An investment in infrastructure is an investment in California’s future. The state’s schools, universities, transportation systems, water systems, public safety facilities, and natural resources are the framework for the individual and collective quality of life enjoyed by Californians. Without a strong framework, our economy will falter, and our quality of life will be at risk.

The way California’s infrastructure projects are funded has changed since the 1960s.  In the 1960’s 42% of infrastructure revenues came from bonds.  Today about 78% comes from bonds, in addition to about 1% of the state’s General Fund.

Despite their importance, single expenditures on infrastructure during high times in the business cycle create impediments to meeting California's future needs. A lasting and dedicated infrastructure funding source is necessary. Existing revenue sources will not meet current and projected needs due to increasing costs for maintenance, repair, and new infrastructure development. As local sales taxes expire and other existing revenue sources – like gasoline taxes – erode, Californians will need to significantly increase and sustain infrastructure investments to prepare for future needs. It should be a critical goal of any infrastructure plan or project to¹:

• Maximize the return on investment for existing infrastructure
• Strive for maximum leverage of every state dollar spent on infrastructure projects
• Use an integrated, strategic approach to infrastructure funding

Equity in Infrastructure Investment

Equity considerations in infrastructure occur along four dimensions: access (who gets what), funding (who pays), long-term impacts (who gains), and participation (who decides).² Decisions about infrastructure impact everyone in the community and should be guided by principles designed to ensure that benefits and burdens are distributed fairly throughout the region. Having all of the public pay for infrastructure makes sense when the benefits are widely distributed as with education, libraries and parks and also when user fees are either hard to collect or felt to be unfair. Equity concerns need to be addressed if California starts to fund infrastructure by imposing new user taxes and fees. The means for collecting revenues to support infrastructure improvements should be determined and applied in ways that are fair and not disproportionately burdensome to those with lower incomes.

Infrastructure decisions have widespread impact on housing, development, investment patterns, and quality of life and the outcomes of those decisions must be fair and beneficial to all.³

¹ CA Commission on Building for the 21st Century

² Manuel Pastor, “Equity and Infrastructure: Some Thoughts”

³ Angela Glover Blackwell, “Water, Bridges, and Sewers:Seven Principles for Achieving Racial and Economic Equity in Infrastructure Planning,” Policy Link