LAO: Bonds Key to Improving Infrastructure

The nonpartisan Legislative Analyst's Office has released a report on California's infrastructure needs and how the state could finance improvements. You can read the full report here As far as financing is concerned, here is the key paragraph: In theory, we could fund all of our infrastructure needs upfront through the direct appropriations of taxes and fees under a pay-as-you-go approach without any borrowing. However, this is not realistic, given the large volume of our infrastructure needs, the importance of having this infrastructure available within the foreseeable future, and the substantial magnitude of tax and fee increases that direct appropriations would necessitate. Thus, although direct appropriations and renting/leasing may be able to play an important role in addressing our infrastructure needs, borrowing through the use of bond financing will have to play a significant role.