CSF Associates Inc.

Federalism and America's Public Works

Author(s): Bruce D. McDowell
Source: Publius, Vol. 18, No. 3, The State of American Federalism, 1987 (Summer, 1988), pp.
97-112
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/3330275
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PublicWorks
Federalism
andAmerica's
BruceD. McDowell
U.S. AdvisoryCommission
on Intergovernmental
Relations
submitted
itsfinal
On24February
1988,theNationalCouncilonPublicWorks
Improvement
and theCongress.Thereport
concluded
's publicworksto thepresident
reporton thenation
isnotinruins,as charged
America
thatAmerica's
bookentitled
infrastructure
bythelandmark
inRuins.Thereport
didsay,however,
thatthenation
is onlybarelyadequate
's infrastructure
andgetting
worse.Thecouncilurgedthenationto reverse
courseandgivegreater
attention
toinfrastructure
renewal
andexpansion.
In thecouncil'sview,federalism
willbe a majorfactorin thesuccessof theneededturnaround.
Suchchangewillrequire
sharedresponsibilities
thefederal,state,andlocalgovernments
sector.Significant
plustheprivate
involving
changes
intherelationships
amongtheseactorshavemadethe1980sa decadeoftransition,
diminishing
on infrastructure
issues.
federalinfluence

The NationalCouncilon Public WorksImprovement

(NCPWI) was
established
by Congressin the fallof 19841in responseto chargesthat
wasnotbeingmaintained
That
America'sphysical
infrastructure
properly.
bookentitled
AmericainRuins,2
wasfollowed
charge,madein a landmark
bya catastrophic
bysomehighly
bridge
collapseontheConnecticut
Turnpike,
inNewYorkCity,andbysubstanvisible
watermain
andsubway
breakdowns
A number
tialmediaattention
to infrastructure
ofbillshadbeen
problems.
intheCongress
introduced
to increase
by1984,withmostofthemproposing
federalspending
on thenation'sinfrastructure.
condition
of thenaCongressaskedthecouncilto evaluatethepresent
tion'spublicworksandtheirability
to support
America'scontinued
growth
andeconomicvitality.
also requested
fortakinginvenCongress
guidelines
thecondition
of theinfrastructure.
toryand monitoring
TheNCPWI consisted
offivemembers-three
appointed
bythepresident,
onebytheSenate,andonebytheHouseofRepresentatives.
It wasassisted
between
federal
cabinet
bya twelve-member
advisory
group-divided
equally
members
and theelectedheadsof themajornationalassociations
of state
andlocalgovernment-plus
a smallstaffand a largestableofconsultants.
The councilproducedthreereports.
The firstidentified
a widerangeof
works
issuesand setthestudyagenda.3The secondtooka detailed
public
lookat nineseparate
ofpublicworksinthetransportation,
categories
water,
'Public Law 98-501, "The Public Works ImprovementAct of 1984."

2PatChoateand SusanWalter,AmericainRuins:BeyondthePublicWorksPorkBarrel

(Washington,D.C.: Council of State PlanningAgencies, 1981).

3NationalCouncil on Public WorksImprovement,
The Nation's Public Works:Definingthe
Issues (Washington,D.C.: NationalCouncil on Public WorksImprovement,
September1986).
Publius: The Journalof Federalism18 (Summer 1988)

97

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98

Publius/Summer
1988

and wastemanagement
The finalreportsuggested
to Congressand
fields.4
thepresident
an extensive
for
the
nation's
agenda improving
publicworks.5
The council recommended
not only spendingmore, but billingthe
andgetting
valueforeverypublicworksdollarspent.
beneficiaries,
greater
OVERVIEW OF THE COUNCIL'S FINAL REPORT

theNCPWI didnotfindAmerica'sinfrastructure
to be in ruins,
Although
seriousandincreasing
maintenance
as wellas a growitidentified
problems
The council'sreportcard on eightmajor
ing lag in capitalinvestment.
In general,the
of publicworksproducedonlya "C" average.6
categories
thatthenationis getting
councilconcluded
byonlybylivingoffof itspast
investments.
Performance
of theNation'sInfrastructure
of publicworksstudiedbythecouncil
Lookingahead,all thecategories
futures.
werefoundtofaceuncertain
weregiven
Eightoftheseninecategories
card.Theninth-intermodal
gradeson a report
transportation-had
significantproblems
also,butwasnotgivena grade.Herearethegradesawarded
bythecouncil.
Waterresources
received
thehighest
grade,a "B," fromthecouncil.This
flood
and water
broad
includes
control,irrigation,
dams,
very
category
and
shoreline
stream-bank
water
protection.
Although
transportation,
plus
most
the
are
of
facilities
resources
majordevelopment
generally adequate,
Additional
smaller
alreadyhavebeenexploited.
opportunities
opportunities
butfocusing
on thesetasks
do exist,and maintenance
needsare growing,
andlesspoliticalsupport
thanmajornewdeveloplessenthusiasm
attracts
funds
havebeenlegislated
forwatertransporNewfederal
trust
mentprojects.
have
been
instituted
and
tationpurposes, cost-sharing
byConrequirements
for
and
ofmore
incentives
the
selection
needed
design
gressthatmayprovide
the
new
efficient
However,
cost-sharing
arrangements
economically
projects.
inpoorercommunities.
tofinance
neededprojects
alsomaymakeitdifficult
ofwaterresources
In addition,implementation
projectshasbecomeslower
sensitivities
haverisenand costas environmental
and morecumbersome
betweenthe federaland nonfederal
sponsorshave
sharingnegotiations
4NationalCouncil on Public Works Improvement,The Nation's Public Works:Categories
of Public WorksSeries(Washington,D.C.: NationalCouncil on Public WorksImprovement,
May 1987), publishedin tenvolumesas follows:(1) ExecutiveSummariesof Nine Studies,(2)
Highways,Streets,Roads, and Bridges,(3) Mass Transit,(4) Airportsand Airways,(5) Intermodal Transportation,(6) WaterResources,(7) WaterSupply,(8) WastewaterManagement,
(9) Solid Waste, and (10) Hazardous Waste Management.
5National Council on Public Works Improvement,Fragile Foundations: A Report on
America's Public Works,Final Reportto the Presidentand theCongress(Washington,D.C.:
U.S. GovernmentPrintingOffice,February1988).
6The "grades" werearrivedat as a consensusamongthe council membersafterexamining
a wide body of evidence.

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PublicWorks

99

intensified.
Water
thegradeof"B-" fromthecounsupplyandaviationbothreceived
Local
water
have
been
cil.
new
suppliesgenerally
adequate.However,strict
for
federal
standards drinking
waterareexpected
torequire
dramatic
increases
in waterratesoverthenextdecade.Manypublicwatersystems
pricetheir
services
belowcost;nowtheyfacean added$5 billioncapitalexpenditure
tomeetthenewstandards.
insomeoldercities,
Deterioration
ofwatersystems
insomeregions,
seriousgroundwater
drawdowns
andtheneedto reallocate
availablewatersuppliesbetweenagricultural
and urbanusersin theWest
pose additionalchallenges.
The nation'sairports
and airways
havehandledrapidincreases
generally
in demandsafelyand effectively.
is growing
bothin
However,congestion
theair and on theground,whilesizablecash balancesremainunspentin
thefederalairportsand airwaystrustfund.
earneda "C+ " fromthecouncil.FederalandstategastaxinHighways
creaseshavesupported
increased
maintenance
andimproved
conpavement
inthelastfiveorsixyears.However,
ditions
is falling
short
system
expansion
of need,and congestion
is becoming
a majorproblemin manyurbanand
suburbanareas.Imminent
oftheinterstate
has
completion
highway
system
leftthefederalhighway
without
cleargoals,federalfunding
has
program
becomeincreasingly
andthestateshavebegunto squabbleover
unreliable,
uncertain
federal
dollars.
increasingly
Wastewater
earneda "C." As a resultof massivefederal
management
of theU.S. populationis nowserved
grantsforovera decade,75 percent
wastewater
treatment
thefederal
bysecondary
plants.However,
government
isspinning-off
thataidprogram
tothestates
themcapitalize
revolvbyhelping
aredesigned
to continue
thetreatingloanfunds.Thesenewstateprograms
mentplantsegment
of thewastewater
effort.Nevertheless,
management
severalproblems
remain.Uncontrolled
sourcesofpollution,
suchas urban
andagricultural
wastewater
runoff
andgroundwater
arenot
contamination,
addressed
In
the
and
being
systematically.addition, productivity operational
of secondary
effectiveness
treatment
facilities
aredeclining,
ininresulting
creasedviolationsof waterqualitystandards.
Solidwastemanagement
andmasstransit
bothearnedthegradeof "C-"
fromthecouncil.Although
environmental
standards
forlandfills
tougher
andnewwaste-to-energy
havemadethedisposalofsolidwastes
technologies
inurbanareas,publicopposition
tositing
safer,costsarerising
dramatically
eventheseenvironmentally
saferfacilities
hasbecomea majorproblem,
and
wastereduction,
andrecycling
efforts
arereceiving
too littleatseparation,
tention.Disposalneedsare growing
morerapidlythandisposalcapacity.
Withrespectto mass transit,federalfundinghas movedmostserviceprovidersfromtheprivatesectorintothepublicsector,has improvedthequalityof servicein manyareas, and has reversedpostwardeclinesin ridership.
However,divertingpeople fromtheircars continuesto be exceedinglydifficult.Productivity
is droppingand benefitsare distributed
unevenly.While
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100

Publius/Summer
1988

is overcapitalized
in manysmallercities,needsin olderlarger
masstransit
citiesgo unmet.
Hazardouswastemanagement
bringsup therearwitha gradeof "D."
for
federal
hazardous
wastesitecleanupshas increased
Although
funding
of thewastesproducedeachyear
fivefold
since1986,onlysmallfractions
arebeingtreatedsafely.In addition,thereis a massivebacklogof poisons
forproperdisposal.Littleis beingdoneto reducehazardouswastes
waiting
for recycling
beforetheyare producedor to provideincentives
them.
to be minimal,
thepublicrolecontinues
mostof thehazardous
Although
wasteproblemremainsto be addressedin thefuture.
ontheseeightcategories
ofpublicworksbecause
TheNCPWIconcentrated
federalroleineachofthem.However,thecouncilrecogofthesignificant
nizedthattherearemanyothertypesofpublicworksequallyinneedof atTheseincludefacilities
suchas
tentionby stateand local governments.
and
schools,firehouses,
offices,
publichousing,
jails,government
hospitals,
that
of
its
for
The
council
believes
recommendations
many
public
parks.
as wellas to
are applicableto thesetypesof facilities
worksimprovement
thosethatthecouncilstudiedin detail.
Linksto theEconomy
towhichphysical
theextent
fortheNCPWIdocumented
Research
prepared
and
in
the
nation's
a
vital
role
infrastructure
economy intheeconomies
plays
sectorsof the
The industrial
of thevariousregions,states,and localities.7
in infrastruc56
of
the
increase
for
over
account
alone,
percent
economy,
theneedsof industry
usedbetween1977and 1984.Projecting
tureservices
of infrastruc1995suggests
theneedforexpansion
through
conservatively
overtheten-year
tureservices
period.If infrastrucbymorethanone-third
thelag coulddampenthe
turedoes not keepup witheconomicgrowth,
costsofproduction.
intohigher
moreprivate
spending
byforcing
economy
anddetours
thecostoftruckmaintenance,
Forexample,
poorroadsincrease
add thecostsof extramilesandextratime.To avoidsuchaddedcosts,the
forpublic
andfuture
thatthecurrent
councilbelieves
performance
prospects
worksneedto be improved,
immediately.
beginning
sharesof
to increase,
continues
greater
publicworksspending
Although
andmaintenance.
itaregoingintooperations
byall units
Capitalspending
7U.S. Departmentof Commerce,Officeof EconomicAffairs,"Effectsof Structural
Change
in theU.S. Economyon theUse of Public WorksServices,"preparedfortheNationalCouncil
on Public Works Improvement
(Washington,D.C., July1987). See also, Randall W. Eberts,
to RegionalGrowth,"Working
"EstimatingtheContributionof Urban Public Infrastructure
Paper8610(Cleveland,Ohio: FederalReserveBank of Cleveland,December1986);TeresaGarciaMila and Therese McGuire, "The Contributionof Publicly Provided Inputs to States'
July1987); and
Economies," WoodrowWilsonSchool DiscussionSeries(PrincetonUniversity,
Urbanomics,"The Role of Public Works in SupportingRegional and IndustrialGrowth,"
D.C., September
(Washington,
preparedfortheNationalCouncilon PublicWorksImprovement
1987); and David Alan Aschauer,"Is thePublic Capital StockToo Low?" ChicagoFed Letter
(Chicago, Ill.: The Federal ReserveBank of Chicago, October 1987).
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PublicWorks

101

of government
sincethen,
peakedin thelate1960sand has beendeclining
with
the
share
of
all
that
for
along
(1)
government
spending goes publicworks,
(2) thepercentof grossnationalproduct(GNP) devotedto publicworks,
and (3) publicworkscapital spendingas a percentof privatecapital
spending.8
GeneralStrategies
forPublic WorksImprovement
To reverse
thisdownward
a comprehensive
slide,thecouncilprescribes
setof actions.Theseinclude:
* increased
andtheprivatesector;
spending
byall unitsof government
* a clearerlinkbetweenbenefits
providedand taxesor feesleviedfor
thesupportof publicworks;
* a newstyleof moreeffective
performance-based
management;
* clearerresponsibilities
and authority
forachieving
results;
* acceleratedinnovationthroughstrongerresearch,development,
and innovation
transfer
and
demonstration,
programs;
* an adequatesupplyof betterqualifiedpersonnel
in all partsof the
process.
Two of theseelements
are at theheartof infrastructure
federalism:
the
works
all
and
the
call
for
clarification
of
public
by governments,
spending
federal-state-local
rolesand responsibilities.
All governments
are involved
now. However,somesignificant
rolechangesalreadyhaveoccurred,
and
others
are
The
council
these
issues
many
beingproposed.
report
catalogues
andsetsforth
a framework
forevaluating
them.Theremainder
ofthisarticle focuseson thefederalism
of
the
council'sreport.
aspects
A FOCUS ON FEDERALISM

TheNCPWI determined
thatmanypublicworks,though
local,have
largely
morethanlocalsignificance.
andsharedfinancIntergovernmental
regulation
eventhough
direct
stateandfederal
rolesinowninghavebecomeimportant,
andmaintaining
limited.
Forexing,operating,
publicworksarerelatively
rolein
ample,althoughfederaland stategovernments
playan important
thereis no federal
ofroadsexcepton federal
highway
programs,
ownership
statesownonlyabout24 percentof all roadmileagein
lands;moreover,
thenation.
Examining
publicworksrolesmeanslookingat manyactorsand a wide
rangeoftasks.Theactorsincludethefederal,
state,andlocalgovernments,
unitsof government,
and privatefirms.The
special-and general-purpose
principaltasks includethe following:

8ApogeeResearch,Inc., "Are We SpendingEnough on Public Works?" A Public Works

Issue Paper preparedforthe National Council on Public Works Improvement(Washington,
D.C., 14 October 1987).
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102

Publius/Summer
1988

* Establishing
generalprogram
goals,policies,and strategic
plans.
* Regulating
facilities
and services.
* Planning,building,owning,operating,and maintaining
specific
facilities
(projects).
* Financing
and maintenance.
capitalimprovements,
operations,
* Researching
newtechnologies
and demonstrating
and techniques.
* Providing
innovation.
technical
assistanceand promoting
rolesof thefederal,state,and local governFigure1 showstherelative
for
and capitalexpenditures
mentsin financing
maintenance,
operations,
data are available).The
seventypesof publicworks(forwhichconsistent
inthecapital
offederal
aretheheavyconcentration
patterns
financing
striking
sector,the generaldominanceof local financingfor operationsand
smallstatefinancing
and therelatively
role.(Thestateis immaintenance,
in
in
and
of
some
water
aspects
projects.)
portant highways
Ofcourse,thereis muchmoretopublicworksthanfinancial
relationships.
exercised
theleadrolescurrently
Figure2 summarizes
bythethreelevelsof
withrespect
to (1) policyandstandard
setting,
(2) capitalfinancgovernment
Thereference
and
and
operations, non-capital
financing.
ing, (3) ownership,
thatthereareveryfewexclusive
to "lead" rolesrecognizes
roles,butthere
Because
for
care
of
certain
oftenareseniorpartners taking
responsibilities.
forprograms
of theseinterrelationships,
of thecomplexity
accountability
thatclarifying
theleadrespontotrace.Thecouncilbelieves
is oftendifficult
marksthepath
and matching
themwithcommensurate
sibilities
authority
effectiveness.
to greater
Lead Roles9
Current
As Figure2 shows,thefederalgovernment
currently
playsthedominant
for
and
in
standards
role planning,
for,
capitalfinancing
providing
setting
airin
the
nation's
and
theinterstate
highway
system; operating maintaining
andmajordams;andincleaning
up majorhazardouswaste
ways,harbors,
andmany
ofmasstransit
sites.It alsotakestheleadinthecapitalfinancing
treatinstandard-setting
forurbanwatersupply,
wastewater
smaller
airports;
forwastewater
treatment,and hazardouswaste;and in capitalfinancing
loanfundswillbe capitalized
staterevolving
ment.Thelastroleischanging;
forwastewater
thusphasingoutfederalfunding
undercurrent
legislation,
toceasein1990,
arescheduled
Federalconstruction
facilities.
treatment
grants
1994.
ofstateloanfundsisauthorized
federal
through
capitalization
although
federal-aid
rolesonlyinnoninterstate
Statesnowplaydominant
highways
thestatesown,operate,and
damsafety
andnonfederal
Although
programs.
9Fora moredetaileddiscussionof issuesraisedin thissection,see WilliamG. Colman, "ProThe Question of Proper Roles,"
vision for the Major Categoriesof PhysicalInfrastructure:
(Washington,D.C., 6 August
preparedfortheNationalCouncilon PublicWorksImprovement
1987).

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Public Works

103

FIGURE 1
GovernmentOutlaysforPublic Worksin 1984, $97.7 Billion
Billionsof
1984dollars

FEDERAL
$25.9billion

25

STATE
$22.5billion

LOCAL
$49.2billion

Operations
$28.5billion

20-

3.8 Federal
5.7 State
19.0 Local

1510-

tI

81

5-

6.7
3.6

2.9

2.12

Water WastewaterWater
HighwaysAirports Mass
Transit Resources
Supply

Maintenance
$28.4billion

2015-

Solid
Waste

1.7 Federal

12.2

7.5 State

V19.2

10-

Local

6.3
2.9

1.9

5-0.9

2.1

2.12

Water WastewaterWater
HighwaysAirports Mass
Transit Resources
Supply

25-

19.9Capital

20-

$40.7 billion
20.4 Federal
9.3 State
11.0 Local

15105-

2.1

0Bar
Totals

Solid
Waste

3.7

3.7
1

59
0.6

ri
Water WastewaterWater Solid
HighwaysAirports Mass
Transit Resources
Supply Waste
40.1

6.6

13.3

6.9

11.9

14.0

4.8

SOURCE: ApogeeResearch,
from
a paper
Inc.,"Separating
Maintenance,"
Operations
fortheNationalCouncilonPublicWorksImprovement.
Valuesupdated12/87
prepared
withApogeestaff.
percommunication
divided
stateandlocaltotalinhalf.
1Arbitrarily
dividedoperations
andmaintenance
totalinhalf.
2Arbitrarily

and noninterstate)
maintainmostof thefederal-aid
highways(bothinterstate
as well as some otherhighways,that mileageaccounts for less than oneThis content downloaded from 200.5.224.104 on Thu, 09 Apr 2015 17:05:24 UTC
All use subject to JSTOR Terms and Conditions

104

Publius/Summer1988
FIGURE 2
UsualLead Rolesin PublicWorksCategoriesa
tasks
Program

of publicworks
Categories
Highways
interstate
noninterstate
Airports
major commercial
generalaviationand
smallercommercial
Airways
Mass transit
Water supply(urban)
Wastewatertreatment
Water resources
ports(landslide)
dredging/navigation
major dams
urban stormwater
nonfederaldam safety
Solid waste
Hazardous waste
currently
generated
site cleanup

Policy&
standard
setting

Capital
Ownership,
operations
& O/M Financing
financing

F
S/L

F
S/L/PS

S
S/L

L
L

L/PS
F

L/PS
L/PS

F
L
F/S
F

F
F
L/PS
F/S

F
L/PS
L/PS
L

L
F
F
L
S
S/L

L/PS
F
F
L
PS/L
L/PS

L/PS
F
F
L
PS/L
L/PS

F/S
F

PS
F

PS
PS

SOURCE: Council staff.Based on WilliamG. Colman, "Provision fortheMajor Categories

The Questionof ProperRoles," a workingpaper preparedforthe
of PhysicalInfrastructure:
6 August1987;also based on theninestudies
NationalCouncilon Public WorksImprovement,
of individualpublic workscategoriespreparedforthe Council in May 1987.
NOTE: F = Federal; S = State; L = Local; PS = PrivateSector.
aBecause of the greatvarietyin the Americanfederalsystem,thereare exceptionsto these
International
lead roles.For example,theBaltimore-Washington
Airportis ownedand operated
bythestateof Maryland,and portsare ownedand operatedbythestatesof Alabama, Georgia,
and Virginia.

in federally-aided
noninterstate
quarterofall roads.Thestates'dominance
inmost
bythestategasolinetax)iseclipsed
(supported
significantly
highways
Themajorexcepstatesbythemuchgreater
mileageoflocalroadsystems.
and NorthCarolina,
tionsare Alaska,WestVirginia,
Delaware,Virginia,
accountsfor85 percentor moreof thetotalroad
wherestateownership
of
80 percent
mileageinthestate.On average,statesspendapproximately
monieson roads.
all theirinfrastructure
staterolein masstransit.Some states,suchas
Thereis an increasing
masstransit
andNewYork,actually
New
operate
Jersey,
Virginia,
Maryland,
to local programs.
contributions
and moststatesmakefinancial
facilities,
tomasstransit
exceeded
Overall,statecontributions
(capitalandoperating)
in 1987,and thegap willwidenin
contributions
thefederalgovernment's
fiscalyear1988underthefederalbudgetapprovedin December1987.
is nowsharedwiththefederal
The staterolein watersupplyregulation
which
national
from
environmental
Thisresulted
concerns,
rising
government.
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PublicWorks

105

federalstandards
drivethe
waterstandards.
led to newdrinking
Similarly,
states'regulatory
rolein managing
hazardouswastes.
currently
generated
rolesaresharedwithlocalities.
The
Federalandstatesolid-waste
regulatory
now emerging
wastewater
treatment
plants
strongstaterolein financing
of responsibility.
resultsfroma federaltransfer
dominatetheprovision
of local roads(acLocal governments
generally
certainlandairports,
countingfor76 percentof all roads),masstransit,
slidefacilities
at waterports,watersupply,urbanstormwater
and
facilities,
includetheuseofspecialdistricts
solid-waste
in many
disposal.Exceptions
oflocalroadsbya fewstates,
andfederal
areas(as notedbelow),theprovision
of transit.In addition,keylocal roles
dominancein thecapitalfinancing
areoftensharedwiththeprivatesector.Thisincludesan important
private
in
roleinfunding,
and
some
cases
water
streets,
operating,
owning
airports,
water
solid-waste
and
nonfederal
dams.
facilities,
ports,
supply,
disposal
and authorities'o
Independent
specialdistricts
providesomepublicworks
in all statesexceptArkansasand Hawaii." Someof theseunitsare agents
ofthestates,
whileothers
areagentsofindividual
orregional
localities
groups
of jurisdictions.
mass
transit,water
They provideairports,highways,
watersupply,
andnatural
resources
facilities.
sanitation,
transport,
sewerage,
More stateswereusingspecialunitsin 1982 thanin 1972 forall these
ofpublicworks.However,
fewer
thanhalfofthestatesusespecial
categories
unitsforhighways,
watertransport,
andsanitation.
Themostfrequently
used
is fornaturalresources
typeof district
(43 states).
Evenamongstatesthatuse independent
and authorities,
specialdistricts
suchunitsspendan averageofmorethanhalfofthecapitalusedat thestate
andlocallevelson onlytwofunctions:
transit
andwatertransport.
However,
individual
statesvarygreatly.
Theproportion
ofcapitaloutlaysspentinany
ofall thestateand
givenstatebysuchunitsrangesfrom0.1 to 100percent
local capitalspending
forthedesignated
functions.
Thesestatistics
theroleof districts
in providing
understate
publicworks
becausetheydo notcount"subordinate"
unitsclassified
the
by U.S. Bureau
of theCensusas beingunderthecontrolof general-purpose
governments.
to one estimate,
thebondedindebtedness
of thesesubordinate
According
districts
ones.'2
equals62 percentof thatof theindependent
The privatesectoralso playsseveralkeyrolesin providing
publicworks
Themostprominent
services.
istheleadroleinowning,
andfinancoperating,
a
of
hazardous
and
facilities
a
substantial
ing majority
waste-management
discussion
ofspecialdistricts
andauthorities,
seeInstitute
ofPublic
loFora morethorough
"The RoleofSpecialDistricts
andPublicAuthorities
inPublicWorksProviAdministration,
fortheNationalCouncilon PublicWorksImprovement
sion,"prepared
D.C.,
(Washington,
August1987)as wellas Colman,"ProvisionfortheMajorCategories."
of "dependent"specialdistricts
"A verylargenumber
also playimportant
publicworks
hostgovernments
roles,buttheyareclassified
bytheU.S. CensusBureauas partsoftheir
(state
orlocal)andarenotincluded
intheCensusofGovernments
reports
uponwhichthisdiscussion
is based.
of PublicAdministration,
"The Role of SpecialDistricts,"
12Institute
p. 11-21.Eventhis
estimate
is an understatement
becauseit is basedon incomplete
market
information.
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106

Publius/Summer
1988

In otherfieldsofpublicworks,theprivate
ofsolid-waste
facilities.
number
roleis usuallysupportive.
Windsof Change
ofthefederalrolearoseas federalfiscal
In thelate1970s,a reevaluation
andentitleinthefaceofrisingdeficits
anddefense
strength
beganto falter
Atthesametime,
a periodofeconomic
mentexpenditures
during
stagnation.
andcostrulesandregulations
stifled
thatfederal
critics
contended
creativity
in meeting
stateand local needs.13
effectiveness
thePresident's
Carter'sadministration,
Jimmy
Bytheendof President
recommended
fora NationalAgendafortheEighties
Commission
shifting
nationalpolicyawayfromplace-oriented
physicaland economicdevelopA fewyears
to people-oriented,
mentprograms
programs.14
place-neutral
National
Evans-Robb
on
and
later,theCommittee Federalism
Purpose(the
madea similarrecommendation.'5
Committee)
incometaxrateshavebeenreducedandfederal
Since1981,federal
spendtowarddefense,
thesocialsafety
haveshifted
net,andinterest
ingpriorities
federal
deficit
riseofthepeacetime
onthenationaldebt.Theunprecedented
ofmanyfederalandredesign
toreconsideration
inthe1980saddedurgency
searches
aidprograms,
including
manyforpublicworks.Thistrendspurred
funds.
forothersourcesof infrastructure
enactedin
incentives
investment
Recenttaxlaw changeshaverescinded
in providing
1981to encouragegreater
public
privatesectorparticipation
of these
outtheeffects
is nowsorting
bondmarket
works.The municipal
newprovisions.
Thesetrendshaveexerteda strongpushto examineoptionsfordecenTheNCPWI foundthatthiswasnot
publicworksresponsibilities.
tralizing
had led to
had beenfelt.Earlieroccurrences
thefirsttimesuchpressures
rolesof governtherelative
ofcriteria
forevaluating
formalconsideration
Thecouncildrewuponthatearlier
federal
within
theAmerican
ments
system.
workand recentupdatesof it.
Criteria
forEvaluatingPublic WorksRoles
World
in federaldomestic
Concernoverthegrowth
following
programs
andstate
insorting
outtheproperrolesofthefederal
WarII spurred
interest
Relations,An Agen13See,forexample,U.S. AdvisoryCommissionon Intergovernmental
da for AmericanFederalism:RestoringConfidenceand Competence(Washington,D.C.: U.S.
RelaGovernment
PrintingOffice,1981)and U.S. AdvisoryCommissionon Intergovernmental
tions,RegulatoryFederalism:Policy, Process, Impact and Reform(Washington,D.C.: U.S.
Government
PrintingOffice,1984). See also, U.S. Officeof Managementand Budget,ManagD.C.: U.S. Government
Office,March
Printing
ingFederalAssistancein the1980s(Washington,
1980).
14ThePresident'sCommissionfora National Agenda forthe Eighties,A National Agenda
for theEighties(Washington,D.C.: U.S. GovernmentPrintingOffice, 1980).
15TheCommitteeon Federalismand National Purpose, To Form a More Perfect Union
(Washington,D.C.: National Conferenceon Social Welfare,December 1985).

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PublicWorks

107

The councilfoundmanystudies,prepared
between
thenand
governments.
of
that
address
the
federal
roles,returning
now,
topics defining
appropriate
federalrolesto statesand localities,
certainestablished
local and
meshing
for
and selecting
tools implementing
areawideresponsibilities,
appropriate
and criteriafoundin those
intergovernmental
policies.'6The principles
studiesweresummarized
proposals
bythecouncilas a guideforreviewing
tomodify
current
Theyarepresented
publicworksrolesandresponsibilities.
in Figure3.
briefly
The basic approachin all thesefederalism
reportsis to emphasizethe
of decentralization,
benefits
exceptwhereclearnationalpurposesareto be
therolesandresponsibilities
ofstateandlocalgovernserved,andto protect
mentsagainstunnecessary
Withthis
intrusions
bythefederalgovernment.
inmind,thecouncilexamined
rolesinthefollowing
guideline
governmental
ninemajorcategories
of publicworks:(1) highways,
streets,
roads,and
mass
intermodal
transit,
(2)
bridges,
(3) airports,
(4)
transportation,
(5) water
water
wastewater
solid
resources,
treatment,
supply,(6)
(7)
waste,and
(8)
hazardous
waste.'7
(9)
ProposedRole Changes
Researchpreparedforthecouncilbroachedmanyproposalsforaltering
presentpublicworksroles.Followingare someexamples.
werefoundto be at a majorturning
Highwayprograms
point.'8The interstate
is
almost
and
there
is
no majornew
highwaysystem
complete,
in
is
uneven
highway
goal sight.Remaining
spending very
amongthestates
becauseunfinished
linksare fewand farbetween.The federalbudgetprocesshasworsened
thesituation
andreducing
bydelaying
payments
anticipated
amounts.
over
a
fair
return
ofthegastaxes
funding
Manystates,squabbling
16Such
studiesinclude:TheU.S. Commission
on Intergovernmental
A Reportto
Relations,
thePresident
to theCongress
D.C.: U.S. Government
forTransmittal
(Washington,
Printing
fivetitlesissuedbytheU.S. Advisory
Commission
on InOffice,June1955);thefollowing
Relations
D.C.: U.S. Government
Governmental
tergovernmental
(Washington,
Printing
Office):
Functions
andProcesses:
Local andAreawide(ReportA-45)February
1974;TheIntergovernmental
GrantSystem:
AnAssessment
andProposedPolicies-Summary
andConcluding
Observations(ReportA-62)June1978;TheFederalRole in theFederalSystem:TheDynamics
of
Growth.
AnAgendaforAmerican
Federalism:
andCompetence
Restoring
Confidence
(Report
FederalProgram
andRevenueSourcesto State
A-86)June1981;Devolving
Responsibilities
andLocal Governments
Selected
Federal-A
idHighway
(ReportA-104)March1986;Devolving
andRevenue
Bases:A Critical
1987.Thefollowing
Programs
Appraisal
(Report
A-108)September
twotitlesissuedbytheCongressional
BudgetOffice(Washington,
D.C.): PublicWorksInina
frastructure:
PolicyConsiderations
forthe1980s,April1983;TheFederalGovernment
FederalSystem:
Current
andOptions
Intergovernmental
Programs
forChange,August1983.
Seeas welltheCommittee
onFederalism
andNationalPurpose,ToForma MorePerfect
Union;
TheWhiteHouse,Working
oftheDomestic
Groupon Federalism
PolicyCouncil,TheStatus
inAmerica
oftheUnited
ofFederalism
D.C., November
(Washington,
1986);andthePresident
States,"ExecutiveOrder12612"(Washington,
D.C., 26 October1987).
to thepresident
andtheCongress
'7Seethecouncil'ssecondreport
published
May 1987in
tenvolumes-a summary
volumeand a separatevolumeon eachof theninecategories.
'8SeeAlanPisarski,
D.C.:
Streets,
Roads,andBridges(Washington,
ReportonHighways,
NationalCouncilon PublicWorksImprovement,
May 1987).
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108

Publius/Summer1988
FIGURE 3
of Criteria
forEvaluating
Roles
Summary
Intergovernmental

federal
Principles
justifying
forrelinquishing
involvement
implementing Criteria
federalresponsibility
sharedresponsibilities

methods
of
Appropriate
shared
implementing
responsibilities

constitutional Federalpurposeis unclear. If thepurposeis to

Enumerated
stimulate
newand greater
powersmustbe exercised.
Federalprogram
is too
federal
activity
emphasizing
smallto havemuchimpact leadership
use:
Fiscalmagnitude
requires
or to be worththecostof
federalrole.
* Categorical
administration.
grants
* Cooperative
candimension
Multistate
agreements
* Directfederalloans
otherwise. Federalroleis minor
notbe addressed
* Loan guarantees
relative
to stateand local
* Tax policy
is needed roles.
Uniform
activity
nationwide.
If thepurposeis simply
to
is
Nonfederal
financing
assured,and adefeasible,
helpsupportcommonpurNegative
among
spillovers
stateor
or quate(perhapsincluding
statesmustbe prevented
poses(emphasizing
localleadership),
use:
redressed.
generalfederalsupport
grantsto stateswithlow
* Blockgrants
or effectiveness fiscalcapacitiesbackedup
Efficiency
for * GeneralRevenueSharing
can be
of programs
bystateresponsibilities
bya
easinginterlocal
disparities).
significantly
improved
If thepurposeis to require
federalrole.
Nonfederal
(emphasizresponsibility certainactivities
use:
fiscal
of resources wouldmeangreater
Redistribution
ingfederalleadership),
acrossthenationis needed and programmatic
* Directregulation
forgeographic
or
discipline.
* Conditional
grantsor
equityand
demographic
loans(categorical
mechanisms
effectiveness
grants
(in(this Devolution
program
includesemergency
measures) arebest);makes"voluncludingtransition
attached
are feasible,
tary"regulations
equitable,and
responses).
to financial
assistance
simple.
irresistible
A Report
SOURCE: NationalCouncilon PublicWorksImprovement,
FragileFoundations:
D.C.:
tothePresident
andtheCongress
FinalReport
PublicWorks,
onAmerica's
(Washington,
U.S. Government
Office,February
1988),p. 84.
Printing

as toproposethat
havebecomeso frustrated
within
theirborders,
collected
TheReagan
andjunkthefederal
program.
theycollectthesetaxesthemselves
blockgrants
thatwouldreducefederal
hasproposedhighway
administration
and funding.
responsibilities
werealso foundto be inthemidstofconsiderable
Masstransit
programs
a cleartieto a nationalurbanpolicyor cleargoals
Without
controversy."9
has experienced
theprogram
or urbanmobility,
foreconomicdevelopment
and
byblockgrants,
increasingly
budgetcuts.Itisbeingdelivered
significant
to
A controversial
is beingpushedtowardprivatization.
proposalpresented
TheNation'sPublicWorks:
(Washington,
ReportonMass Transit
19SeeTheUrbanInstitute,
D.C.: NationalCouncilon PublicWorksImprovement,
May 1987).
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PublicWorks

109

theNCPWI wasto complete

thetransition
to a blockgrant,andultimately
witha federalblockgrantforlocalhighways
combinethatprogram
as the
of
to
means shifting
greaterresponsibilitystateand local governments.
inthe1930sand
andairways
Federalairports
beganinformally
programs
in the1940s.Theseprograms
wereformalized
arefundednowthrough
the
federal
andAirways
TrustFund.Perhapsthelargest
issue,presently,
Airports
is theaccumulation
of unobligated
balancesin thetrustfundwhileneeds
oftheprogram,
go unmet.In itsrecentreauthorization
Congressprovided
fora reduction
in therevenues
goingintothetrustfundifthesebalances
remain
fundstothoseairport
andnoise
high.Otherissuesconcern
retargeting
abatement
or impossible
to supportthrough
airprojectsthatare difficult
freedom
toestablish
headtaxes,and
portfees,givingself-financing
airports
thestateroleinsystem
federal-aid
expanding
planning,
funds,and
allocating
helpingto resolvesitingand noiseissues.
Intermodal
wasfoundtobe crucialtoefficient
movetransportation
freight
mentandinternational
such
considerations
have
However,
competitiveness.
beenfallingthrough
thecrackssincethederegulation
of trucks,
railroads,
and airlines.20
Dramaticallyfewerdata are collectednow on freight
andthereis no pointofaccesstogovernment
wheretheseissues
movements,
can be raisedand pursuedeffectively.
The issuesarenationaland internationalinscope.Theproposalpresented
tothecouncilwasforfederal
governmentleadership
in structuring
an intergovernmental
and public-private
effortto addressthisissue.
Watersupplysystems
havejustcomeundera heavynewfederal
mandate
to becomemuchmorepure.21Thismandateis unfunded.
The assumption
seemsto be thatwaterbillscan compensate.
The proposalpresented
to the
councilwas to establisha federalrolein mandating
full-cost
pricing.
Waterresources22
and wastewater
treatment23
have
programsrecently
beenseton newcoursesthatmaybearwatching.
The newcost-sharing
reforwaterresources
environmenquirements
projects,
alongwithincreasing
tal delays,tendto diluteleadership
and accountability.
The remedial
proto thecouncilwasto establish
an intergovernmental
issueposal suggested
and coordinating
monitoring
body.
The moveto decentralize
wastewater
to thestates
funding
responsibility
funds
will
loan
be
to
watch
for
itsfinancial
through
revolving
interesting
as
well
as
lessons
that
be
learned
for
in
use
decentralizadequacy
any
might
other
ing
programs.

20SeeJosephS. Revisand CurtisTarnoff,TheNation's Public Works:Reporton Intermodal

D.C.: NationalCouncilon PublicWorksImprovement,
Transportation
(Washington,
May 1987).

21SeeWade MillerAssociates,The Nation'sPublic Works:Reporton WaterSupply

(Washington,D.C.: National Council on Public Works Improvement,May 1987).

22SeeKyle Schillinget al., The Nation'sPublic Works:Reporton WaterResources

(Washington,D.C.: National Council on Public Works Improvement,May 1987).

23SeeApogeeResearch,
Inc., TheNation'sPublicWorks:Reporton Wastewater
Manage-

ment (Washington,D.C.: National Council on Public Works Improvement,May 1987).

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110

Publius/Summer
1988

wasteprograms
newandunderdeveloped
Solidandhazardous
arerelatively
Environmental
withrespect
to water
the
federal
government.24
by
regulation
arethetriggers
thefederal
andairpollution
thathaveinvolved
government
inthesetraditionally
localandprivateactivities.
Findingadequatedisposal
a state-local
hazarsites(predominantly
up existing
responsibility),
cleaning
in cooperation
dous disposalsites(a newfederalSuperfund
responsibility
and reducing
theamountof wastethatneedsto
withstatesand industry),
arecomplementary
be disposed(a largely
ignored
responsibility)
approaches
It wasproposedto theNCPWI thatthe
coordinated.
thatneedto be better
becauseofthe
takea leadership
roleinwastereduction
federal
government
theamountsand types
to modify
industries
needto workwithnationwide
forrecycled
materials.
of wastesproducedandto ensureadequatemarkets
of a national
Each of theseissuesis complexand important,
deserving
thecouncilcouldaddressthemonlyin a
studyof itsown.Consequently,
fashion.
general
THE COUNCIL'S FEDERALISM POSITIONS

in thefederalsystem
The council'sreportclearlycallson all governments
of
in
the
nine
vital
roles
tocontinue
categories publicworksitstudied.
playing
roles
be clarified
to identify
these
that
the
council
responHowever,
urged
Thecouncilwent
more
for
and
sibility accountability performance directly.
on to stateor implythat:
* The federalgovernment
itslead roles
and strengthen
shouldcontinue
inland
inthefieldsofhazardouswaste,airtraffic
control,
waterways,
intermodal
of interstate
significance,
highways
deep-port
dredging,
minimum
national
of
theestablishment
perfortransportation,
freight
mance standardsfor environmental
protection,
major capitalinandoverallcoorinfloodcontrolandshoreline
vestments
protection,
dinationof waterresources
programs.
* Thefederalroleshouldbe supportive
ofstateandlocalgoalsinother
of publicworksstudiedby thecouncil.
categories
in financing
* The federalgovernment
shouldremaina reliablepartner
on state,local,and
restraints
publicworksbyavoidingunwarranted
stateandlocalaccesstotheprivate
financing
options;protecting
private
capitalmarketsforpublicworkspurposes,especiallyforthenine
thefederaltrustfundsin
studiedbythecouncil;spending
categories
ofitsdeficit
control
andgetting
andpredictable
a moretimely
fashion;
in thebudgetprocess.
so thatpublicworkswillnotbe shortchanged
* Federal mandatesin the public works field should be administered
means of complianceby stateand
flexibly-allowingcost-effective

F. Clunie,R. W. BeckAssociates,TheNation's Public Works:Reporton Solid

24SeeJeffrey
Waste(Washington,D.C.: National Council on Public WorksImprovement,
May 1987). See
also Apogee Research,Inc., TheNation's Public Works:Reporton Hazardous WasteManagement(Washington,D.C.: National Council on Public Works Improvement,May 1987).

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PublicWorks

*
*

111

Thesemandatesalso shouldbe accompanied

local governments.
by
federalassistanceto theextentthattheyinvolvecostsof enforcing
orcoststhatexceedthebenefits
tothejurisdictions
federal
regulations
thatprovidetheservice.
Thefederal
shouldinitiate
a newnationalcommitment
to
government
Thecontinuing
accelerate
needpublicworksinnovations.
organization
ed to coordinate
ofthisinitiative,
implementation
long-term
funding,
oftheresearch
andapplications
ofindividual
setting
agenda,andpursuit
and administered
projectsshouldbe established
cooperatively
bythe
inrelated
involved
efforts.
Theseinterests
should
manyinterests
already
includegovernment,
and academia.
industry,
Federalactionis neededto supportand stimulate
theeducationand
ofpublicworksprofessionals
froma variety
ofdisciplines
and
training
specialties.
Statesshouldhavethelead responsibility
forhighways
of statewide
nonfederal
dam
significance,
safety,major capital financingof
wastewater
treatment,
airportsystemplanning,and sitingof waste
facilities.
disposal
Stateshavea specialresponsibility
to ensurethatlocal governments
havethelegal,financial,
and personnel
organizational,
managerial,
to
meet
their
own
works
Stateoptions
capacities
public
responsibilities.
forenhancing
theselocalcapacities
mayincludestateaid,theauthorizationof regionalapproachesand interlocal
and greater
cooperation,
degreesof local homerulein somecases.
Statesshouldseekto smoothoutpublicworksrelationships
between
stateand local governments
and amongthevarioustypesof local
andspecialdistricts.
counties,
governments-including
municipalities,
Wheretheyhavenotalreadydoneso, statesshouldcreateandusestate
ACIRs to helpachievethisgoal.
Publicworksprograms
undertaken
byboththestateandfederal
governmentsshouldincludespecialprovisions
forhelping
smalllocalgovernmentsto meettheiruniquefinancial
and managerial
needsin theinfrastructure
field.
Local governments
and regionalorganiza(including
specialdistricts
tionsin somecases)generally
shouldhavethelead responsibility
for
localstreets
androads,publictransit,
individual
water
airports,
supply
wastewater
treatment
and
systems,
ports,urbanstormwater,
facilities,
solid-waste
for
state
disposal.Exceptionsmightinclude, example,
and operationof certainairports
or waterports.
ownership
CONCLUSION: AN UNFINISHED AGENDA

What the NCPWI has supplied is a frameworkforthinkingthroughthe

federalism
of publicworksprograms.In concludingthatAmerica
implications

is notinruins,ithasrecommended
a measured
toserious
infrastrucresponse

turedeficiencies.
Unlikewhatmighthavebeenexpectedfroma majornational
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112

Publius/Summer
1988

callformassive
studyofthissorta decadeortwoago,thereis no automatic
The councilhas notrecommended
theturnback
of
newfederalprograms.
neither
has
it
ruled
federal
or
revenue
sources
but
anyspecific
responsibilities
fororagainstaddioutturnbacks.
thereareno recommendations
Likewise,
forspecific
federal
andnorecommendations
aboutpaying
tionalblockgrants,
research
and
or
the
for
much
needed
of
mandates, picking
expansion
up tab
or professional
However,
development
programs.
development
programs,
thecouncilhas laidall theseissueson thetableforthepublicworkscomto address.
munity
mustseekitsowndefinition
As WoodrowWilsonwrote,eachgeneration
inAmerica's
balanceamongthegovernments
ofnational
purposeandproper
in thefield
federalsystem.25
Clearly,thisis a timewhenthatis necessary
thenationtothatneed.
ofpublicworks.Thecouncilhassoughtto sensitize
thecounhavefollowed
Manygroupsbothinsideandoutsideofgovernment
the
of the
from
works
have
cil'sworkclosely.Although
top
slipped
public
and
nation'spoliticalagenda,thereis plentyof roomforall governments
needsfortheinto fulfill
demonstrated
theprivatesectorto worktogether
thatwillkeepAmerica'seconomyvitaland itsqualityof life
frastructure
on therise.

in the UnitedStates(New York: Columbia

25WoodrowWilson,ConstitutionalGovernment
UniversityPress, 1917), p. 173.

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