The credit rating agency Fitch Ratings maintains government plans to renew and advance the nation’s infrastructure should begin with a new model.
A results-oriented, objective and strategic approach to investment, along with responsible stewardship of the public purse, are paramount, according to Fitch Ratings officials. Increased spending without a strategic, comprehensive approach to infrastructure investment based on national priorities will not go far in addressing the continued deterioration of critical economic assets.
The effort to address infrastructure needs requires a significant increase in yearly new investment, per the Fitch Ratings assessment – which notes prior government funding proposals have not been as robust as needed, suggesting up to $200 billion in new investment annually.
Fitch Ratings maintains a multi-trillion dollar infrastructure deficit will require a glide-path to trillion-dollar annual investments at 5 percent of US GDP and more than double recent historical levels to have a meaningful impact.
The credit rating agency has suggested the formation of an independent, non-partisan infrastructure commission empowered with the ability to influence funding and spending as a means of facilitating sustained planning and investment.
While Fitch Ratings acknowledges that states and local governments have attempted to address infrastructure funding gaps by raising gas taxes, using toll revenues for other unrelated projects or entering into public-private partnerships, infrastructure needs are too great to address on their own.
The agency maintains states and municipalities need funding visibility and assistance to begin work on necessary projects.