Invest in Transportation and Other Infrastructure

Transportation investments are a great economic stimulus because they have a high jobs multiplier effect and create value for the economy over the long-term. Transportation projects involve skill sets across the entire spectrum of the labor force, from unskilled labor to building trades, professional finance and architects, and numerous suppliers and subcontractors. Most transportation projects also have a long duration, so the benefits spill over into housing investment, school systems, restaurants and many other associated businesses. These jobs are largely union, well-paid and encourage the building blocks of good community life. The American Association of State Highway and Transportation Officials estimates 35,000 jobs are created for every $1 billion spent on transportation projects.

Last year the Oregon legislature passed the Jobs and Transportation Act of 2009 which is expected to create 4,000 jobs per year over the next 10 years. This was a good start and this effort needs to be accelerated and expanded. We also need to ensure that we not only invest in our base highway system, but also address light rail, freight, marine and jetties, air and multi-model transportation needs. At the same time, transportation investments need to be preceded by careful planning which anticipates and advances Oregon’s environmental and community development objectives, rather than relying on expensive projects to reduce congestion after growth has occurred. Furthermore, we need to build our transportation infrastructure based on the energy, environmental and demographic conditions of the future, not the past. Finally, all transportation and infrastructure investments should be targeted towards projects that provide the most jobs now and the greatest long-term benefits for Oregon’s economy.

Oregon should work with its federal delegation to channel more stimulus dollars to infrastructure. Oregon has a major opportunity during re-authorization of the federal highway bill because Representative Peter DeFazio is Chairman of the Subcommittee writing the bill. It is imperative that we work with Congressman DeFazio and other members of Congress for action on this bill in 2010.

The jobs benefits of transportation investments also apply to other infrastructure investments, especially energy and water and wastewater infrastructure. Oregon has a special opportunity to use Federal funds for “smart” power grids to become a leader in this area. Federal funds and funds from utilities are available to expand our transmission grid to get wind energy from the eastern part of the state where it’s generated to the west where it’s most needed. The key barriers for transmission investments are not dollars, but planning and regulatory hurdles. Some federal officials, including Representative Earl Blumenauer, are working on creating a federal “infrastructure bank” to help finance infrastructure projects. Oregon business and elected leaders should do everything in their power to support these efforts.