At a time when public finances are severely constrained but demand for improved infrastructure is growing, public-private partnerships (P3) offer an attractive alternative for financing and operating California infrastructure. While P3 methods won’t be appropriate for all projects, and clear rules and supervision are necessary, they have been extensively and successfully used by a variety of other jurisdictions in the U.S. and around the world.
California is globally recognized as the world’s leading center for technology, innovation, and entrepreneurial opportunity. While most concentrated in the San Francisco and Silicon Valley Bay Area, technology assets are spread throughout the state. The economic strength that flows from this unique capacity has produced high-value jobs and world-leading companies and puts California at the leading edge of current and emerging technologies that will transform the world’s economy in coming decades. The income that this activity generates is also a critical source of revenue for the state through personal income taxes (PIT) due to the substantial workforce dedicated to advancing technology in California. In the state’s 2019-2020 fiscal year, PIT accounted for 66.19 percent of California’s General Fund revenues, much of which are driven by taxation on technology initial public offerings (IPOs) and stock gains.
A provision in the recently passed $1.3 trillion federal Infrastructure bill requires a Value-for-Money (VfM) analyses – a key part of the P3 process – in order to receive federal funds for transportation projects above $750,000,000 financed through TIFIA (the Transportation Infrastructure Finance and Innovation Act) and Railroad Rehabilitation and Improvement and Financing Act (RRIFA).
Last month saw the opening of the newest buildings in UC Merced’s Merced 2020 Project, which when completed next year will virtually double the size of the campus and expand the number of students it …
Investment in infrastructure has one of the highest economic multipliers of any form of government spending, but due to California’s failure to invest in and maintain its infrastructure at all levels, the state is putting its future growth and prosperity at risk. There is a demonstrated need to fundamentally reform public infrastructure procurement in California and the U.S., accelerate project delivery, and drive more widespread adoption of life-cycle management approaches. The role that public-private partnerships can play in addressing California’s infrastructure needs is the primary focus of this report.
A series of Economic Institute studies published between 2006 and 2015 have assessed the potential for P3 projects in California and the conditions under which the state is likely to attract investors. Briefs, Analyses, and …