Our Failing Infrastructure

Incoming chair of the White House Council of Economic Advisors, Lawrence Summers, wrote eloquently in the Washington Post   this weekend about President-elect Obama’s American Recovery and Reinvestment Plan which includes funding for infrastructure.

Summers gives a few more details about the proposed plans, specifically addressing the upgraded jobs figure of 3 million, but what is most striking is his insistence that the recovery dollars go to programs and projects that will make the economy strong for years to come. The same assertion ASCE has been making for years. He sees a very real need to put people back to work in the short run, but also build for the future, “Failure to create enough jobs in the short term would put the prospect of recovery at risk. Failure to start undertaking necessary long-term investments would endanger the foundation of our recovery and, ultimately, our children’s prosperity.” 

Another of Summers’ points worth mentioning to those who might be skeptical about the price tag and expanding the reach of government over the economy: most of the jobs and growth created would be in the private sector as those new workers create demand for goods and services. Additionally, Summers seconded Vice President-elect Biden’s promise that there will be no earmarks in the bill and that investments will be made in a prudent and worthwhile manner.

To guide decision-makers in the coming months, ASCE has prepared a set of principles for infrastructure investment available on our website.

Even during the Holiday break, talk in Washington still revolves around the Economic Recovery package and what the funding level will be for infrastructure projects.  Since ASCE President Wayne Klotz sent his email to all ASCE members on Friday, December 19th regarding the Economic Recovery and ASCE’s ongoing efforts, the ASCE Washington office has had meetings with Senate Majority Leader Harry Reid’s office, the Department of Transportation Transition Team for President-Elect Obama, and the Senate Environment and Public Works Committee. 

Our message has been simple – any investment in infrastructure must do more than just create jobs, it must begin to address the nation’s crumbling infrastructure by providing long term benefits to the public with a focus on public health and safety.  ASCE has put together a set of “Principles for Infrastructure Stimulus Investment” that were delivered to Captiol Hill and President-elect Obama on Tuesday, December 23, 2008.

As the New Year approaches, ASCE’s lobbying efforts will intensify as we work with Congress and the incoming administration to incorporate these Principles in the Economic Recovery legislation.  ASCE’s Key Contacts will be urged to communicate with their elected officials once the 111th Congress convenes on January 6, 2009.

 ASCE believes that all projects supported by an economic stimulus investment must meet the following fundamental criteria: 

• Projects must create and sustain employment increases;
• Investments must provide long term benefits to the public (such as congestion relief); 
• Long term maintenance and upkeep needs of all infrastructure projects - existing and new - must be taken into account; and
• To ensure accountability and transparency an auditing program must be established to review the program and measure desired outcomes.

As the investments are made, proper attention must be paid to the prioritization and selection of these projects to ensure that the criteria are met. The following principles should guide selection decisions: 

• The project should deliver measurable improvements in public health, safety and quality of life;

• The project should provide substantial, broad-based economic benefit;
• The project should be designed and built in a sustainable and cost-effective manner, and proper consideration must be given to life-cycle costs; and
• The project should have a significant environmental benefit such as area restoration, improved air quality through reduced congestion and better watershed management through eliminating vulnerabilities in a system.

This morning’s Washington Post reports that as the economic situation continues to worsen, President-elect Barack Obama’s proposed economic recovery plan’s goals and price tag continue to grow.

When Obama announced his plan in early December, he proposed a large stimulus to create 2.5 million jobs over two years. His team of economic advisors now predict that the economy will lose as many as 3.5 million jobs over that time, and so the proposed plan has been adjusted upward to create about 3 million jobs. Economists are calling for a total of about $850 billion to be spent on healthcare aid to states, telecommunications, energy, and of course, infrastructure.

The specifics of how the money will be spent  for infrastructure are still not clear. The Post sites a number of $350 billion, but includes aid to hospitals in that number. As the details of the plan are formed, ASCE will be working with the transition team and Congressional leaders to ensure that the money is wisely invested and targets the most pressing needs.

The call to invest in the nation’s infrastructure for economic recovery has grown so loud it can no longer be ignored. Congress and the Obama administration are scheduled to act on this issue in the first days of 2009. In the coming days and weeks, ASCE will be leading the charge to ensure those investments are made in a focused and responsible manner that will not only meet the primary goal of creating and sustaining jobs, but will return health, safety, and economic benefits for years to come.

ASCE will be meeting with the new administration’s transition team and Congressional leaders, as well as encouraging its members to contact their representatives to demonstrate our support and the need for these critical investments.

Over the past few months, ASCE has heard from its members how the recession is impacting their lives. An immediate, and significant, investment in infrastructure is the best way to help engineers who are short or out of work. Additionally, these investments begin an important task of improving the condition of the nation’s infrastructure. This is the moment to act and make a real difference in the lives of not just civil engineers, but all Americans suffering economically. We may not get another opportunity like this again.

The exact scope and reach of the economic recovery package is not yet final. ASCE and its members will be working hard to influence what amount is invested and in what areas. For regular updates on the status of the stimulus, keep checking this blog or ASCE’s Government Relations homepage.

Millions of people sit stuck in traffic, water and steam pipes routinely burst, and competition for scarce property makes people build too close to some structure such as dams and levees- that’s what we deal with every day. We all know that the nation’s infrastructure is inadequate to meet the needs right now, but what about next year, or twenty or fifty years from now? What will the challenges be that we need to overcome?

A hot topic right now is the need for water sources in the West and Southeast, and it’s expected to worsen over time. Compounding the problem are regulations that seek to address a narrow environmental goal, but in reality put the public health and economic well being at risk.

A recent rule making by the U.S Fish and Wildlife Service sought to protect certain species of fish in the Sacramento-San Joaquin Delta. A laudable goal applauded by many environmental groups. The problem is though, to do that, the California Department of Water Resources must restrict the amount of water it pumps out of the Delta. That source provides water for almost 2/3 of all Californians and millions of acres of farmland. When the state experiences regular drought conditions, the amount of water available water for millions of people will be seriously reduced. Read more about it.

Preserving and protecting our environment should not be about saving one species here and another one there. We need to build and maintain infrastructure using sustainable practices that anticipate future needs along with environmental responsibility. By limiting the flow of water from the Delta, a potentially huge health and economic crisis is at risk because a small problem was solved. Those fish are undoubtedly an important part of the natural ecosystem and we should be rescuing them by changing the way we design and use infrastructure – not by eliminating it.

Problems such as water shortages will continue to grow in the future. We must solve them with sustainable solutions that address our needs and protect the environment. The fish in the Delta are not an isolated problem – but an indication of the demands we must take into account when designing and building infrastructure. Resilient and well-maintained structures will be a vital part of that new system, but a change in behavior and attitude is also needed. We need to understand our future needs and be realistic about the resources available to meet them. Narrow regulations that don’t consider the consequences are not the way forward.

Every time I open one of my investment statements these days, I catch myself wincing. It’s better not to look. And I’m pretty sure I’m not alone in this club. The turmoil in the financial markets is hitting all our wallets and bank statements and making us think twice about where we allocate our funds. But don’t give up and quit investing – markets go down, but they always go back up.

While those financial good times may seem far off, there are investments to be made now that will help them come back a little bit faster.

Many leaders and groups, ASCE included, are calling for a major economic recovery package that will include public works’ funding to create jobs and start rebuilding the nation’s crumbling infrastructure. As we reported on this blog earlier, President-elect Barack Obama is encouraging Congress to act quickly so he can sign the bill as his first official act as President.

Recent increases in the unemployment rate and the “D” ASCE’s Report Card for America’s Infrastructure  gave the nation’s infrastructure are proof that there are two problems that need solving, but there is still some resistance from lawmakers and the public to make huge outlays of funds. It’s true that with spending on the wars and aid to the financial sector and the auto industry, it might seem like we can’t afford to spend hundreds of billions dollars.

But let’s not look at it like spending – let’s call it a down payment on an investment. Present uncertain times excluded, people are willing to give over a huge chunk of their income to buy a house because they see it as an asset that will appreciate over time and afford them a greater quality of life – in other words, an investment. That is exactly what this recovery package is about.

In a recent Washington Post Op-ed Emil W. Henry argues that just the sub-standard condition of the infrastructure is reason enough to invest, and the need to create jobs makes it that much more critical. He sees infrastructure as the way to solve today’s problems and begin to mitigate problems that business and the public will continue to face even in good economic times, such as congestion, energy sources, environmental degradation, and public safety.

Will this new infrastructure investment solve the problem? No. Is it a good first step? Absolutely. Nobody knows better than ASCE the staggering needs facing the nation’s infrastructure and a one time funding boost won’t just solve the problem overnight. There’s no time like the present, however, so let’s get started on a big project. This plan will start making the critical improvements we need now. And don’t worry, we will continue to fight for continued improvements in the coming months and years. In the meantime, we get the added bonus of putting people back to work in the engineering and construction industry and helping those who serve that industry like shopkeepers, restaurateurs, and dry cleaners, to name a few.

That’s an investment that won’t make me wince.

For more commentary on the subject, check out Capital Games and Gains.