In the midst of a sluggish economy, nearly every state is facing a significant budget crisis. California's 2010 deficit is expected to be $25 billion to $41 billion. New York, New Jersey, Illinois, Ohio, Florida, and many other states expect at least $1 billion each in red ink next year. As state legislatures grapple with these deficits, it is no secret many are counting on money from federal stimulus package to fill their gaps. Transportation is widely viewed as a key component for any stimulus, and the current House proposal doesn't skimp when it comes to roads and transit. However, even with stimulus assistance, a paradigm shift towards private sector participation in transportation funding is needed if states want to solve the underlying problems that caused this mess and avoid additional trouble in the long-term.Whole column here. Reason's Samuel Staley and Adrian Moore on Infrastructure Spending here.
Transportation Spending Won't Stimulate Economy
In a new column, Reason Foundation's Shirley Ybarra and Anthony Randazzo write: