Repair Priorities: Transportation spending strategies to save taxpayer dollars and improve roads

Decades of underinvestment in regular repair have left many states’ roads in poor condition, and the cost of repairing these roads is rising faster than many states can address them. These liabilities are outlined in a new report by Smart Growth America and Taxpayers for Common Sense, released today, which examines road conditions and spending priorities in all 50 states and the District of Columbia. The report recommends changes at both the state and federal level that can reduce future liabilities, benefit taxpayers and create a better transportation system.

Repair Priorities: Transportation spending strategies to save taxpayer dollars and improve roads found that between 2004 and 2008 states spent 43 percent of total road construction and preservation funds on repair of existing roads, while the remaining 57 percent of funds went to new construction. That means 57 percent of these funds was spent on only 1 percent of the nation’s roads, while only 43 percent was dedicated to preserving the 99 percent of the system that already existed. As a result of these spending decisions, road conditions in many states are getting worse and costs for taxpayers are going up.

“Federal taxpayers have an enormous stake in seeing that our roads are kept in good condition,” said Erich W. Zimmermann of Taxpayers for Common Sense at a briefing earlier today. “Billions of precious tax dollars were spent to build our highway system, and neglecting repair squanders that investment. Keeping our roads in good condition reduces taxpayers’ future liabilities.”

“Spending too little on repair and allowing roads to fall apart exposes states and the federal government to huge financial liabilities,” said Roger Millar of Smart Growth America. “Our findings show that in order to bring their roads into good condition and maintain them that way, states would collectively have to spend $43 billion every year for the next 20 years – more than they currently spend on all repair, preservation and new capacity combined. As this figure illustrates, state have drifted too far from regular preservation and repair and in so doing have created a deficit that is going to take decades to reverse.”

The high cost of poor conditions
According to the American Association of State Highway and Transportation Officials, every $1 spent to keep a road in good condition avoids $6-14 needed later to rebuild the same road once it has deteriorated significantly. Investing too little on road repair increases these future liabilities, and with every dollar spent on new construction many states add to a system they are already failing to keep in good condition.

State and federal leaders can do more to see that highway funds are spent in ways that benefits driver and taxpayers. More information about the high cost of delaying road repair, how states invest their transportation dollars and what leaders can do to address these concerns is available in the full report.

Click here to read the full report, state-specific data and view the interactive map.

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"An increasing movement toward more walkable cities"

CNBC released its list today of the top 10 most walkable cities in America, and includes in it a discussion of the growing trend among towns and cities to create neighborhoods with pedestrian-friendly streets and bustling downtown shopping districts. These features are a key part of smart growth development strategies and, as CNBC writer Cindy Perman explains, walkable neighborhoods have benefits beyond street-level charm. Walkable neighborhoods feel safer and more social, and help build exercise into daily routines. But even more importantly, walkable neighborhoods bring economic benefits:

You wouldn’t spend much time hanging around in the parking lot of a strip mall in a car-dependent suburb. But, you would linger in a very walkable city, which means you’re more inclined to spend more. Quite a bit more, in fact. The Urban Land Institute studied two Maryland suburbs of Washington, DC, one walkable and one not. They found that the Barnes & Noble book store in the walkable suburb made 20 percent more in profits than the one in the driving-dependent suburb.

“We call that a place-making dividend,” McMahon said. “People stay longer and come back more often and spend more money in places that attract their affection.”

There’s an economic benefit for homeowners, too: Homes in walkable cities hold their value better than those that were heavily reliant on driving, according to Smart Growth America, a group that promotes “smart growth” instead of suburban sprawl.

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Metropolitan Business Plans: A New Approach to Economic Growth

Too frequently, towns and cities seek economic growth by chasing the latest fad, without considering how those short-term decisions will impact their long-term economic health. On Monday, the Brookings Institution Metropolitan Policy Program held a forum presenting three pilot projects that helped communities create long-term evidence-based business plans.

Yesterday’s speakers included Bob Weissbourd of RW Ventures, LLC; Brad Whitehead of the Fund for Our Economic Future, Northeast Ohio Pilot Program; Eric Schinfeld of the Puget Sound Regional Council; Mayor R.T. Rybak of Minneapolis; Mayor Chris Coleman of St. Paul; Mayor Ray Stephanson of the City of Everett and Puget Sound Regional Council; Derek Douglas of the White House Domestic Policy Council; Daniel Malarkey of the Washington State Department of Commerce; Kim Nelson of Microsoft; and U.S. Senator Amy Klobuchar of Minnesota.

In cooperation with Brookings, leaders in Northeast Ohio, Minneapolis/St. Paul, and the Puget Sound region have created strategic business plans to promote resilient economic development for each region. The metropolitan business plans will help these regions capitalize on local strengths and increase capacity, allowing each local economy to better weather short-term cyclical economic fluctuations.

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Five Cities Argue the Economic Case to Tear Down a Highway

Commuters sitting in gridlock may find it hard to believe, but many smaller and mid-size cities in America have under-used highways. In some of these cities, highways that were built decades ago are now impeding potentially valuable real estate development. And as many highways from the middle of the last century deteriorate past the point of minor repairs to needing to be entirely rebuilt, leaders in these cities are starting to question the cost and efficiency of maintaining certain pieces of their highway systems.

In Seattle, Cleveland, Syracuse and a number of other cities across the country, leaders are debating the merits of removing portions of their underused, crumbling highway systems to allow for economic development instead. As older highway segments meet the end of their useful life, civic leaders are presented with a rare opportunity to reduce expenses on underused infrastructure and create new opportunity for development at the same time. (editors note: according to transportation engineers, a road or bridge’s “useful life” is determined to be over when repairs are so expensive and the conditions are so bad that it would cost several times more to rebuild the road or bridge than to tear it down and build something different.)

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Working for better transportation options in Washington state

A new campaign in Washington is fighting to improve transportation for people across the state. Transportation for Washington, a project launched this week by Smart Growth America’s coalition partners Futurewise and the Transportation Choices Coalition, is calling for better repair and maintenance of roads across the state as well as more transportation choices for Washingtonians. These transportation spending strategies – which are in line with many of Smart Growth America’s recent recommendations for Washington – create jobs, spur economic growth and improve Washington’s transportation system at the same time.

Roger Millar, Director of Smart Growth America’s Leadership Institute, discussed these same issues with Ross Reynolds on KUOW-94.9 Seattle’s The Conversation earlier this week. Together with Mike Ennis, Director of the Center for Transportation at the Washington Policy Center, Millar discussed the state of Washington’s transportation system and how the state can get more out of their transportation dollars:

Funding for public transportation is currently a hot topic in Washington state. A bill recently introduced to the state legislature would allow local transit agencies to seek funding to finance public transit projects. According to the Washington Transportation Commission, Washington currently has over $200 billion in unfunded transportation projects – and that need is growing.

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Tim Geithner on middle-class jobs and long-term growth

Secretary of the Treasury Tim Geithner with CNBC anchor Erin Burnett at the Port of Tacoma, WA. Photo: Flickr/Port of Tacoma

In a post on the U.S. Department of the Treasury’s website today Secretary of the Treasury Tim Geithner voices his support for infrastructure investments as a tool for economic growth. Geithner explains that “targeted infrastructure investments are a necessary component of creating the middle-class jobs we need now and strengthening our foundation for future economic growth.”

Today’s post comes on the heels of October 2010’s Economic Analysis of Infrastructure Investment, a report by the Treasury which reiterated the fact that well designed infrastructure investments have long term economic benefits that disproportionately benefit the middle class. The report also noted that there is currently a high level of underutilized resources that can be used to improve and expand our infrastructure, as well as strong demand by the public and businesses for additional transportation infrastructure investments. From Treasury.gov:

Well-targeted infrastructure investments create both immediate and long-term economic benefits. Those benefits accrue not only where the infrastructure is located but also to communities all across the country.

When the Port of Seattle improves its connection with local freight railroads, it creates construction jobs for local workers – but the project’s benefits extend far across the heartland. By making it cheaper to transport cargo, this improvement will allow cattle ranchers in rural Montana to ship their beef to new markets across the world. Consumers who purchase imported goods and American businesses that are expanding their exports enjoy lower prices and improved access to new markets and goods…

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New profiles provide a closer look at state transportation investments

A new report out today from Smart Growth America analyzes how all 50 states invested their flexible transportation funds from 2009’s American Recovery & Reinvestment Act (ARRA). The report examines what projects each state used its funds for, and whether those projects created as many jobs as possible.

Transportation projects create jobs in the short term but can also create the foundation for a stronger economy in the long term – particularly if those projects repair existing roadways or create public transportation options. As Newsweek’s David A. Graham explains:

It’s not enough just to inject money into infrastructure, because not all transportation funding is created equal—or at least, it doesn’t create jobs at an equal rate. As any infrastructure policy wonk can tell you, money spent on fixing up existing systems or building mass transit delivers more jobs, and faster, than building new highways.

Smart Growth America’s new report found that many states didn’t invest their funds this way and in doing so missed a significant opportunity to create more jobs. As a companion to that report, Smart Growth America has released state-specific recommendations for states looking for ways to improve their transportation investments.

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New report reveals smart transportation spending creates jobs, grows the economy

In his State of the Union address, President Obama called on Americans to “out-innovate, out-educate, and out-build the rest of the world” to win the future. To rebuild America, he said, we will aim to put “more Americans to work repairing crumbling roads and bridges.”

A new report from Smart Growth America analyzes states’ investments in infrastructure to determine whether they made the best use of their spending based on job creation numbers. Recent Lessons from the Stimulus: Transportation Funding and Job Creation evaluates how successful states have been in creating jobs with their flexible $26.6 billion of transportation funds from the American Reinvestment and Recovery Act (ARRA). Those results should guide governors and other leaders in revitalizing America’s transportation system, maximizing job creation from transportation dollars and rebuilding the economy.

According to data sent by the states to Congress, the states that created the most jobs were the ones that invested in public transportation projects and projects that maintained and repaired existing roads and bridges. The states that spent their funds predominantly building new roads and bridges created fewer jobs.

As Newsweek’s David A. Graham explains, investments in transportation create jobs in the short term and longer term economic prosperity too:

Injecting money into transportation projects, the thinking goes, is an especially potent jobs-creation tool because it not only puts construction workers and contractors to work quickly, it also lays the groundwork for future economic growth and development. Obama predicted the transportation money alone would put hundreds of thousands of workers on the job.

As “Recent Lessons from the Stimulus” explains, not all transportation projects reap these benefits equally:

[S]tates spent more than a third of the money on building new roads—rather than working on public transportation and fixing up existing roads and bridges. The result of the indiscriminate spending? States missed out on potentially thousands of new jobs—and bridges, roads, and overpasses around the country are still crumbling. Meanwhile, the states that did put dollars toward public transportation were richly rewarded: Each dollar used on transit was 75 percent more effective at putting people to work than a dollar used for highway work.

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