Government Officials, Practitioners and Academics Gathered Together at a Conference in Sacramento to Discuss California's Infrastructure Crisis

Business Wire, March 8, 2008

Several speakers addressed the central problem with water infrastructure financing, which is a major disconnect between the value of water and its pricing in the state. Both Brian Thomas, Chief Financial Officer of the Metropolitan Water District of Southern California, and Michael Deane of the U.S. Environmental Protection Agency spoke about the importance of pricing water appropriately to promote conservation and manage demand, as well as to support investment in the facilities that will meet future needs and environmental goals. Often, the true costs of providing water are not reflected in its price for users, leading many users to take this scarce and vital resource for granted.

Ellen Hanak of the Public Policy Institute of California underscored this point as well, although she focused on the need for new investment in flood control infrastructure as an even more urgent problem. Aging levies and deteriorating environmental quality in the Sacramento Delta could threaten the water supply of the entire state and poses a major financial and political challenge for state leaders.

While speakers did not always agree on the preferred mechanisms for new investment in infrastructure, it was clear by the end of the final session that innovation and flexibility in financing is critical in the face of such enormous need. Richard Little remarked, "The magnitude of infrastructure revenue shortfalls is such that we must consider all options for financing transportation and other vital services."

About The Keston Institute

The Keston Institute for Public Finance and Infrastructure Policy at the University of Southern California is a non-partisan research center that actively addresses California and the nation's public finance and infrastructure challenges. It is specifically focused on regional and national transportation and water issues and promoting economic viability, livability and environmental sustainability.

The University of Southern California (USC), which houses The Institute within its School of Public Policy, Planning and Development (SPPD), whose faculty collectively ranks third at USC in terms of per capita research grants, is one of the nation's leading research facilities for issues relating to public finance and infrastructure finance in the nation.

Together with the Keston Institute, the USC School of Policy, Planning and Development, has created the only educational and policy degree track in the field of civil infrastructure, with the goal of making USC a world leader in infrastructure and policy development.

The Institute's ongoing research is exclusively focused on analyzing core infrastructure challenges facing California and the nation, while presenting realistic, objective recommendations to voters and policymakers. For more information about The Keston Institute, please visit http://www.usc.edu/keston