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State and Local Government / Transportation

New Study Shows Role for Private Investment in Missouri Transportation

By Eric D. Dixon on Feb 27, 2008

A new study, jointly produced by the Show-Me Institute and the Reason Foundation, examines the relatively new funding paradigm of public-private partnerships and how such arrangements may benefit Missouri’s public transportation infrastructure. The study provides an overview of the types of public-private partnerships that can be utilized for transportation projects, including their benefits and best practices, and responses to common concerns. It also explores how public-private partnerships can be used not only to upgrade, modernize, and expand Missouri’s road and bridge network, but also to improve the delivery of transit services.

As cars have become more efficient, the fuel taxes used to fund the state’s highways have leveled off — but the transportation needs of the state have not. Other states have looked to the private sector to provide transportation infrastructure, as a means of augmenting gas taxes. This new study, titled "Missouri’s Changing Transportation Paradigm," takes a detailed look at the transportation issues that Missouri will face in the future, and surveys the ways in which public-private partnerships have been used as a tool to help solve similar problems elsewhere.

The study’s authors — David Stokes, a policy analyst at the Show-Me Institute, Leonard Gilroy, the director of government reform at the Reason Foundation, and Samuel Staley, Ph.D., the director of urban growth and land use policy at the Reason Foundation — outline the many benefits of public-private partnerships. When undertaken properly, these benefits may include: delivery of tomorrow’s infrastructure today, cost savings, greater access to capital, greater efficiency, performance of quality improvements, changing the incentive structure, enhancing risk management, spurring innovation, and increased flexibility.

The full study is a bit of a lengthy read, as such studies go, so of course we’ve produced a four-page policy briefing that condenses the study’s arguments and analysis into a more easily digestible format.

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Eric D. Dixon

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