The I-35 bridge collapse in Minneapolis has revealed
the ugly truth about our tendency to put off the maintenance of infrastructure.
Indeed, the American Society of Civil Engineers estimates that our basic
infrastructure needs an infusion of at least $1.5 trillion just to bring it
into “good” condition.
Not surprisingly, many are calling for more funding
to maintain our public infrastructure, including many proposals to infuse
immediate cash into repairing bridges. Raising the federal and state gas taxes
is one of the leading proposals. Unfortunately, our infrastructure needs more
than stop-gap financing. We need to ask the following questions first:
1. How did we get here?
2. Will a temporary boost in funding fix the
problem?
3. What is the right way to deal with a funding
crisis?
How the problem arose.
We don’t invest enough in our core infrastructure.
In a nutshell, that’s why bridges like the one in Minneapolis are falling down.
Building new infrastructure is expensive, complicated, takes a long time, and
is often controversial.
Compounding this problem is the political nature of
infrastructure funding. The ebb and flow of politics determines who and what
gets funding and when. Without a lobbyist in Congress, infrastructure like
roads and bridges often take a back seat. It’s all too easy to put off
maintenance until next year so that you can spend the money elsewhere this
year.
Now the deferred maintenance bill is a $300 million
annual deficit for roads, bridges, tunnels, and other infrastructure.
A temporary boost in funding won’t fix the problem.
Bridges are just the tip of the iceberg. The
transportation funding system has a bias toward underfunding infrastructure and
letting maintenance lag. A temporary infusion of cash into bridges is just a
feel-good measure. The average household in the United States pays about $214
in federal gas taxes and between $99 and $374 in state gas taxes (depending on
their state) each year. Adding to that burden to throw more money into a bad
funding system won’t help.
If we want to avoid future disasters and the other
risks associated with poor infrastructure we need to change the incentives in
the system. Our system of funding infrastructure rewards deferred maintenance,
not proactive management. States and localities that underinvest in maintenance
still get their appropriation of gas tax revenues the each year, regardless of
their decision to allow the system to deteriorate.
Proposals for a temporary federal gas tax hike to
fund bridge repairs would be a worst case scenario of rewarding bad behavior.
Residents of states that have done a good job maintaining bridges would pay the
higher gas tax, but their state would get little, if any, of the funds.
Instead, the funds would go to those states that have poor bridges, i.e. those
states that have shown they do a lousy job with their maintenance budgets. We
would be rewarding failure and punishing success. Until Congress and state
legislators base funding on results and refuse to throw good money after bad,
this problem will continue.
What is the right way to deal with a funding crisis?
A sensible approach to America’s transportation
funding crisis, just like when dealing with the family budget, is to first look
at managing your spending, then see what you can do about income. This is a
three step process.
First, what are you doing with the money now? In the
last transportation bill, individual Congressmen and Senators carved out
special funding for 6,373 pet projects amounting to over $24,215,018,641. These
“earmarks” are not subject to cost-benefit analysis or any form of
prioritization other than the political strength of politicians on Capitol
Hill. In Minneapolis, state legislators spent a great deal of the past two
years working on a special tax to pay for a new stadium for the Minnesota
Twins. They did not spend that much time debating how to pay to fix deficient
bridges.
Clearly, in the wake of the I-35 bridge collapse
Congress and state legislators need to re-examine transportation priorities and
base funding on objective needs, not politics.
Second, are we getting the most bang for the bucks
we already spend? Some states do a better job than others at providing
infrastructure. For example, a comparison of state road conditions shows that
some states do a much better job with road maintenance money than do others.
Missouri is working on a landmark public-private partnership to have all 800
bridges in the state brought up to snuff in the next five years. Several other
states have used public-private partnerships to get more maintenance out of the
same budget. Too often we say the problem is a lack of funding and the way we
do things is fine, when we should be constantly seeking to change and improve
how we maintain our transportation systems.
Third, and only third, address additional revenue.
At the federal level, Congress has created two commissions to create
recommendations for how to fund transportation in the future. We should invest
now in the first and second steps, and wait for those recommendations before
hastily increasing the gas tax.