U.S. Transportation Infrastructure Needs Improving
A Panel of Transportation Experts Search for Solutions
In September 2009, 80 transportation experts met for three days to discuss the transportation infrastructure in the United States, and their conclusions are troubling, to say the least. The highly-credentialed group concluded that if innovative reforms are not undertaken soon, the U.S. transportation infrastructure will lag so far behind other superpowers such as China, Russia, and European nations that it will lead to an erosion of social and economic foundations for American prosperity. The group believes that an additional $134 billion to $262 billion must be spent per year through 2035 in order to improve all aspects of the transportation infrastructure.
Where will the money come from? Clearly, new sources of funds will have to be found. The group suggested that a major increase in the federal gas tax could boost revenue in the short term, but in the long term Americans may have to pay one or two cents per every mile they drive, which would generate the revenue necessary for a long term investment in transportation infrastructure.
The report indicates that there will be a change in how transportation infrastructure is funded, procured, and maintained. This will change the risk profile of firms that perform infrastructure design.