Tuesday, September 18, 2007

Save Public Infrastructure


Government has a HUGE footprint: administrative buildings, courts, jails, schools, health facilities, transportation and roads, libraries..

Just as a parent picks up a used car for their teenager.. they inherit problems known or not.

Our buildings and public works infrastructure also come 'used' . Most government buildings are between 30 and 50 years old with unrecorded adaptions, electrical and telephone wiring, air conditioning, design modifications compromising functioning of any one system.
Ask any facility manager for blue prints, manuals, or records of large systems maintenance or repairs.

The tax diminishing tax base and growing constituent services and regulatory demands impact the ability to operate buildings that foster healthy and productive work force (also impacting the delivery of services). The first thing cut are - maintenance, staff.. things that are pretty much 'invisible' to the casual eye. For smaller communities cut budgets translate into loss of space- such as a sheriff's office.

To underscore how badly our infrastructure is today- and despite some gains- check out the American Society of Civil Engineers "report card" .
U.S. Infrastructure Crumbling, According to Report Card

Federal Agency Successes with Public Private Partnerships (P3): Any Opportunities For Local Government ?

The Federal Facilities Council presented a half day of presentations September 7th in D.C. on the theme of Public Private Partnerships and provided a number of federal agency cases that have been successfully enabled through Enhanced Utilization Leases(EUL). In one case through an EUL, an agency specified a desirable multi-use development be built on excess periphery land. After vetting private developers, a plan was chosen. The terms were such that the agency got a tranche of money and retains a revenue stream.

While discussion of P3s typically centers around toll roads and highways, the FFC program depicted 4 non-transportation related projects. Instead of selling assets such as non-utilized land or gain of excess methane gas (city dump), these assets become an additional revenue stream to support government operations.

What's With State DOT's?

'and to the Republic for which it stands, one nation under God'..

The notion that our federal government is responsible for constituent needs and services should be revisited --particularly with respect to our national highway system. America was founded as a federal republic whereby states can devise their own laws and tax systems, determine the level and thresholds for services in accordance with the federal government. Thanks to Ike, a major source of funding for our national highway system has been the National Highway Trust Fund, started at Pres. Eisenhower's suggestion to build highways for national security.

Americans have had their own love affair with the highways with states capitalizing on the returns for their constituents: business commerce and constituent quality of life in support of the tax base.

Expecting that rural and western state DOTs are equally structured, funded, have the ability to get much needed funding and operating budgets for new or existing state highway projects as states with large urban areas and industry would be wrong. Money begets money.

Then, the matter of workforce whispered throughout government: expertise retirement of intellectual capital. Not only are staffs dwindling due to retirement and budgets, but another trend whereby in the case of DOTs, on average, an administrator cycles out of his/her position after 18 months. I try to imagine pension funds administrators would be hired if their shelf life were between 12 to 18 months. No traction, not enough time to become immersed in the challenges, resolve or field future needs, not enough time to be accountable for consequences of decisions. Yet, that is the norm for state DOTs.

As state DOTs have limited responsibility for what goes on locally, what does this mean for county and local administrators?
with are boluxed with a full complement of constituent service and administrative requirements. Some state DOTS with diminishing budgets already "transferred" state highways back to local jurisdictions --a trend in the making.
If state DOTs cannot fund or manage state highways, strategic management of resources among locals must be engaged, or not- at the expense of jobs, economic competitiveness, and national safety.

The demise of the NHF is imminent. Gas tax has not increased to replenish much less meet the increased volume and breadth of highways to support our growing population. Manufacturers wisely increasing MPG, in turn also reduce tax receipts.

While the line between public responsibilities and constituent rights is often blurred as is the hierarchy of government responsibility, prioritizing investment and maintenance of public infrastructure; remedying the loss of local government's intellectual capital, capabilities and capacity may too soon hamstring the vitality of our economy.

Monday, September 17, 2007

The Beginnings of a Case Study: What's the Story with All DOT's are Not Created Equal

State DOT's have a huge mantle to bear. After decades of, for the most part, free flowing funding to build new roads, creating jobs: effectively supporting the flow of commerce-- comes the realities of diminished budgets and the anticipation of the demise of Ike's National Highway Fund.

State DOT's have begun a number of dances that may end up saddling local government with a hefty bill at the end of the evening.