Ohio DOT Promised Billions in Road and Bridge Construction It Can't Pay For

Anyone concerned about the 15 Trillion dollar reported Federal deficit should know that it's the tip of a much larger iceberg of looming costs most people don't know about.

Remember, the fight over pedestrian access to the brand new Inner Belt Bridge, Cleveland was gonna get? Surprise, it now looks like a new bridge may not be built till 2020 or later even though the current one may have serious structural issues!

Turns out the State transportation folks just wish listed important projects with little knowledge of how they might be paid for.

For years, the state has "over-programmed" for the money available, Wray said. Project commitments total $3.3 billion through 2017, but only $1.6 billion in revenues is projected for construction, he said.

Meanwhile, revenue from federal and state gas taxes has remained flat, while the costs of maintenance and construction have inflated, he said.

He expects disappointment not only in Cleveland but across the state with the draft list.

The West Shoreway project also doesn't fare well. It is not on the funding list, Wray said, despite a concerted appeal from the city of Cleveland for another $21 million.

Expect this to be an ever growing story. Ironically, in many cases, failing infrastructure offers a grand chance for cities to reinvent themselves in more sustainable ways.

Remember that The West Side Highway, in NY and Embarcadero Freeway in San Fransisco were only removed after partial collapses.

City Of Harrisburg Defaults On Municipal Bond : Vegas Monorail Default Looms

To start with, yes this falls somewhat outside this blog's turf, but the debt elephant at all levels, is becoming harder and harder to ignore--and believe me we have tried. As one blogger on here once said--it's the economy stupid.

"In Harrisburg, which is Pennsylvania's capital and has a population of about 47,000, a March 1 deadline is looming on a payment of $2 million out of the $68 million due this year for the financing of an incinerator plant. The facility has about $288 million in overall debt.

"Bankruptcy is inevitable," Mr. Miller says. "We are in a terrible bind." A budget passed Saturday by Harrisburg's city council didn't include any funds to cover the debt payments, according to the city clerk's office."

Meanwhile in Vegas, the non profit corp which operates the new monorail on the strip, has filed chapter 11 bankruptcy and is almost certain to miss upcoming payments on 600 million in outstanding Muni bonds.

"Ambac Assurance Corp., the bond-insurance unit of Ambac Financial Group Inc., is seeking to have the case converted to a Chapter 9 proceeding. The insurer contends that the company is akin to a municipality. A judge is set to decide on the petition later this month."

Perhaps the most interesting and important case was the Bankruptcy of Vallejo, Calif., which is trying desperately to renegotiate the labor contracts of city workers, after a sharp drop in property values crushed the tax base.

Who knows how this will all play out, but government debt and unfunded obligations must be an important factor in all our urban decisions.