Local government infrastructure investments spur hope for post-pandemic, climate-friendly economic recovery

City infrastructure systems are a critical part of the larger network that serves and benefits the entire state. Every dollar invested in public infrastructure produces more than $2 dollars in economic activity. Thanks to the Legislature’s significant investment into local government infrastructure systems, a post-pandemic economic recovery seems more tangible than ever before.

The state’s biennial capital and operating budgets made significant investments into stormwater and solid waste financial assistance, drinking water and water pollution control revolving loan programs, and multiple capital financing programs within the Department of Commerce. Most notably, however, was the $129 million investment into the Public Works Trust Fund—the largest appropriation since the account’s diversions began during the Great Recession. For more information on capital and operating budget appropriations, visit our budget matrix; for more information on broadband infrastructure investments, visit our broadband session wrap-up article.

The Legislature also included a $1 billion investment into rental and utility assistance. However, the funding appears to be intended primarily for rental assistance. It remains unclear how these funds will be distributed between rental and utility assistance, as well as the specific programs and qualifications needed to receive the assistance. In addition to the $1 billion, the budget did include $100 million towards Low Income Utility Assistance. Of that amount, $80 million was allocated for the existing LIHEAP program and $20 million was allocated towards low-income assistance for water and wastewater through the Department of Health.