A recent study by the Economic Development Research Group of Boston shows Utah could nearly double its return of investment on the state's transportation infrastructure by 2040. Simply put: For every dollar spent on transportation infrastructure, the state could turn around an ROI of $1.94.
"Anytime you can trade someone $1 for $1.94, you make that trade," says Salt Lake Chamber of Commerce President and CEO Lane Beattie.
According to the study, which can be read here, if state and local governments and transportation agencies fully implement Utah's Unified Transportation Plan 2011-2040, the result will be a dramatic and positive economic impact over the next three decades. In fact, if the Unified Transportation plan is fully funded, the state would see a return on investment of nearly 183,000 new jobs created in Utah by 2040. Those would include 55,000 construction jobs and more than 91,000 other jobs created by improvements in transportation performance. Another 17,000 jobs would be created by enhanced access to markets for Utah firms, and more than 19,000 jobs would be added by new businesses attracted to Utah because of improved transportation conditions.
"If you look at the sheer numbers, the outcome is pretty impressive," says Marty Carpenter, executive vice president of communication at the Salt Lake Chamber. The study projects the state would experience:
- $130.5 billion in additional household income
- $183.6 billion in additional gross domestic product
- $22 billion in additional tax revenues from economic growth
As Beattie points out, Utah would receive an estimated return on investment of $1.94 in non-construction GDP gain per $1 invested in transportation infrastructure. That is based on the analysis of private sector transportation costs that can be saved if the Unified Transportation Plan is implemented as envisioned. The comprehensive plan, which can be read here, has four strategic goals: preserve infrastructure, optimize mobility, improve safety and strengthen the economy.
"The Utah Unified Transportation Plan is really quite detailed," says Carpenter. "It covers everything from smaller roads, bike paths and big rail projects--all of the things we should look at doing in order to have the transportation infrastructure that will support the population growth we can expect."
The Economic Development Research Group's study was commissioned by the Utah Transportation Coalition, a group started by the Salt Lake Chamber in 2012 to bring transportation stakeholders together with businesses that recognize the impact transportation infrastructure will have on their long-term ability to succeed. Carpenter says the coalition is working with elected officials, stakeholders and other businesses to help them understand there is a gap between the funds the state has committed for transportation infrastructure, recognize what is needed to fully fund the Unified Transportation Plan and to help them find ways to close the gap.
Utah currently has about $43 billion committed toward transportation infrastructure between now and 2040, when the Unified Transportation Plan would be finished. But, he says, a total of $54.7 billion is needed to create a transportation system that will allow Utah's economy to reach its full potential.
"Our current funding leaves us a shortfall of $11.3 billion--the gap between what we need to have to maximize our return on investment and what we actually have planned," he explains. "Based upon the study, if we can come up with that additional $11.3 billion, we get an extra 182,000-plus jobs created by 2040. Seventy percent of those jobs are attributable to improved transportation performance, while 30 percent are from construction spending."
This isn't the first time the Salt Lake Chamber has taken an active role in pushing for funds to improve Utah's transportation infrastructure. The Chamber played a critical role in the passage of Proposition 3 in 2006, which accelerated the construction of the Mountain View Corridor and helped fund five TRAX light rail projects in Salt Lake County and the FrontRunner commuter rail project from the Intermodal Hub in Salt Lake into Utah County.
"As a business association, we recognize that the long-term economic strength of our state depends on our ability to maintain and continue to build a strong transportation infrastructure, particularly because we know our population is going to double in the next 30 years," says Carpenter. "With that knowledge comes the responsibility to speak today about what the congestion could look like and what we can do about it. We must work today to make sure gridlock doesn't happen."
Utah is currently in a great position, he adds, because the state has invested well over the past decade and is ahead of the curve on transportation. Over the past 10 years strong partnerships have been forged, along with a strong understanding of the importance of transportation infrastructure. Nonetheless, without adequately funding the Unified Transportation Plan, Utahns can expect increased transportation stress and continued air quality problems as the population grows to an anticipated 3 million people along the Wasatch Front over the next three decades.
While adding more roads is only part of the transportation plan, Carpenter says it would be non sequitur for some people to connect additional roads with improved air quality. "You are going to have people in cars regardless," he says. "Giving them more transportation options is essential, but so is keeping them from sitting in congestion. Cars sitting on over-crowded roads are still burning fuel and putting emissions in the air. If we keep cars and trucks moving as efficiently as possible, it saves commuters and businesses money and reduces the amount of emissions they put in the air."
Carpenter says federal funding is declining as they work toward the $11.3 billion shortfall in transportation investment, but the study lays out a variety of alternative concepts. The Transportation Coalition, he notes, hasn't settled on one particular mechanism. "We are more interested in showing the Legislature a number of options they have and to give our best counsel as to what those options will entail," he says. "Ultimately, I am sure as that field of options narrows we'll take a position, but at this point that is preliminary. It is more important to help lawmakers understand the issues we face, see what their options are, and present them with good information about the path forward."