States Step Up On Infrastructure

Lagging in other sectors, public financing of state roads and other infrastructure services has increased.

1 minute read

March 9, 2006, 12:00 PM PST

By David Gest


"Faced with sharply emerging deficits, the states, which had assiduously lowered tax rates in the late 1990s, took the only path politically possible -- they chopped spending. Overall, states stopped expenditure growth in its tracks for a couple of years. Capital projects and maintenance were delayed. User charges and fees (such as college tuitions) surged."

"It's too early to declare springtime in Public Finance Land. But if there is a thaw, one of the beneficiaries is likely to be infrastructure."

Wednesday, March 8, 2006 in Governing

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