Governor Joins Gov. Rendell and Mayor Bloomberg to Reinvigorate Federal Investment in Infrastructure

GOV. SCHWARZENEGGER: Well, good morning, everybody. And I would like first of all to say thank you all for coming out here today, especially Secretary Dale Bonner for being here today. And then also Judith Rodin of the Rockefeller Foundation, we want to thank her for being here, and also Mayor Bloomberg, thank you. And Governor Rendell, thank you very much for being here today.

As you know, I'm very passionate about infrastructure. As a matter of fact, since I came into office I've been talking continuously about the importance of rebuilding California and investing in the future of California. And we were very successful that in 2006 the legislators approved 37 billion dollars of infrastructure bonds in California to rebuild our transportation system and also to rebuild our schools, to expand our university system, build affordable housing, and to fix our levees once and for all. And the people then approved the 37 billion dollars of bonds and an additional 5 billion dollars for water projects.

But the problem is that we need all of this all over the United States, all over America. And so we have not only a governor here in California that is a big believer in infrastructure, but we also have Mayor Bloomberg and Governor Rendell that have been extraordinary leaders, that have been visionaries, and they have been very effective leaders, the best in America, when it comes to infrastructure. And so we all got together and we decided that we should form a partnership, that we'd form a coalition. I mean, you have an Independent here, you have a Democrat here, a Republican. I mean, how much better can you get? And we are soul mates. We totally believe that we must rebuild America.

I think that both of those leaders have done an extraordinary job. Like for instance, Mayor Bloomberg invested almost 3 billion dollars in bridge inspection, maintenance and reconstruction in New York, and the Mayor has funded 2 billion dollars of subway extensions and critical upgrades in the city's water system and waste water system. He also announced a 25-year plan to invest billions of dollars in long-term infrastructure in New York, including transportation, energy and water systems, and so on.

Governor Rendell is also a great leader, like I said. He has increased the spending and investing by 33 percent in his state. He has pushed public-private partnerships to generate more capital and build more projects, and he's working on port improvements, and has signed legislation that will provide an average of a billion dollars a year over the next 10 years for transportation projects.

So as you can see, we all are serious about that. We don't just talk about infrastructure, we actually do it, because we believe very strongly in investing in the future. And we have to do the same in America. There is no reason that people have to die because of the lack of infrastructure. For instance, if you think about Katrina, New Orleans, it was a lack of infrastructure that wiped out this city and caused so many deaths and injuries and so on. I think we have seen it again on August 1st in 2007 when the bridge collapsed over the Mississippi River in Minneapolis and killed 13 people and injured hundreds of people. Those are the kinds of things that will happen all over America if we don't take care of our infrastructure. It's very clear that the American Society of Civil Engineers gave the U.S. infrastructure a grade of a D in 2005, and said that we have "fallen woefully behind". We need to go and start investing in the future of California.

Now, there are a lot of different projects that are needed:

·   116 billion dollars annually to maintain and upgrade our nation's roads and bridges,
·   12 to 13 billion dollars per year to reduce chokepoints and delays in our freight-rail system,
·   10 to 15 billion dollars annually to modernize the nation's air traffic control system and to maintain upgraded airport capacity,
·   21 billion dollars per year to maintain and expand America's transit system,
·   10 to 20 billion dollars each year to replace aging drinking water facilities and meet new federal safe drinking water standards,
·   And 20 billion dollars annually to replace aging waste water systems and construct new ones.

The bottom line is that America right now needs 1.6 trillion dollars to rebuild and to really invest in the future. We have declined our investment by an enormous amount, from 3.6 percent of GDP to 2.7 percent of GDP. We must get going, we must invest. I think it is very important that we take this seriously. This is why we formed this coalition, to put the spotlight on this issue nationwide.

And I want to thank again all of the people that are up here with me, and that are my partners, to go and form this coalition and to work on this together. I think if we build our infrastructure it is important for economic growth, it is important for quality of life, and it's very important for us to be competitive on a global level.

So with that I say thank you very much, and now I want to hand the microphone over to another great leader here, Governor Ed Rendell. Thank you.

GOV. RENDELL: Good morning, everyone. It's a real honor to be here with Governor Schwarzenegger and Mayor Bloomberg to launch the Build America's Future Coalition. Ten years ago, when I was mayor of the City of Philadelphia, I was also the chair of a collation called Rebuild America. In that capacity, we tried to focus the nation's attention on the deplorable state of the American infrastructure and the need for us to do something significant about it at the federal level.

We commissioned Frank Luntz, a noted Republican pollster to do a poll to see if Americans were willing to invest in their future, and by margins of over 2 to 1, Americans indicated that they'd be willing to invest in the future, to build better and more efficient and effective infrastructure. I testified before many Congressional hearings, and President Clinton's commission on a federal capital budget as a way of financing infrastructure.

But despite the good work that Rebuild America did, today, 10 years later, nothing has changed. In fact, we've fallen farther behind. And that is why myself, Mayor Bloomberg, Governor Schwarzenegger, feel there is a need to refocus our energy towards convincing this country, its people and the federal government, that we need a massive commitment to rebuild America's infrastructure and to create a bright future for our citizens.

Our coalition is going to be made up of literally hundreds of local and state government officials and leaders. It's going to include private sector associations and individuals, and it is going to go everywhere to beat the drum for infrastructure for America's future. And when we say 'infrastructure', obviously we're talking about roads and bridges and transportation infrastructure, including passenger rail and rail freight, but we're talking about water systems, sewer systems, we're talking about airports, ports, so many different things, schools, as the Governor said. Those are all in our definition of infrastructure.

And the reason I think that we are three good people to lead this coalition is not just, as Governor Schwarzenegger said, that we represent parts of the political spectrum, but each and every one of us has made a significant commitment in our own jurisdiction to rebuilding our infrastructure. You know, 75 percent of the dollars that America spends on rebuilding its infrastructure come from state and local government.

In Pennsylvania we have, as the Governor said, made tremendous investments. We've doubled the money for our airports and our rail freight. We have increased -- six weeks before Minnesota, I signed a bill that put a billion dollars a year extra into rebuilding our mass transit and transportation infrastructure. And when I became governor, Pennsylvania led the nation in the number of structurally deficient bridges -- over 5,500. I have tripled the funding for bridge repair in my five years as governor, and yet today we have 6,000 structurally deficient bridges. Pennsylvania alone has an 80 billion dollar infrastructure gap. That's what we would need to put all aspects of our infrastructure, transportation, water and sewer, to modern, efficient status -- 80 billion dollars in one state alone.

As the Governor said, in the last 20 years the federal commitment to infrastructure has been halved. It hasn't increased as it should have; it's been halved. We spend a little more than .5 percent of our GDP on infrastructure today. 20 years ago we spent well over 1 percent of our GDP on infrastructure. And compare that to our competitor nations, whether the developing nations like China and India, or the developed nations like Germany, France and Spain. Those nations outspend us in percentage of GDP 6 to 20 times. China spends 9 percent of its GDP on infrastructure, Spain, 10 percent. So we need a more significant federal commitment.

Now our goals, as Governor Schwarzenegger said, are No. 1, to help our economy, first and foremost, in goods movement. The quality of the goods we produce and the technology we produce is important. But how quickly and efficiently we move those goods will determine our place in the global marketplace. I ask you to look at that chart over to the right. That chart depicts the 10 largest ports in China and the 10 largest ports in America. You will see the 10 largest ports in China handle 3 times the tonnage of the 10 largest ports in America. Only 1 port, the combined Port of Los Angeles and Long Beach, comes close to the major Chinese ports in tonnage. We have to do it for our economy.

Secondly -- and the Mayor will talk more about this -- infrastructure is a great way to promote a strong and robust economy. Think about the ports. I hope to add Philadelphia to that list of the 10 top ports. We have a lot of open space that will lead us to be a real competitor of the container ship business. We can triple the amount of longshoremen, add 10,000 more longshoremen to our workforce. And those are blue color jobs -- you don't have to go to college -- that pay 70,000 to 80,000 dollars a year.

And think for a minute, as we stand here looking at all these freeways. If America built a passenger rail system, a true high-speed passenger rail system that connected every American city within 500 miles of each other, think of what that would do in terms of just job creation itself. Think of the jobs it would take to build and construct and maintain that system.

So infrastructure means jobs, but it means more than just that. As Governor Schwarzenegger said, it means environmental sustainability. When we build that passenger rail system we're taking off thousands of carbon producing and emitting cars. When we build up our rail freight, we are taking away hundreds and hundreds of trucks that pollute our atmosphere. We can conserve money, save money, conserve energy, and build a better environmental future.

And that's one of the goals of the coalition; not just to spur infrastructure spending, but make that spending smart spending, spending that recognizes that climate change is here to stay, and as we build a new American infrastructure we have to take that into account.

Now, what does the coalition intend to do? We're going to try to bring infrastructure high up on the national radar screen, high up on the national consciousness, starting with this presidential campaign. In July of this year I take over as the chair of the National Governors Association, and with Governor Schwarzenegger's help, we the governors are going to focus attention like a laser on infrastructure. This coalition is going to demand that the presidential nominees tell us what their position on infrastructure is, talk to us about what their goals and dreams are for building a better American infrastructure.

Then secondly, in 2009 we intend to lead a coalition to look at the issues that are confronting this nation and the reauthorization of ISTEA. That will be the first big test for how well we are doing our job.

But we want to do far more than that. We want to build America's infrastructure for not just the next 5 years or 10 years, but for the next century. And to do that, we obviously understand that we have to look at financing. And as a coalition, we want to be a think tank, a place where all of the best practices get examined.

We want to look at a federal capital budget. Do you realize we pay for our infrastructure, long-lived assets that will last 50 years, the same way we buy paperclips in the federal government? The federal government is the only governmental subdivision in this country that doesn't have a capital budget. We're going to look at that and see if that's a way to solve some of the long-term financing needs for infrastructure.

So this coalition is going to do a lot. It's going to be a great advocacy group, it's going to be a great repository for all of the best ideas, not just from around America, but from around the world.

And one of the leaders of this coalition is the great mayor of the city of New York. Mike Bloomberg has helped New York meet its challenges in ways that surpass the imagination of even the most optimistic New Yorkers, and nowhere has his leadership, his commitment, his refusal to take no for an answer, nowhere has that been demonstrated better than in the field of infrastructure. Mayor?

MAYOR BLOOMBERG: Ed, thank you. And Governor Rendell, Governor Schwarzenegger, and Judith Rodin, it is great to be with you.

Ed, I should mention that Arnold and I agree on many things, including the fact that the Super Bowl is going to be between the Giants and the Chargers. And I just wanted to know, where are the Eagles and the Steelers this year?

GOV. RENDELL: On the golf course.

MAYOR BLOOMBERG: On the golf course.

Let's talk about something more serious; infrastructure. Infrastructure isn't sexy or glamorous, and it doesn't make for great headlines, we all know that. But it is one of the most important issues facing our country. And make no mistake about it, we have an infrastructure crisis. Nonstop television showed us in New Orleans when the levees broke, and Minneapolis when the bridge collapsed. But the governors and the mayors of this country every day see at an operational level bridges that are rusting away, and tracks that can't carry high speed trains, and power transmission lines that can't keep up with demand, and airports that need new runways, and water lines that need backup systems, and sewage plants that leak into the rivers and the oceans. If we continue to ignore these problems we are going to suffer more collapses, more human tragedies, and more economic pain, and that's just in the short term. Over the long run we really are going to risk losing our place as the world's leading super power.

Last month when I was in China, meeting with business and environmental leaders to talk about the economy and the environment, I landed at the airport outside of Shanghai, and I rode the high-speed train into the city. It travels at a top speed of 267 miles per hour. Now, we don't have anything like that in the United States, but business leaders increasingly expect this kind of easy access to central business districts. China has also built an airport terminal in Beijing that is larger than all the airport terminals at New York Kennedy Airport combined.

One of the big reasons that more and more flights are getting delayed in the U.S. at all of our airports is that we're not investing in new runways and technology that would prevent flights from getting backed up. This country needs about 70 billion dollars in new airport infrastructure over the next couple years. But surprise, surprise; Washington doesn't have a plan for it.

We need about 185 billion dollars in road and maintenance work, but there's no plan for that either. Our economy gets strangled when suppliers, customers and employees just can't get there, and there's no plan for fixing it.

China, Japan, India, Dubai, Malaysia, Europe, all of them are investing in modern infrastructure at higher rates that we are here in the United States. But Congress is setting back and resting on its accomplishments of past generations, our parents' generation. And they can only go on this way for so long before the rest of the world starts to pass us by. And we are here to say we cannot let that happen. We cannot hand our children a country that is crumbling from neglect.

Now, the problem we face has two parts; we under-invest in infrastructure, and we invest badly. And both problems spring from the same source; short-term political calculations. It's not an accident that monies are too rarely spent on projects delivered after the legislator retires. In politics, winning elections and protecting a party majority is more important than solving problems, and so short-term pork invariably wins over long-term investing, and special interests win over the rest of us. If we don't put the customer first, if we don't make smart long-term investments, we're not going to succeed. But Washington, as you know, spends money to win votes and collect campaign cash no matter what the real needs are, and that's why they fund roads to nowhere and bridges to nowhere, and highways that states don't even want.

You can't make this stuff up, but it's real, and it's hurting our country. We need a new independent approach to infrastructure, one that weighs projects based on merit, not on politics, and we need a new national commitment to funding these important projects.

Now, the good news is that the timing couldn't be better. Right now, as you know, there's a lot of talk in Washington about putting together an economic stimulus package. Of course, most of the talk is around short-term spending instead of long-term investing. But remember, the public works of the New Deal didn't just create jobs. They built a foundation that allowed America to experience unprecedented growth in the 1940s and '50s and '60s. And we can do the same thing now, but we can't do it without pushing Washington into action, and that's why we are here.

Cities and states have substantially increased spending on infrastructure, as Ed talked about in Pennsylvania, and as the Governor has done here in California. But federal spending has been flat, and so across the country mayors and governors face growing gaps between the need and what the local taxpayers can afford.

In New York City we developed a long-term plan to invest in all of our critical infrastructure, including our transportation, energy and water systems. And we identified a 30 billion dollar funding gap over the next 25 years in just one area, and that is transportation. To begin closing that gap, to begin reducing traffic congestion that is hurting our economy, as you know, we proposed a system of congestion pricing. The political insiders in New York thought it was dead on arrival; the public said it would never fly. But as usual, the public turned out to be smarter than everybody. And when they understood that the monies from that would go to mass transit, the public has gotten around to supporting congestion pricing.

And I think the problem is that it isn't that the people aren't willing to pay; it's that the elected officials aren't willing to ask them to stand up. They aren't willing to explain to them what needs to be done, and to tell them that we're all going to have to pay if we're all going to succeed. And so if the elected officials won't do it elsewhere, it's the governors and mayors of the states and the cities in this country are going to get together, away from the legislators, and try to pull everybody together. And then we're going to, with everybody, convince Congress that there has to be a better way.

Now, this week a Congressional commission issued a report describing how bad the situation was, and there are number of good ideas in there, and some solutions, including a bipartisan one supported by Senators Chuck Hagle and Chris Dodd. We're not here to advocate for any one particular solution or proposal, but we are here to say we need independent, nonpartisan solutions that increase our investment and ensure that it's not wasted on political pork.

Governor Rendell has been a great champion of this issue for years, as you know. Governor Schwarzenegger's infrastructure legacy, I think, is going to be just as big as his environmental legacy, and that's really saying something. So I really am honored to be invited to join with both of them. I've always believed the best way to get things done is by taking an independent approach, one that brings together people from all sides, and I think this is a great example. Democrats can say that investing in infrastructure is in the great tradition of Franklin Delano Roosevelt, and Republicans can say it's in the great tradition of Dwight D. Eisenhower. I think it is in the great tradition of America, and if both parties want to take credit for it, I think that's great. Let's just get the job done.

And now let me turn the podium over to someone who really does know the importance of infrastructure, what makes cities work as well as anyone. She used to be the President of the University of Pennsylvania and Philadelphia. I'm glad to say that now she is the President of the Rockefeller Foundation in New York City. Sorry, Ed, she's ours now. And seriously, I just want to thank the Rockefeller Foundation and Judith Rodin for committing real resources to this initiative, and for joining us today. Judith?

JUDITH RODIN: I'm delighted to be here, thank you very much, Mr. Mayor. This is an extraordinary moment, a moment when the Rockefeller Foundation is really proud to join this crucial effort and to provide the funding to seek and implement and model nonpartisan solutions for our national transportation and infrastructure crisis.

A few years ago, the Rockefeller foundation funded the hurricane recovery planning process in New Orleans, and so we saw deeply and personally what happens when infrastructure and transportation fail. Lives are lost, vast amounts of property are damaged, elected officials are held in account. All of this was after the fact. We've seen now the need for robust advanced planning, and much more focused attention on investments and infrastructure and transportation. We can no longer rely on FEMA and the federal government to solve our infrastructure disasters after the fact.

As the Mayor will tell you, and has told you, the Rockefeller Foundation and the City of New York has done a number of things together, most recently a housing design competition that seeks innovative plans for sheltering New Yorkers in the aftermath of a disaster. But we believe in, and now you are seeing, the beginning of a broader national approach. And that's why we're funding this investment, because we believe that wonderful things happen when the public and private sector work together, when governments and foundations and NGOs come together for a common purpose.

A generation ago Dr. Martin Luther King Jr. said that we're all tied together in an "inescapable web of mutuality". As we observe the 79th anniversary of Dr. King's birth this week and the national holiday on Monday, these words never have rung more true. Globalization is really the inescapable mutuality of the 21st century, and we're seeing so many changes in the world today. The Rockefeller Foundation supports efforts to ensure that more people will share in globalization's benefits. We work around the world, but in America we work on housing, on transportation, economic security and urban revitalization challenges, not only because these are distinctly American problems -- they of course are not -- but because so many of the problems that Americans face today emerge from the consequences and trends of globalization. Infrastructure challenges and opportunities are at the nexus of some of the most important issues we face as a nation; homeland security, the environment, the economy, and greater opportunity for all our citizens.

·   First, it is very clear that our aging and insufficient infrastructure makes us frighteningly vulnerable to natural and to manmade disasters. We can do better; we must do better.

·   Second, as the Governors and Mayor articulated, continuing environmental degradation and climate change are inextricably linked with the choices we make, not just about the roads we build or the railways we need, but about land use and zoning and housing.

·   Third, we are living now in a country where gas prices keep going up while bridges and roads are coming down, where maintenance needs rise as all of our fungible dollars decline.

·   But finally, and the main reason why I am here today, smart transportation and infrastructure policy is also about expanding access and opportunity for all Americans, about moving more people to good schools and well paying jobs, and diverse and vibrant markets.

As we celebrate the life and legacy of Dr. King this week, we should remember that the civil rights movement started on a city bus; it centered on equal access to transportation. For low and middle income Americans today, transportation and housing makes up more than half of their daily expenses, often exceeding 60 percent. And the less income an American person or family takes in, the greater percentage of their income goes to transportation.

And while I'm quoting numbers, I want you to remember three more numbers; the numbers 1, 2, and 3. For the last several decades the United States population has grown at 1 percent a year, the number of vehicles on our roads has grown about 2 percent a year, and the total mileage traveled by cars has increased almost 3 percent a year. So a static number of people in the United States are buying more cars and traveling further distances with increasingly negative outcomes for our climate, our health, and our community.

If only the solutions were as simple as 1, 2, and 3. But if we don't adequately plan and prepare for even greater increase, the costs and consequences will overwhelm us all. I think today represents a really critical mile marker in our efforts to collaborate, to come together to meet and to master the challenges ahead. This is an issue, as you see, of deep bipartisan concern. The leaders assembled today are going to take this forward, because they believe, as does the Rockefeller Foundation, that we have got to find and forge a smarter, safer and healthier path, a path that leads more families and communities to realize the enduring promise of our inescapable mutuality.

Again, thank you all for coming. My colleagues and I are very proud to support this work.

GOV. SCHWARZENEGGER: Any questions about that? If we can hear your questions, that is.

Q: Yes. This one is for Governor Schwarzenegger, Mayor Bloomberg. How do you answer those that, given both of your records in killer fiscal austerity policies, would just say that this infrastructure initiative is another form of Mussolini corporatism?

GOV. SCHWARZENEGGER: Well first of all, let me just say, whatever you call it, the bottom line is that we need to build the infrastructure, because you have heard all the arguments. It has so many different levels of why we need it, if it is because we have to move goods and people around, which is true economic power. It is very important that we protect our environment. The faster our traffic moves the more we can protect the environment. Bumper to bumper traffic creates twice the amount of greenhouse gases, we know that.

And it's also protecting the people of California and protecting the people of the United States, because we see now with the levees in New Orleans, you can come up with all your philosophies you want, but people died in New Orleans because of a lack of infrastructure and investing in the future of that place. The same happened in Minneapolis, the bridge collapsing. What do we want to do, wait for all of those bridges to collapse, wait for people to die in order to get the message?

I think we got the message, that we must rebuild America, we must invest in America, and that is the bottom line. And there are many ways of different way of doing it, through public projects, public-private partnerships and all those kinds of things, and that's the direction we have to go. Mayor?

MAYOR BLOOMBERG: I would just add that you need hospitals that are wearing out to be rebuilt, otherwise we can't provide medical care. We need to redo our school system buildings, or the teachers don't have a place to teach. If we don't give people the skills they need to have a career, they're not going to be able to feed themselves.

Infrastructure is the most populist thing you can do. Everybody benefits from all of the infrastructure, whether it is roads or airports, or railroads, in the case of transportation, whether it is sewage systems and water systems, whether it is clean air. We all breathe, we all drink, we all do the same things and have to get around. This is something that has to be put at the top of the list.

The difficulty is that the three of us can be at the groundbreaking, but for most of these projects, we're not going to be there at the ribbon cutting. And that's the disconnect that gets so many elected officials unwilling to make commitments for long-term projects. And almost by definition, most infrastructure is long term.

Q: Governor Schwarzenegger, you're very close to John McCain. Are you holding off endorsing him because you think Mayor Bloomberg might run?

GOV. SCHWARZENEGGER: Good try. I respect all of the candidates in the Republican lineup, and of course I have my preferences. I don't get involved in that. I said I will not endorse anybody. I think it doesn't help me any, it doesn't help the State of California any, to go and endorse anybody.

I'm looking forward to having all of the candidates come out here, Democratic candidates and Republican candidates. And our wish of bringing everyone out and having California be an important part of the decision making process has become very successful, because people first said it wouldn't help any if we moved the date of our election from June to February, but now we can see they're all coming out here, we will have debates out here. It's going to be fantastic for the State of California. I will not endorse anybody, no.

Q: Thank you for the opportunity. I'm from Chinese Daily News. I want to know, governors and the mayor, what do you think of the China versus U.S. port capacity? Do you think it's a threat, or an inspiration? What do you think you can learn from China?

GOV. RENDELL: Well, I put those figures up there as a sense of admiration for what the Chinese have done. China understands the importance of infrastructure, that it's going to become a true economic force in this world -- and of course it's really becoming that right now -- and they're not stopping. And one of the things that we have to understand is if we're going to have a good economy back home, if people are going to get good jobs, and the American capital investment system is going to continue to grow, we're going to need to compete in the global marketplace. We need to take a lead from China. We admire what they're doing.

Q: Hello, my name is Samuel Dickson. I wanted to ask the question, considering the fact that you also have the idea of private-public partnerships and cite it here, under the FDR administration and under Eisenhower that wasn't necessary to get things done. So why is it that you think that these types of partnerships are necessary today in the current economic situation?

GOV. SCHWARZENEGGER: Well, first of all, times change. And we see now that there is more money in the private sector than in the public sector, so I think it is common sense that we say here is a way to do it. I think more and more private investors are interested in getting involved with those kinds of projects. I've used an example, for instance, up in British Columbia where we have seen a tremendous amount of building is going on, where there is a public-private partnerships. And labor is happy, the political leaders are happy, the people are happy, the workers are happy because everyone is working. So I think it's a great benefit, and that's what we want to do here in California, and that's' what we ought to do all over the United States.

MAYOR BLOOMBERG: I think another thing; with private capital you can do things that you can't do with the public's money. You can innovate in ways that the public just does not want to run the risk of doing. That's why we went from the Old Masters to Impressionism, because there was private money. It's not true just in the arts. When it comes to infrastructure, there are riskier projects that the government is not willing to do, but if the private sector would take some of the risk, then perhaps they would do something like that. And I think if we're going to have some of these really innovative ways of transporting people, or of treating people, or of educating people, we need to do the different things that we have been unwilling to do in the past.

And so there really is a difference between doing the conventional things that they did back after the Depression when we really had to jumpstart this country by building, just building buildings. Today we want to build buildings in places we're not sure it's going to work. We want to build buildings we're not sure whether they're the right kind of buildings. But we have to experiment, otherwise we're not going to have the kind of future that you see elsewhere.

And I'll give you one good example of that. If you go to Bilbao and take a look at the Frank Gehry Museum, that was done, much to my amazement, by a public entity. Unfortunately, most people, most governments, didn't have the courage to do something like that. But because they did -- in this case it happened not to be a public-private partnership, but it was a bunch of innovative people -- you have a phenomenal Frank Gehry building right here in Los Angeles.

GOV. RENDELL: Let me say the Governor and the Mayor are both right.

·   No. 1, right now we are finding more capital available in the private sector than the public sector.

·   And No. 2, good example -- when I was mayor of Philadelphia we needed to build a new international terminal for our airport, and we needed to get it done fast, because we were catching on as a very hot airport, taking a lot of European travel away from JFK. And we let the airlines build it themselves, we set an agreement. And they built it probably in a half to a third of the time it would have taken had it gone through the public bid procedure.

GOV. SCHWARZENEGGER: Thank you very much.