Documents/GAO2007/1: Well-being and Financial Security/1.8: Physical Infrastructure

1.8: Physical Infrastructure

A Safe, Secure, and Effective National Physical Infrastructure

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The nation’s economic vitality and the quality of life of its citizens depend significantly on the soundness, security, and availability of its physical infrastructure. Transportation and telecommunications systems, for instance, provide the superstructure for the nation’s economic engine, facilitating the movement of people, goods, and information. The nation faces major challenges in improving both efficiency and safety in the movement of people and goods. The nation relies heavily on its postal system for efficient mail delivery service. And thousands of federal facilities house and support staff and the other assets needed to provide services to the American people. In both the short and long term, the nation faces important infrastructure challenges as federal, state, and local governments confront new demands brought on by changes in national security, demographics, technology, and lifestyles. The challenges are complex, cutting across many interrelated issues, and require coordinated intergovernmental responses. For example, the nation’s commercial passenger airlines, which were experiencing financial difficulties even before the September 11 terrorist attacks, have experienced unprecedented financial losses stemming from reduced air travel, raising debate over the appropriate federal response. Also, long-term trends indicate that increasing numbers of motorists are encountering increasingly congested highways, while bottlenecks have escalated for freight transportation at intermodal connection points. Suburban growth has raised demands for new roads, water and sewer systems, and access to telecommunications. At the same time, existing communities are demanding that the environment and their citizens’ quality of life not be harmed by this growth. The cost of maintaining and modernizing its infrastructure is only one concern of a U.S. Postal Service that faces growing financial, operational, and human capital challenges. In addition, the deregulated transportation and telecommunications industries require continuous oversight to help ensure that firms compete on a level playing field and that consumers receive the intended benefits of deregulation. The responses of the federal government and other levels of government to these infrastructure challenges will have important consequences for the nation’s future because of their effects on the quality of life and their significant costs. With the return to large federal deficits, decision makers will be faced with difficult choices on how to allocate funding among infrastructure needs and other demands in an increasingly tight budget environment. Given limited resources, decision makers must choose investments that promise to be most cost-effective and targeted to address national infrastructure needs. These choices must be supported by credible data on needs and costs, performance information and measures highlighting outcomes from existing programs, and a budget process prompting a more explicit focus on investment spending across agencies. It is therefore essential for government at all levels to have the information needed to make well-informed decisions about how to allocate funds among competing priorities, evaluate the challenges to determine which solutions are most cost-effective, and implement these solutions as efficiently and effectively as possible.

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