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.
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 …