Economic Boost? $800 Million in Infrastructure Investments Earmarked by CalPERS

CalPERS has announced that up to $800 million will be earmarked for investments in California infrastructure projects, which should provide the state’s neglected roads, bridges, power transmission lines, and more with some much needed attention. The investments will impact transportation, energy, natural resources, utilities, water, communications and other social support services. With construction jobs lagging greatly, it is hoped such funding will boost the economy; that being said, the investment money will be rolled out over the course of three years so the impact may be less dramatic than hoped for. The Bee points out that “The move reflects big investors' growing appetite for public infrastructure. State and local governments have raised billions of dollars in recent years by selling or leasing major assets – highways, parking systems, and others – to the private sector.”

Rob Feckner, President of the CalPERS Board of Administration, commented that “We remain committed to California’s future and the investment opportunities that run deep between our coastline, mountains and valleys. We are prepared to increase our investments in infrastructure with our first and foremost goal being on investment returns, and a secondary goal of supporting essential community services that are crucial to continued economic development, a safe environment, and healthy schools and communities.”

CalPERS officials noted that investment opportunities would be evaluated on the basis of minimal competition, stable revenues and returns, low operating risk and strong credit. George Diehr, Chair of the CalPERS Investment Committee, commented that “We’re looking for long-term economic value by providing safe, reliable, efficient and high quality services that are vital to California that not only meet our risk-return objectives, but that we believe have the extra benefit of creating jobs and ultimately improving the economic climate.”