California still faces a daunting backlog of infrastructure projects that need attention – from updating our aging water delivery system to fixing dilapidated classrooms in schools to meeting our growing infrastructure and housing needs.
It is imperative we preserve viable options for funding projects. Ramping up California’s use of public-private partnerships (P3) to tackle a number of these critical projects is an efficient use of taxpayer money that can deliver projects on time and on budget.
Infrastructure investment can play a strong role in job creation and economic development for California. A 2012 report by the Bay Area Council Economic Institute estimates that every $1 billion in infrastructure investment creates approximately 13,500 jobs.
That same report estimates that a successful public-private partnership project typically results in a 15% to 30% life-cycle cost savings. P3 projects most often have a faster procurement process, putting projects on a stable and efficient timetable, and such partnerships demonstrate a responsibility to the taxpayer by appropriately transferring risk to the private partner.
Despite recent investments, the state’s infrastructure remains critically underfunded and inadequate. California must continue to promote the P3 project delivery method to ensure that the public has every tool available for funding and executing projects efficiently and responsibly.