SMART Infrastructure: Financing
Identifying New Financing Tools for Infrastructure Projects
An infrastructure crisis is looming at the national, state and local levels. California faces a ten-year, $765 billion infrastructure deficit, $500 billion of which is in transportation. State resources alone cannot fill this gap, and both state and local governments lack adequate tools to address it. To remain globally competitive and to attract investment that will support growth and job creation, California needs new and innovative financing tools.
Goal of SMART Infrastructure: Financing
1) Increase innovation and competitiveness by delivering 21st-century infrastructure for California businesses and citizens. Develop new procurement processes and financing tools to enable accelerated project development, supporting job creation and environmental goals.
2) Address state-level bottlenecks and provide cities, counties and regions with more investment options and increased policy flexibility.
Goals for the Year
Progress update - September 1, 2015
Private Finance Initiative
Convene a small, high-level advisory group of knowledgeable professionals to evaluate the alternative management frameworks for the center of expertise, including the feasibility of a 501c3 or LLC.
September 24, 2013
- The Summit has created a 2013 Infrastructure Action Team that has approved a charter
that will expand on last yearâ€™s Summit proposals by focusing on building a comprehensive infrastructure investment strategy for the stateâ€”one that improves performance, builds public confidence, accesses adequate revenue, and provides state and local entities with the tools they need to leverage private investment. The Teamâ€™s Action Plan will be released in early October. The Team has also created an online infrastructure hub
featuring stories and videos on how the state can tackle its infrastructure challenge.
April 1, 2013
- With the governor's office poised to release a new state 5-year infrastructure plan, the Summit's spring forums
will provide regional leaders an opportunity to discuss who they believe should have responsibility for different kinds of projects (i.e. at the state, regional, or local level), as well as the best financing tools. Infrastructure is also currently an important component of the larger economic vitality plan proposed in AB 53
, a bill authored by Assembly Speaker John PÃ©rez.
September 14, 2012
- At the request of Michael Rossi, Senior Advisor for Jobs and Business Development in the Governor's Office, the SMART Infrastructure Action Team has submitted a white paper to the Governorâ€™s Office on creating a center for expertise to increase private financing of infrastructure. The was prepared by members Peter Luchetti, Table Rock Capital, Lenny Mendonca, Laura Tyson, and Sean Randolph.
July 3, 2012
- With the support of Action Team members, the California Infrastructure and Economic Development Bank, a major source of financing for public infrastructure and private development, was incorporated into GO-Biz, the Governorâ€™s Office of Business and Economic Development.
Ask the Public Infrastructure Advisory Committee (PIAC) to review recommendations.
Public-Finance and Regional Flexibility Initiative
Give local governments the ability to enact, extend, or increase special taxes to fund local transportation projects with 55 percent voter approval.
Implement the recommendations of the LAO to strengthen the state fuel-tax system as a source of transportation funding by transitioning the current per-gallon gas tax to a mileage and vehicle weight-based tax/fee.
Where appropriate, adopt demand management techniques or user fees for state infrastructure to encourage efficient resource use, conservation, and cost savings.