Big Idea #6: Provide Education and Incentives for Innovative Finance Approaches

This post is the second post in a series focused on solving the $2 trillion infrastructure funding gap and positioning the United States for the future.

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Public Private Partnerships (P3) could play a vital role in addressing the nation’s infrastructure needs.  However, most state and local officials are lacking in the skills, knowledge and in many cases time, needed to pursue a P3.   

To negotiate effectively on behalf of their constituents, officials need to understand the pros and cons of using P3s, what other alternatives are available, and what the long-term implications of their choices will be. Staff with expertise in traditional procurement and project management may not be familiar with the structure of P3s, and agencies asked to review, and issue permits for these projects may question the approach. These conditions create a kind of inertia among public agencies, leading them to continue using familiar, conventional methods that have resulted in a $1.4 trillion funding gap.  Therefore, we call on Congress to increase capacity at the state, local and federal agency level to pursue, negotiate and implement innovative finance approaches.