Slow Economy, Federal Cutbacks Undermine CIP Growth
By Rebekah Morris and Eric Jay Toll of the Arizona Builder’s Exchange
When the economy falters, one way out of recession has been increased public spending. This has been the rule since the Great Depression. Economists argue whether the conventional wisdom has been the answer for exiting the Great Recession. In any event, the severe reduction in capital spending in the recently enacted MAP-21 federal transportation funding bill combined with Arizona legislature sweeping dedicated highway user funds to non-capital general fund use, potential capital spending dropped out of the budgets.
Tough times slashed project budgets in Arizona for fiscal 2013. “Millions and millions of dollars behind our needs” reports Phoenix, and the dilemma is echoed in Scottsdale, Mesa, and other Valley cities and counties. Financial struggles with the Coyotes and University of Phoenix Stadium parking emptied Glendale’s pot. Audit-discovered shortfalls in Surprise hurt its 2013 program. Every public agency is delaying, deferring and cancelling projects.
Despite the clouds, there are some bright skies.
There are public projects on the docket. Smaller, fewer, but none-the-less, projects to chase, jobs to win, and work to be done. AZBEX compiles them in its first Capital Projects Issue. An annual special supplement, the 2013 edition focuses on the largest agencies and identifies the big projects that’ll be on the market in the coming 12 months.
The AZBEX Capital Projects issue lists major projects approved for solicitations in Fiscal 2012-13 and those firm projects for Fiscal 2013-14. Each listing includes the contact information at the agency with instructions how to reach the staff member responsible for a project’s solicitation.
FIVE YEAR CAPITAL BUDGETS
Below is an example of the level of detail AZBEX subscribers have access to in this special issue. Beyond ADOT’s project information, subscribers had the added benefit of five large cities’ Capital Programs, three county programs, and one regional association’s data, which total another $5.357B in projects over the next five years. Subscribers also received the links direct to the 5-year Capital Programs so a farther range look-ahead can be compiled.
The projects reported are the projects budgeted during Fiscal 2012-13 and are not (a) the total project amount, or (b) a commitment that the project will be carried out during the Fiscal Year.
ADOT is projecting a significant slide in capital projects over the next five years. Although the agency has projected $5.5B over the next five years, the annual budget drops from $1.3B in the current year to $601M in 2017.
Procurement: 602-712-7211. Projects are assigned to a contracting officer months before the actual solicitation is available for review. Contact the office with the project number (preferred) or project name to be connected to the correct person.
Want to see more? This is only one program of ten that AZBEX researchers combed through to put into the Capital Issue! Subscribe today to receive this special section with all the largest agency’s Capital Programs and links to the five-year plans.