in climate pose potentially sizable risks to the
        apparent value propositions of long-term assets, even though the timing
        and severity of those risks are uncertain. Serious cost-benefit analysis
        must include preparation for climate-related stresses or
        hazards--including more extreme weather events, such as increased flood,
        wildfire, and drought risks.

The entire report - the latest in a series of CED Solutions Briefs - can be accessed here. Contact the Committee for Economic Development of The Conference Board for inquiries, including interviews.

About CED
The Committee for Economic Development of The Conference Board (CED) is the nonprofit, nonpartisan, business-led public policy center that delivers well-researched analysis and reasoned solutions in the nation's interest. CED Trustees are chief executive officers and key executives of leading US companies who bring their unique experience to address today's pressing policy issues. Collectively they represent 30+ industries, over a trillion dollars in revenue, and over 4 million employees. www.ced.org

About The Conference Board
The Conference Board is the member-driven think tank that delivers trusted insights for what's ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org

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SOURCE Committee for Economic Development of The Conference Board (CED)