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URBAN INFRASTRUCTURE AND ECONOMIC DEVELOPMENT IN AMERICAN CITIES

This hearing examined how Federal budgetary issues affect urban America and looked to ways in which spending priorities might be reordered with the least disruption at the municipal level. America was one identified as an experiment in transportation. Several witnesses noted that insufficient investment was being made to assure maintenance of existing facilities. Government should not walk away from existing investments because such public works are an essential part of the national wealth, and a major determinant of urban and rural economic development. The Federal government does make almost half of the public works expenditures; the nation also requires a systematic public works financing strategy which involves all levels of government. Privatization is not an automatic solution to all problems. The demand for urban roads and mass transportation cannot be met by routine underinvestment. Revenues from fuel taxes and other user fees have not kept pace with inflation as the costs for roads and transit have equalled, and often exceeded, inflation. Rapidly growing intrasuburban travel and service for the elderly and handicapped are creating a need for more flexible transit services. Metropolitan areas generate 80 percent of the income and about that level of Federal tax revenue. Cutbacks of funds for these areas have been rapid and deep. This affects not only transportation but economic development, sewage systems and many other municipal functions. User fees, such as gasoline taxes, offer a means of financing not only highways but also mass transit. If revenue sharing is not renewed, cities will be forced to raise user fees and taxes, or to cut back drastically on all services. If public transit is inadequate, there will be a decline in the quality of life for the low income, elderly and handicapped; they will be incapable of getting to places of employment.

  • Supplemental Notes:
    • Hearing before the Task Force on Community and Natural Resources of the Committee on the Budget, 99th Congress, 2nd Session, January 22, 1986.
  • Corporate Authors:

    United States House of Representatives

    Committee on the Budget
    Washington, DC  United States  20515
  • Publication Date: 1986

Media Info

  • Features: Figures;
  • Pagination: 114 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00454947
  • Record Type: Publication
  • Report/Paper Numbers: No. 6-2
  • Files: TRIS
  • Created Date: May 31 1988 12:00AM