Publications

- April 2011: Vol. 4, Number 4

To read this full article you need to be subscribed to Institutional Investing in Infrastructure

P3s in the City: U.S. Municipalities Balance Growing Budget Shortfalls with Infrastructure Needs

by Addison Smith

As municipalities face budget shortfalls, unfunded pensions, and declining revenue streams, city officials are considering public-private partnerships (P3s) to fill financial gaps. Due to municipal autonomy, cities often have their own ability to pursue a P3 even when the state has no P3-enabling legislation. This has expanded the overall P3 market scope and has led to more diverse projects. However, these deals face the same political hurdles at the municipal level that they face at the state level.

While municipalities deal with daunting financial scenarios in the immediate future, city officials currently have the luxury of waiting and shirking responsibility. As we have seen in many cases, the need for upfront money that a P3 can provide to backfill shortfalls and enhance infrastructure is not as urgent as the market would like to think. Even though there are significant looming threats, city officials have a sense that they can punt decisions to future city governments a

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy