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Chicago Mayor Rahm Emanuel in Washington, DC on July 20 discussed both the connection between job creation and critical infrastructure investment and innovative ways urban centers nationwide can support this kind of investment in times of economic difficulties and decreased public spending. He focused on the new Chicago Infrastructure Trust, the first public-private financing model for infrastructure investments—including support for an overburdened transportation system—in the country.
Support for Chicago Plan
“We support the Emanuel Administration’s emphasis on investing in Chicago’s urban infrastructure as well as looking outside the box to leverage private financing for these projects," said Philadelphia Mayor Michael Nutter, who serves as president of the U.S. Conference of Mayors (USCM). “In this era of tight budgets, mayors across the country are looking for new ways to keep their urban infrastructure from crumbling through smart and strategic investments that increase economic growth and job creation as well as keep cities modern.”
U.S. Conference of Mayors’ Report
While the nation’s cities and their metropolitan areas continue to make steady progress toward economic recovery, USCM notes that there is a downside should cities not increase their investment in transportation infrastructure. According to U.S. Metro Economies Outlook: Gross Metropolitan Product, and Critical Role of Transportation Infrastructure, a new USCM report, this lack of investment could lead to skyrocketing costs to families, commuters, and businesses, potentially doubling over the next decade.
The report examines the likely impact of population increases, employment growth, export expansion, and economic output on metropolitan areas. It forecasts that, by the end of this year, 300 of the nation’s 363 metro areas will experience real economic growth (gross metro product), and predicts a nationwide employment increase of 1.4 percent and a real Gross Domestic Product (GDP) growth of 2.0 percent over the remainder of the year.
“This report clearly shows that economic recovery is improving slowly, but surely,” said Nutter.
However, the report also projects growth in U.S. metropolitan areas over the next 30 years that the current system of infrastructure will not be able to absorb. It points to a 32 percent growth in U.S. metro areas—almost 84 million people—over that period. More specifically, it lists 59 metro areas likely to see population increases of more than 50 percent, 21 that may see 75 percent growth; and three whose populations will more than double.
During their recent Summer Leadership Meeting, mayors argued that failure to dramatically expand U.S. infrastructure may threaten the nation’s global competitiveness and future economic growth. For example, transportation and water infrastructure funding account for only 2.4 percent of U.S. GDP in recent years, compared with 5 percent in Europe and 9 percent in China.
The complete text of the report is available here. |
