Gov. Schwarzenegger Highlights Infrastructure Needs at Milken Institute Global Conference

Today, Governor Arnold Schwarzenegger discussed California's infrastructure funding needs in a conversation with Michael Milken at the 2008 Milken Institute Global Conference. Approximately 2,500 people from 60 countries are attending this year's conference to explore some of the most daunting issues of our time, including ways to upgrade our infrastructure.

"Infrastructure is the foundation for future economic growth, but for far too long California has been living off of the infrastructure investments of the past and not renewing those investments" Governor Schwarzenegger said. "The bonds approved by voters in 2006 were a huge down payment and will go a long way toward updating California's infrastructure, but more is needed to meet the demands of the state's growing population and our aging roads, schools, parks, buildings and levees."

According to Next 10, California's population is expected to increase by nearly 50 percent to about 55 million in 2050. In November 2006, California voters approved $42 billion in infrastructure bonds, championed by the Governor, to rebuild California's roads, schools, parks, levees and housing.

To address California's infrastructure gap, which the Department of Finance estimates at $500 billion over the next two decades, the Governor called for a dramatic boost in federal, private and state infrastructure investment. Specifically, the Governor:

Joined with Pennsylvania Governor Edward Rendell and New York City Mayor Michael Bloomberg earlier this year to form a new bipartisan, multi-state coalition called, "Building America's Future," to rally support for federal infrastructure investment and put pressure on presidential candidates to increase federal support of infrastructure.
Called on the federal government to increase infrastructure investment and welcomed 13 more governors from across the nation to the "Building America's Future" coalition as part of his trip to Washington, D.C. in February.
Proposed a new set of policies as part of his State of the State address to improve how California builds and finances infrastructure by enabling the broad use of Performance Based Infrastructure (PBI). These proposals include:
- Expanding the types of projects, services and government entities that can enter into PBI arrangements. PBI allows the public and private sectors to work together to deliver infrastructure services at lower cost and risk, while providing improved services for citizens.
- Increasing contracting flexibility so the state can better negotiate with potential contractors.
- Establishing "PBI California," to enable California to build, operate and maintain infrastructure better, faster and for less. "PBI California" would serve as a center for excellence to help determine which state projects can benefit from PBI, represent the state in negotiations with PBI participants, ensure transparency and monitor performance.