Total net tax-supported debt (NTSD) for the 50 states was virtually unchanged in 2018, as governments maintained a cautious approach to bond issuance and increased their reliance on operating revenue for transportation infrastructure. The $523 billion in NTSD marked the eighth straight year with minimal change, putting average annual growth at 0.6% since 2011.
Source: Jennifer M. Cavallari, Katrina A. Burch, Jeffrey Hanrahan, Jennifer L. Garza, Alicia G. Dugan, American Journal of Industrial Medicine, Early View, First published: May 19, 2019
From the abstract:
It is important to understand workplace factors including safety climate that influence hearing protection device (HPD) use. We sought to investigate the association between HPD use, safety climate, and hearing climate, a new measure specific to hearing.
A survey was developed and distributed among transportation “maintainers” who perform road maintenance and repair. A new hearing climate measure was designed by adapting a safety climate measure. HPD use was assessed by asking workers how often they wear HPD while in noise. The differences in safety climate and hearing climate were compared by the frequency of HPD use using analysis of variance.
Among 166 maintainers, 54% reported always or almost always wearing HPD while noise exposed. High‐frequency HPD users reported a statistically significant higher safety climate (P = 0.004) and hearing climate (P = 0.003).
Hearing climate predicts the frequency of HPD use and may be a useful measure when assessing and improving hearing conservation programs.
….Indeed, miserable conditions like these are not only hard on the children. They seriously impair school districts’ ability to retain their most valuable asset – their teachers. Teachers leave their jobs for a variety of reasons, but facility quality is a key factor.
Addressing the infrastructure needs of America’s public schools will be costly. However, continuing to ignore them would be even more costly. The educational impact of substandard facilities on students cannot be overstated…..
….Funding for public education, including school facilities, is primarily a state and local matter. But while most states have tried to help poor local districts with basic operating expenses – such as paying teachers and buying supplies and materials – state support for school infrastructure has been much less reliable.
Shrinking cities are losing a good chunk of their populations, yet must still find a way to update infrastructure. How can updates to essential services like water lines be funded and maintained despite large declines in residency?
…. To fix the potholes and crumbling roads, federal, state and local governments rely on fuel taxes, which raise more than US$80 billion a year and pay for around three-quarters of what the U.S. spends on building new roads and maintaining them. ….
….If sales continue at this breakneck pace, electric cars will become mainstream in no time. In addition, governments in Europe and China are actively steering consumers away from fossil fuels and toward their electric counterparts.
In other words, the time will come very soon when the U.S. and individual states will no longer be able to rely on fuel taxes to mend American roads…..
Source: S&P Global Ratings, January 17, 2019
S&P Global Ratings’ 2019 outlook for business conditions and credit quality across most U.S. public transportation infrastructure sectors, including airports, ports, federal grant-secured, and parking, is stable. We are maintaining our positive outlook for the toll road and bridge sector and revising our outlook for the mass transit sector to negative from stable.
Two primary drivers critically impacting both budgetary considerations and public policy processes for the foreseeable future regardless of revenue and service selection are pension liabilities and infrastructure. One tends to be historical in context while the other is futuristic in its scope. Both pension liabilities and infrastructure face headwinds. Both issues transcend interest groups. Both issues potentially advocate fairness and social equity across a broader spectrum of citizens arguably more so than others.
In this continuing series of articles exploring public infrastructure, the combination of unfunded liabilities for both public pension funds (estimates range from US$1-$3 trillion) and infrastructure (estimates ranging from US$1-$5 trillion) conjure up public policy and financial dilemmas constraining even effective discourse. Over the long-term, as difficult as it is to imagine, maybe one unfunded liability poses an opportunity to resolve the other unfunded liability. Can infrastructure be an elixir for long-term pension liabilities? ….
Source: CRS In Focus, November 19, 2018
The condition and performance of infrastructure are generally thought to be important for the nation’s health, welfare, and economy. More contentious are the optimal level of infrastructure investment, the effectiveness of this investment, and the appropriate role of the federal government. The current federal role in infrastructure investment is important but limited in size and scope.
Source: Maria Matesanz, Eriq Alexander, Kurt Krummenacker, Moody’s, Sector In-Depth, July 17, 2018
Large road systems will experience more stable traffic and revenue trends in a recession than smaller or less well established systems, based on our analysis of their performance during and after the last recession. From a financial and operational standpoint, we expect larger toll roads to maintain steady traffic growth and performance with minimal negative credit effects associated with typical traffic and toll revenue drops seen during recessions. We define large, established toll roads as those that operate multiple assets and have been in operation more than 15 years….
The Water Infrastructure Finance and Innovation Act (WIFIA) program provides financial assistance for water infrastructure projects, including projects to build and upgrade wastewater and drinking water treatment systems. Congress established the WIFIA program in the Water Resources Reform and Development Act of 2014 (WRRDA 2014, P.L. 113-121).
The WIFIA concept is modeled after a similar program that finances transportation projects, the Transportation Infrastructure Finance and Innovation Act (TIFIA) program. Proponents of the WIFIA approach, including water utility organizations, cite several potential benefits
• WIFIA provides credit assistance to large water infrastructure projects that may otherwise have difficulty obtaining financing.
• WIFIA provides credit assistance, namely direct loans, at U.S. Treasury rates, potentially lowering the cost of capital for borrowers.
• WIFIA assistance has less of a federal budgetary effect than conventional project grants that are not repaid, because only the subsidy cost of a loan (representing the presumed default rate on loans) is required to be appropriated.
• WIFIA support limits the federal government’s exposure to default, because projects must be found creditworthy with a revenue stream for repayment to be eligible for assistance.
On the other hand, opponents of the WIFIA approach, including organizations that represent state environmental agency officials, have cited several concerns
• Federal funding for a WIFIA program could have a detrimental effect on federal support for established State Revolving Fund (SRF) programs that provide the largest source of water infrastructure assistance today.
• If WIFIA funding resulted in a decrease in SRF assistance, smaller projects may face financing challenges.
• The Congressional Budget Office has warned that the future costs of a WIFIA program to the federal budget may be underestimated.