Louisiana task force recommends P3s for funding transportation needs

When a backlog of critical needs for state highways and bridges climbs to $13 billion, it’s time for innovative thinking on the part of government leaders. That’s the uphill climb that Louisiana officials are facing in the upcoming 2017 legislative session.

Photo by Nicolas Raymond is licensed under CC BY 2.0

Gov. John Edwards will have between now and the session’s April 10 start date to study the recommendations of a Task Force on Transportation Infrastructure. The group was organized to study the state’s multi-modal infrastructure problems and propose investment solutions to address funding shortages. Key among the recommendations is a proposal to increase the state’s reliance on public-private partnerships (P3s).

Task force members held meetings throughout the state and received input from citizens.  According to a resolution from the task force, there was “acknowledged interest and support” for P3s to finance transportation projects. The resolution also notes that the state Department of Transportation has studied P3s in other states and has necessary resources to manage these types of engagements.

Task Force on Transportation Infrastructure members expressed confidence in public-private partnerships and felt the state could successfully leverage new recurring revenue sources. And, the state has already laid the groundwork for P3s by passing a bill that authorizes public-private partnerships through the Louisiana Transportation Authority. Additional legislative action in 2016 opened the door for the Department of Transportation and Development to solicit P3s.

This week, the transportation infrastructure task force adopted 10 resolutions that will be part of a report that Edwards will receive by the end of this year. He will study the recommendations as he decides on his platform for the legislature.

Although Task Force on Transportation Infrastructure members recommended seeking private-sector investments of revenue, they also determined that the state will need an additional $700 million per year in transportation funding. This, they say, will be necessary to ensure sufficient financial support for numerous large projects.

Because President-elect Donald Trump has said his intent is to incentivize private capital investment in the nation’s infrastructure when he takes office, Louisiana officials feel that necessary funding must be available for matching or drawing down additional federal funds. For P3s to work in the state, and for the state to have enough revenue to qualify for federal funding, task force members urged that new sources of recurring revenue be made available. Addressing that issue, one resolution recommends the use of tolling – a concept that has been controversial in some states such as Texas.

Acceptance of private-sector investment in large public projects could soon be the norm nationwide. Forward-thinking public officials are looking at all possible funding sources to help bridge the gap between available revenue and critical infrastructure needs. Louisiana may join many other states that are already addressing infrastructure problems through collaboration with private-sector partners.