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1、CORPORATIONRESEARCHBRIEFFixingU.S.Infrastructure’sIllsRequiresanAccurateDiagnosisTohearmanypoliticianspunditstellitinfrastructureintheUnitedStates—includinghighwaysroadsbridgespublictransitwaterresourcessuchasdrinkingwat

2、erwastewaterfacilities—isinanembarrassingstateofdisrepair.Unftunatelythehyperboleobscuresrealneedsinsome—butnotall—localesaswellasthevalueofatargetedapproachtofixingwhatactuallyisbrokeninthenation’spoliciesonfundingfinan

3、cingoftransptationwaterinfrastructure.AnewreptbyresearchersinR’sInfrastructureResilienceEnvironmentalPolicyProgramfindsthatfundinglevelstheoverallphysicalconditionsoftransptationwaterinfrastructurearefarfromdire.Butchang

4、esinfundingfinancepolicyshouldbemadewithnationalregionalpriitiesinmind—notonlytorenewmodernizeinfrastructuretomeet21stcenturyneedstofixwhatisbrokenbutalsotorecognizethatsomeaginginfrastructuremayhaveoutliveditsusefulness

5、.Thereptofferspolicypreionsintendedtohelpthefederalgovernmentintemwithstatelocalgovernmentstheprivatesectrenewmodernizethenation’sinfrastructure.NeedfFederalLeadershipTopromotenationaleconomicdevelopmentthefederalgovernm

6、enthashisticallysupptedcapitalspendingontransptationwaterinfrastructurethoughasthefigureshowsfundingfoperationsmaintenance(O&M)hastraditionallycomemainlyfromstatelocalgovernments.Thefederalgovernmentalsohasplayedavitalro

7、leinsupptingresearchtospurinnovationindesignconstructionmethodsmaterialsO&M.Butfdecadesnowthefederalgovernmenthaslackedavisionpriitiesfrenewingadvancinginfrastructuremostvitaltothenation’seconomy.FexampletheHighwayTrustF

8、undisnotsustainableunlesstherevenuemodelisupdatedtoaccountfchangesinfuelefficiencyautomotivetechnologies.StatelocalgovernmentshavebeenshoulderinganevergrowingshareoftheO&Mburdenaccountingf62percentofcapitalexpenditures88

9、percentofO&Mspendingftransptationwaterinfrastructurein2014.Statelocalgovernmentsarestillinthebestpositiontomakedecisionsaboutinfrastructuremaintenancenewinitiativeswithintheirjurisdictions.Annualspendingincreasesbytransp

10、tationwaterinfrastructureownersof2.5to3percentwouldlargelyeliminateexistingmaintenancebacklogsby2030.SowhiletheRresearchersseenoneedflargescalechangesintheprimaryrolesplayedbythefederalstatelocalgovernmentsingovernanceof

11、infrastructureupkeepthefederalgovernmentneedstoupdatepoliciesstepupfundingsetnewnationalregionalpriitiesfthe21stcentury.SustainingModernizingU.S.InfrastructureThroughaTargetedApproachCongresscantakesteps—inconjunctionwit

12、hstateslocalentitiestheprivatesect—toimprovetheconditionofthenation’sinfrastructuretomeet21stcenturyneeds.TothatendtheRteamofferstenrecommendations:TAXEXEMPTBONDS:Preservethefederaltaxexemptiononinterestearnedfrommunicip

13、albondsfatleastthenextdecade.Taxexemptmunicipalbondsareneededtogivestatelocalgovernmentscontinuedstableaccesstocapitalwhilealternativefinancingmechanismsaredeveloped.Keymessages:?U.S.transptationwaterinfrastructurefundin

14、gfinancearenotnearlyasbrokenassomebelievebutanationalconsensusoninfrastructurepriitiesisneededaccompaniedbypolicychangesinfundingfinancing.?Annualspendingincreasesbytransptationwaterinfrastructureownersof2.5to3percentwou

15、ldlargelyeliminateexistingmaintenancebacklogsby2030.?Thefederalgovernmentshouldfocusonmaintainingmodernizingvitalfederalinfrastructureontargetingnationallysignificantprojectsthatarebeyondthecapacityofindividualstatesciti

16、es.CORPORATIONRESEARCHBRIEFFixingU.S.Infrastructure’sIllsRequiresanAccurateDiagnosisTohearmanypoliticianspunditstellitinfrastructureintheUnitedStates—includinghighwaysroadsbridgespublictransitwaterresourcessuchasdrinking

17、waterwastewaterfacilities—isinanembarrassingstateofdisrepair.Unftunatelythehyperboleobscuresrealneedsinsome—butnotall—localesaswellasthevalueofatargetedapproachtofixingwhatactuallyisbrokeninthenation’spoliciesonfundingfi

18、nancingoftransptationwaterinfrastructure.AnewreptbyresearchersinR’sInfrastructureResilienceEnvironmentalPolicyProgramfindsthatfundinglevelstheoverallphysicalconditionsoftransptationwaterinfrastructurearefarfromdire.Butch

19、angesinfundingfinancepolicyshouldbemadewithnationalregionalpriitiesinmind—notonlytorenewmodernizeinfrastructuretomeet21stcenturyneedstofixwhatisbrokenbutalsotorecognizethatsomeaginginfrastructuremayhaveoutliveditsusefuln

20、ess.Thereptofferspolicypreionsintendedtohelpthefederalgovernmentintemwithstatelocalgovernmentstheprivatesectrenewmodernizethenation’sinfrastructure.NeedfFederalLeadershipTopromotenationaleconomicdevelopmentthefederalgove

21、rnmenthashisticallysupptedcapitalspendingontransptationwaterinfrastructurethoughasthefigureshowsfundingfoperationsmaintenance(O&M)hastraditionallycomemainlyfromstatelocalgovernments.Thefederalgovernmentalsohasplayedavita

22、lroleinsupptingresearchtospurinnovationindesignconstructionmethodsmaterialsO&M.Butfdecadesnowthefederalgovernmenthaslackedavisionpriitiesfrenewingadvancinginfrastructuremostvitaltothenation’seconomy.FexampletheHighwayTru

23、stFundisnotsustainableunlesstherevenuemodelisupdatedtoaccountfchangesinfuelefficiencyautomotivetechnologies.StatelocalgovernmentshavebeenshoulderinganevergrowingshareoftheO&Mburdenaccountingf62percentofcapitalexpenditure

24、s88percentofO&Mspendingftransptationwaterinfrastructurein2014.Statelocalgovernmentsarestillinthebestpositiontomakedecisionsaboutinfrastructuremaintenancenewinitiativeswithintheirjurisdictions.Annualspendingincreasesbytra

25、nsptationwaterinfrastructureownersof2.5to3percentwouldlargelyeliminateexistingmaintenancebacklogsby2030.SowhiletheRresearchersseenoneedflargescalechangesintheprimaryrolesplayedbythefederalstatelocalgovernmentsingovernanc

26、eofinfrastructureupkeepthefederalgovernmentneedstoupdatepoliciesstepupfundingsetnewnationalregionalpriitiesfthe21stcentury.SustainingModernizingU.S.InfrastructureThroughaTargetedApproachCongresscantakesteps—inconjunction

27、withstateslocalentitiestheprivatesect—toimprovetheconditionofthenation’sinfrastructuretomeet21stcenturyneeds.TothatendtheRteamofferstenrecommendations:TAXEXEMPTBONDS:Preservethefederaltaxexemptiononinterestearnedfrommuni

28、cipalbondsfatleastthenextdecade.Taxexemptmunicipalbondsareneededtogivestatelocalgovernmentscontinuedstableaccesstocapitalwhilealternativefinancingmechanismsaredeveloped.Keymessages:?U.S.transptationwaterinfrastructurefun

29、dingfinancearenotnearlyasbrokenassomebelievebutanationalconsensusoninfrastructurepriitiesisneededaccompaniedbypolicychangesinfundingfinancing.?Annualspendingincreasesbytransptationwaterinfrastructureownersof2.5to3percent

30、wouldlargelyeliminateexistingmaintenancebacklogsby2030.?Thefederalgovernmentshouldfocusonmaintainingmodernizingvitalfederalinfrastructureontargetingnationallysignificantprojectsthatarebeyondthecapacityofindividualstatesc

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