Municipal infrastructure development is in crisis. At a time when society is counting on infrastructure essential to the functioning of communities and commerce to get us through the pandemic and its recovery, COVID-19 has left many much-needed projects at risk in its wake.
For 2020-2022, the National League of Cities has estimated a USD360 billion budget shortfall for cities and towns nationwide. This budget climate is cancelling or delaying infrastructure improvements and innovations that are becoming increasingly greater priorities for workers, businesses, and families. These range from better Wi-Fi connectivity for a dispersed workforce to smart data solutions that optimize safety.
In recent years, P3s have emerged as a model for infrastructure funding and development. P3s fill budget holes where cities have limited options to raise revenue. They can be the engine of investment and a way to work around the limits in revenue options and address today’s multiple layers of complexity.