From the deteriorating Gowanus Expressway in Brooklyn, New York, to the aging dams that supply about 70 percent of California’s water, America’s public infrastructure is badly in need of fixing. The nation is estimated to have accumulated about $1 trillion in deferred infrastructure maintenance, and even more will be needed to rebuild or retrofit roads, water plants, schools, and electrical grids to withstand the punishments of increasingly extreme weather. William Glasgall, Penn IUR Fellow and Volcker Alliance Public Finance Adviser, Susan Wachter, Co-Director of Penn IUR and Wharton professor, and our expert panel discuss the state of America’s infrastructure and how some states are developing strategies to better identify and fund needed investments. Panelists include: • Geoffrey Buswick, Managing Director & Sector Leader in U.S. Public Finance, S&P Global Ratings • Camila Fonseca Sarmiento, Director of Fiscal Research, Institute for Urban and Regional Infrastructure Finance • Hughey Newsome, Chief Financial Officer, Sound Transit • Leslie Richards, Professor of Practice, City and Regional Planning, Weitzman School of Design and Former CEO of SEPTA • Fatima Yousofi, Senior Officer, The Pew Charitable Trusts. NOTABLE QUOTES Notable Quotes -Fatima Yousofi: “Just like we've seen with public pension underfunding in the past, these hidden costs can quietly accumulate for years until they really start crowding out spending priorities and straining government budgets.” -Fatima Yousofi: “Pew's research shows that states have accumulated more than $105 billion in unmet road and bridge repair needs since 1999. And at the same time, the EPA estimates that we might need to spend another $1.2 trillion over the next 20 years to modernize our drinking water, wastewater, and stormwater systems.” -Camila Fonseca Sarmiento: “In recent years, there has been an increase in the funding sources that are available to address deferred maintenance. I'm not saying that there is funding that is high for deferred maintenance. Actually, when we look into the 10 case studies, the funding that is allocated for deferred maintenance only covers 4% of the total need, so that is very low.” -Geoffrey Buswick: “In 25, we're on track for nearly $600 billion in municipal bond volume, and that is an all-time high mark after last year, which was also an all-time high mark.” -Geoffrey Buswick: “So, in the industry, we've become accustomed to federal government incentivizing capital projects through regulations, grants, project matching funds, but as these tools are being curtailed or cut at the federal level, more of the costs are likely to fall to other levels of government. This could further challenge this needed upkeep in spending. And at a time when the American Society of Civil Engineers is estimating about $3.7 trillion of capital needs above current funding levels over the next 10 years, simply to get to a level of good repair?” -Leslie Richards: “you can't maintain your way out of a 50-year-old fleet. At some point, the equipment simply needs to be replaced. And that's where the financial pressure comes in.” -Leslie Richards: “I often describe it this way, using capital funds for operations is like using your roof repair fund to pay the light bill. It keeps things working today, but the storm is still coming, and you need a strong roof. And SEPTA is not alone in this. Agencies all over the country are being forced into the same trade-offs.” -Leslie Richards: “we can't keep running 21st century service on 20th century equipment with 19th century funding models. We have to build a new approach, one that values reliability, transparency, and safety of the people who ride and operate these systems every day.” -Hughey Newsome: “agencies, as best as they can, have to think through how do you find other stable sources, given that, there's always going to be volatility coming from Washington.”