Leveraging California’s Transportation Investments to Achieve Triple Bottom Line Return

At all levels of government the transportation infrastructure sector comprises one of the largest arenas of public spending.  In California, state transportation dollars are estimated to grow more than $20 billion in 2018-19, according to the Legislative Analyst’s Office 2018-19 Budget Report.  This is in part due to the recent passage of SB 1 (Beall), the Road Repair and Accountability Act, which increases our transportation funding by $54 billion over the next decade for “fix it first” highway and road projects, bike and pedestrian infrastructure, public transit, and other uses. With many new transportation projects underway in California, and more on the horizon, now is the time to leverage these massive investments to achieve triple bottom line returns and maximize positive mobility, safety, and economic outcomes throughout the state.

Transportation plays a powerful role in shaping access to opportunity and creating healthy, socially vibrant communities. The type and location of projects that our state and regional transportation agencies choose to fund directly determine whether communities are able to access critical amenities and resources and breathe clean air, which impacts the health and productivity of all residents.

With the passage of SB 1, California has taken an important step to provide much needed resources for public transit and active transportation, and target planning dollars to our communities of highest need.  California should build on this momentum by further aligning state transportation programs with equitable investment goals and prioritizing the mobility and safety needs of low-income people of color living in neighborhoods that lack adequate transit service and basic pedestrian and bicycle infrastructure. State investments should also be mandating strong public participation requirements to ensure that resources are supporting projects that provide meaningful, effective transportation solutions to community identified priorities, and to ensure that displacement, increased traffic pollution, and other harmful impacts, are avoided.  This is especially important as SB 1 contains a harmful provision that exempts diesel trucks from stronger air quality regulations, allowing them to continue polluting in communities already overburdened by poor air quality.

New investments in transportation infrastructure also provide an opportunity to bring important economic benefits  to disinvested communities in the form of workforce development, well-paying jobs and contracting opportunities. As low-income communities and people of color continue to struggle with persistent poverty and high levels of unemployment, the state can and should do more to target transportation jobs and careers to individuals facing multiple barriers to employment. SB 1 includes an annual investment of $5 million for pre-apprenticeship programs that focus on the recruitment of people of color and disadvantaged youth, which will support their preparation and pathway into apprenticeships and other credential attainment programs.  While this is a critical on-ramp to good paying jobs in the construction industry, the real economic impact of these workforce investments won’t be fully realized unless we ensure that these same communities are connected to the employment opportunities that are created from building, operating, and maintaining our transportation system. This is critical for strengthening our families and neighborhoods, and boosting regional economies through the increased purchasing power of women and men who secure and maintain employment.  It also comes at a time when we need California to assert leadership and commitment toward equitable employment outcomes and protect against the current federal administration’s decision to eliminate the Department of Transportation Local Hire Pilot program in 2017.

To increase job access in the transportation sector for those that need it the most, the state should prioritize projects that employ effective strategies for recruiting, training, and hiring local, low-income, underemployed, and underrepresented youth and adults such as community workforce agreements, project labor agreements with targeted hire commitments, and partnerships with community based training programs. An additional component that a targeted hire policy should address is the widespread racial discrimination and implicit biases in hiring that exists throughout our institutions. Based on the demographic breakdown of many jurisdictions, specific populations, including the African American community, are often underrepresented in industries such as construction, even when workers have successfully completed their training programs. Therefore, these policies must include criteria and/or a status for underrepresented workers to ensure that the workers who are recruited and hired reflect the workforces of our regions.  Lastly, in order to foster strong accountability and ongoing monitoring of these policies, they should require a minimum of 30 percent of the work hours to be performed by individuals with barriers to employment, and robust project reporting data on worker demographic information and job quality.

California has an opportunity to lead the nation in advancing a more equitable public infrastructure system that ensures everyone has the resources and supports they need to contribute and thrive.  By taking advantage of our state’s enormous transportation arena to achieve multiple benefits in all communities, we can secure a future of shared prosperity.

Resources:

California’s Infrastructure Needs a Makeover for a Climate Resilient Future

The science is clear. Our climate is changing. In California, we are already feeling the impacts of climate change in the form of more regular and longer lasting droughts, flooding, wildfires, higher temperatures, and impacts on our fisheries, forests, wildlife, and other natural resources. As global temperatures continue to rise, all Californians will feel the impacts. However, communities of color and low-income communities, those who have born the negative consequences of our fossil fuel economy, will be hit first and worst by climate change.

This fact has serious implications for our state’s future.  While the United States is projected to become majority people of color by 2042, California hit that mark decades ago. To secure an equitable and prosperous future for California, implementing strategies that allow our communities to thrive—even in the face of a changing climate—is critical.

As our earlier blog noted, smart, targeted investments in infrastructure can build community resilience by expanding economic opportunity, improving community health, and connecting people to critical services.  Unfortunately, California’s infrastructure is crumbling, and we need significant investments over the next decade to repair, upgrade, and expand our infrastructure. Last year, state lawmakers committed to getting started by making new investments in transportation, climate infrastructure, and housing. This year, the legislature and voters are considering a range of proposals that would create another set of investments in water, parks, and housing. While this represents a fraction of what is necessary, they present real opportunities to innovate and think about how we build infrastructure that can physically withstand climate change, and, lift up disinvested communities so that they are able to thrive even as our climate changes. So, how do we make sure we take advantage of this opportunity? In addition to the principles we outlined earlier this week, here are four ideas that we think are important:

 1. Include Impacted Communities in Infrastructure Decision Making from Planning to Completion

Frontline communities have been left out of the conversations and decision-making around the planning and designing of their own communities, leaving their destinies to the often discriminatory and profit-driven practices of corporations and government representatives who have little knowledge of their unique challenges and needs. As a result, these communities and their members are left fighting for their right to live healthy and free from pollution with access to opportunity. To begin reconciling this, California should ensure that low-income people, communities of color, and other populations that are vulnerable to climate change are provided with meaningful opportunities to shape infrastructure decisions that will impact their lives. Furthermore, California should provide direction and resources to local and regional agencies on integrating climate justice in planning efforts, policy development and implementation, and distribution of resources with an emphasis on intentionally engaging and including frontline communities throughout the process. Ensuring early, continuous, and meaningful participation in the development of policy and funding decisions will lead to more thoughtful, effective, long-term solutions.  
 

  1. Promote Interagency Coordination to Build Climate Resilience

In Built to Last: Challenges and Opportunities for Climate-Smart Infrastructure in California, our partners at the Union of Concerned Scientists note that the overarching challenge to California effectively supporting a climate resilient future is that we do not currently have a state level body dedicated to addressing this problem and providing coordination, data, and technical support to other state agencies as well as to local and regional agencies. To address this, they recommend that California should establish a well-resourced center that provides agency staff with actionable climate related information and guidance that is updated regularly. The center would serve in a coordinating role, would respond to requests for technical assistance, provide support to state agencies working to incorporate climate resilience in their programs and decisions. Finally, the center could serve as a resource to local agencies and technical assistance providers working with communities to develop resilience strategies. Establishing a centralized hub of information and capacity would strengthen a network of climate resilience advocates, nonprofits, government agencies, and policymakers to ensure a coordinated effort towards climate resilient communities across the state.  
 

  1. Conduct Vulnerability Assessments

We know that low-income communities and communities of color will be hurt first and worst by climate change. However, California does not currently have a clear picture of how different communities will be impacted by climate change, where infrastructure investments can increase community resilience, or where existing infrastructure may be prone to failure. To prepare for the future, California should take the recommendations of the Climate Justice Working Group and conduct regional cross sector vulnerability assessments that:

    • Identify and prioritize climate change related threats to the region’s frontline communities.
    • Assess how existing critical infrastructure and public services will handle changing conditions, and how the state can develop new and strengthen existing infrastructure and services to enhance climate resilience.
    • Provide direction and resources, such as funding and capacity building, to local and regional agencies on integrating climate justice in planning efforts, policy development and implementation, and distribution of resources.
    • Ensure these local and regional agencies are also engaging frontline communities in their research, planning, implementation, and decision-making.
       
  1. Build Infrastructure to Withstand the Impacts of Climate Change

It seems obvious, but building infrastructure that can actually withstand the effects of climate change is important to making sure money is well spent and making sure the infrastructure functions when disasters hit. Government agencies, utilities, investors, and other infrastructure decisionmakers typically do not include climate related cost and benefit information when evaluating infrastructure investments and infrastructure codes and standards frequently do not consider what the science tells us about our changing climate. This omission results in projects that are ill-equipped for longer-term climate stressors, and is a missed opportunity to avoid damages and maximize cost and risk saving. State and local governments and agencies should update their assessments and standards to better integrate climate risk considerations, as well as the benefits and opportunities of climate-smart projects. These changes should incorporate the latest climate data and technology and should be done with an eye towards protecting our most vulnerable residents. This will ensure sound decision-making and will result in projects that will continue to serve us for many decades to come. 

From the current President’s withdrawal from the Paris agreement, to attacks on the EPA, and the intensifying effects of climate related natural disasters, there is barrage of challenges to building climate resilient communities and infrastructure.  However, California is already positioned as a global leader on climate change and has a major opportunity to capitalize on the advancements we have made to date. But we must demand climate smart planning and decision-making from our state and local policymakers. Climate smart improvements to our state's infrastructure are long overdue and will provide the literal foundations for our communities to not only survive, but thrive, in the face of a changing climate.

National Infrastructure Week: Equitable Infrastructure Investments Can Transform Low-Income Communities and Communities of Color

At PolicyLink, we know that smart, targeted, equitable investments in infrastructure can have a transformative impact on low-income communities and communities of color. That’s why we are excited to join equity infrastructure advocates in California, and throughout the nation, for National Infrastructure Week—a time to collectively garner more public awareness and advocacy to support increased investments in infrastructure.

This week we will be posting a new blog each weekday exploring infrastructure equity in our home state of California. We encourage you to share our blog posts with your network and follow the conversation on Twitter using the hashtag #Build4Equity. Also, join the Union of Concerned Scientists and PolicyLink for a twitter chat on Wednesday, May 16 @ 12 pm PT/ 3 pm ET. The discussion will focus on the role of climate smart infrastructure in building community resilience, advancing climate justice, and fostering an inclusive economy. Register today and follow the chat on twitter at #Build4Resilience.

California’s changing demographics and the need for equitable growth

Over the last several decades California has undergone a radical demographic change. Today, people of color represent over 60 percent of all Californians. Because youth are at the forefront of this demographic transformation, there is a racial generation gap between old and young: 62 percent of Californians over age 65 are White, and 73 percent of those under age 18 are of color. Today’s elders and decision makers are not investing in the same educational systems and community infrastructure that enabled their own success. This investment gap puts all of California’s children—and the state’s economy—at risk. A growing body of research tells us that inequality is not only bad for those at the bottom of the income spectrum but subsequently puts everyone’s economic future at risk. Greater income equality contributes to more sustained economic growth and to more robust growthCalifornia’s ability to maintain its leadership in the global economy hinges on its ability to remove barriers and create the conditions that allow all to flourish.

Investing in California’s Future

Unfortunately, California is not doing well. Our state has some of the highest income inequality in the nation and 14 million Californians—over 36 percent of our population and disproportionately people of color—live at or near the poverty level in communities that frequently lack the basic infrastructure of a healthy place. Decades of disinvestment, deeply entrenched patterns of discrimination, and a host of tax and land use laws affecting development patterns have isolated residents of these communities from quality opportunity and services, exposing them to environmental harms, and ultimately shortened lifespans.

Infrastructure is vital for sustaining and reinforcing community. The networks, roads, schools, drinking water, sewer systems, facilities, and properties that comprise public infrastructure define neighborhoods, cities, and regions. Unfortunately, too many Californians live in communities where critical infrastructure is deteriorating or is completely lacking. Residents of these infrastructure deficient places may be unable to access safe and affordable drinking water or wastewater treatment services; connect to good schools and jobs; benefit from libraries, health-care facilities, and emergency services; or safely walk, bike, or play in their neighborhoods. Over the next 10 years, an estimated $750 billion is needed to upgrade and repair our existing facilities and meet the needs of our growing population. While this problem is affecting the entire state, the duel burden of poor infrastructure choices in the past, and insufficient investment in infrastructure for the future falls heaviest on low-income communities and communities of color—the very people who constitute most of our population.

Recently, California has begun to get serious about tackling our infrastructure problems by dedicating new funding to transportation, climate infrastructure, water, schools, and housing. However, in most instances, equity has not been sufficiently incorporated into these discussions or woven into policies and programs. To ensure that our infrastructure investments contribute to a future of shared prosperity we must make sure our investments are guided by principles that expand equity for our most disinvested people and places. Here are four recommendations that can set us in the right direction.

Recommendations:

  • Choose strategies that promote equity and growth simultaneously. Equity and growth have traditionally been pursued separately, but the reality is that both are needed to secure California’s future. The winning strategies are those that maximize job creation while promoting health, resilience, and economic opportunity for low-income workers and communities of color.
  • Target programs and investments to the people and places most left behind. Public resources must be spent wisely. Focusing the state’s programs and investments on climate smart infrastructure that upliftsthe low-income families and communities that have been left behind will produce the greatest returns.
  • Assess equity impacts at every stage of the policy process. As the policy process begins, and throughout, ask who will bene­fit, who will pay, and who will decide; and adjust decisions and policies as needed to ensure equitable impacts.
  • Ensure meaningful community participation, voice, and leadership. California’s new majority needs avenues for participating in all aspects of the political process—from the basic act of voting to serving on boards and commissions to being elected as state leaders. Recognizing historical and ongoing patterns of exclusion and being intentional about establishing transparent processes for low-income communities and communities of color to meaningfully shape infrastructure decisions will lead to better programs and projects.

A half-century ago, California set a precedent for investing in its future—and succeeding. Under the leadership of Republican Governor Earl Warren and Democratic Governor Pat Brown, the state built a world-class education system and infrastructure that enabled a poor, uneducated population to create the world’s ninth largest economy. Bold leadership is needed to build the next economy, and having an equitable and inclusive society results in shared prosperity.

We invite your feedback and ideas on our Job Guarantee principles, and hope you will join in working to move this critical policy forward.  

Register for the launch of our webinar series:

Wednesday, May 30 from 10 – 11 PT / 1-2 ET.
The Job Guarantee: Cornerstone for an Equitable Economy 

Speakers include:

April 2018

Solving the Housing Crisis Is Key to Inclusive Prosperity in the Bay Area

Overview

This report presents new data illustrating how the combination of rising rents and stagnant incomes is straining household budgets and stifling opportunity for all but the very wealthy in the nine-county Bay Area, raising serious questions about the sustainability of the region’s economy. The report was developed as part of the Bay Area Equity Atlas partnership between PolicyLink, the San Francisco Foundation, and the Program for Environmental and Regional Equity at the University of Southern California (PERE). Key findings include:

  • Between 2000 and 2016, rents increased 24 percent while renter incomes rose just 9 percent.
  • There are 480,000 economically insecure renter households in the region that are paying $9,000 too much for housing per year, on average.
  • A family of two full-time workers each making $15/hour can only afford market rent in 5 percent of Bay Area neighborhoods.
  • 92 percent of these neighborhoods affordable to working-class families are rated "very low opportunity" on a comprehensive index of neighborhood opportunity. 

How are people using this data? The analyses in this report served as the basis for factsheets and maps developed with Working Partnerships, Urban Habitat, and EBASE to support their tenant protection policy campaigns. The Bay Area Economic Council used this data in their report analyzing policy solutions to the housing crisis in Alameda County. KQED Forum host Michael Krasny used it to open up his conversation with housing activist Randy Shaw about his book Generation Priced Out. The Partnership for the Bay's Future used our data to frame the need for investment in housing solutions.

Media mentions: Housing Is Key to Bay Area's Economic Future, Study Finds (Philanthropy News Digest), New Report Examines the Bay Area's Broken Housing Market (Planetizen), World Journal

April 2018

Advancing Employment Equity in Alabama

Overview

850,000 of Alabama's working-age adults are economically insecure and struggling to find good jobs: jobs that pay enough to support a family, offer safe working conditions, and provide meaningful opportunities to move up the economic ladder. Advancing Employment Equity in Alabama describes why employment equity — when everyone who wants a job can find one — is critical to Alabama's economic future and offers a policy roadmap to achieve employment equity. It is based on data analysis and modeling of a "full-employment economy" as well as policy research and focus groups conducted by PolicyLink and the Alabama Asset Building Coalition. With full employment for all, Alabama's economy would be $3.9 billion stronger every year. However, to realize these gains, state leaders must be willing to eliminate barriers to employment through efforts such as expanding public transportation options, banning the box on criminal background checks, and supporting the growth of minority- and women-owned business enterprises. This is the second of five briefs about employment equity in southern states co-produced by PolicyLink, Program for Environmental and Regional Equity (PERE) at the University of Southern California, and local partners with support from the W.K. Kellogg Foundation. Download the report, detailed methodology, and fact sheet "Employment Equity: The Path to a More Competitive Alabama."

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