11/27/2007 GAAS:929:07 FOR IMMEDIATE RELEASE Print Version |
Gov. Schwarzenegger Highlights Public-Private Partnerships as Tool to Meet California’s Infrastructure Needs
Governor Calls for Resolution to Comprehensive Water Plan
Putting the spotlight on the economic benefits of planning for California's future, Governor Arnold Schwarzenegger today outlined his long-term plans for meeting California's infrastructure needs.
"For decades, we fell into the short-sighted habit of piecemeal investing crisis-by-crisis, traffic jam-by-traffic jam. Now we have 37 million people getting by with an infrastructure built for nearly half that number," said Governor Schwarzenegger during the keynote address at the conference on California's Digital Infrastructure organized by USC Annenberg's Center for the Digital Future. "We will be building a better California today by continuing to invest in tomorrow."
A key component of the Governor's overall economic development strategy for California is public-private partnerships, which employ capital and skills from the private sector in order to build and maintain infrastructure faster, better and cheaper while improving service. In his State of the State Address in January, the Governor will discuss more about his plans to expand the use of public-private partnerships.
"State agencies estimate that California needs $500 billion in infrastructure over the next 20 years. We will need that infrastructure delivered, operated and maintained on-time, on-budget and at the lowest risk and cost to taxpayers," said Gov. Schwarzenegger. "With private sector competition, these projects also provide better service to citizens and public sector workers alike - and now California needs to step up its game."
The Governor met this summer with newly-elected French President Nicolas Sarkozy to discuss France's use of public-private partnerships. During the Governor's trade mission to Canada in May, Governor Schwarzenegger visited a construction site for CanadaLine's rapid transit rail tunnel, which connects Vancouver's waterfront to its airport. British Columbia Premier Gordon Campbell briefed the Governor on how the government has saved significant taxpayer money and improved through public-private partnerships for major infrastructure projects.
Currently, private infrastructure funds shun California because of the overly complex and uncertain nature of its infrastructure financing laws.
To date, the Governor has proposed:
- Legislation to increase the speed and efficiency of transportation projects built with Proposition 1B funds, part of the historic infrastructure bond package approved by voters last fall.
- Current state and
local funding will reduce congestion by 11 percent. But by leveraging
Proposition 1B funds with public-private partnerships, California can achieve:
- A minimum of 14.5 percent congestion reduction.
- $17 billion in private funding to construct high occupancy/toll lanes and fund air pollution reduction projects associated with goods movement.
- Up to an additional 3.5 percent reduction in congestion and 210 highway lane-miles.
- Design-build legislation to ensure that projects using Proposition 1B bond funding can be delivered more quickly, saving taxpayers $1 billion.
- A $2 billion bond for the courts that will be leveraged with public-private partnership financing to ensure California's courthouses are well constructed, secure and properly maintained.
- A review of overall financing structure for K-12 school construction to ensure funding for school facilities is sustainable in the long run.
In addition, the Administration is studying how it can further enable professional infrastructure financing and public-private partnerships in California.
Improving California's water infrastructure also has been a top priority for the Governor for more than a year. Governor Schwarzenegger presented a plan to fix the ailing Sacramento-San Joaquin Delta, increase water conservation and add water storage and conveyance to a significantly upgraded statewide system. In September, he called the Legislature into a special session to complete work on ensuring a safe, clean and reliable water supply.
"We are working hard on a comprehensive water plan so California has all the safe, reliable water it needs for now and far into the future. Our cities, businesses and industries depend on it," said Gov. Schwarzenegger.
