CTED issued a report on public works needs identified in local comprehensive plans submitted through March, 1995. The six year capital facilities plans varied substantially. This finding suggests GMA plans are seriously underfunded. The situation becomes even more critical as the federal government cuts back on infrastructure funding. With pending reductions in federal funding and the limits on state revenues imposed by Initiative 601, Washington will have to be more strategic in allocating its increasingly scarce revenues.
Public infrastructure can be a significant determinant of economic performance on a regional basis.
Generally, the impact is through the actual construction of the infrastructure and through productivity impacts and influence on employment growth. Other studies suggest that public capital investment also has a positive impact on employment growth at the state level by influencing locational decisions. In some cases, public infrastructure investment can be shown to be critically related to private capital formation at the local level. Capital facilities investment can have a significant impact on property values and thus property taxes in a city. The state and local governments should develop a more comprehensive strategy to fund and allocate infrastructure dollars.