Thursday, April 10, 2008

Bond Bill Expensive, But Worth It

Does Massachusetts desperately need its bridges and roads fixed? Yes. That's all there is to it.

Treasurer Cahill is right, of course, that the bond bill is extremely expensive - and that the state is taking on heavy debt to fix its problems. But these problems exist and can't keep getting put off. The debt was already there and mounting because we weren't taking proper care of our infrastructure - better to fix the bridge in need of repairs than watch it tumble and repair costs skyrocket.

Furthermore, Governor Patrick is absolutely right when he says that putting these problems off are only going to cost this state more money in the long run: the rate of inflation on construction far exceeds the general market.
The strategy makes sense, administration officials said, because the state will save money by putting construction out to bid sooner, before inflation drives the prices up. Administration officials suggest that the state would save $1.8 billion over 20 years, based on a 7 percent inflation rate.
It all goes back to lessons from our mothers - and one thing I've learned from mine is that when something is needed, absolutely positively needed, you have to get it. I didn't have the money to go to college, but I needed the education. That's the only time it's really OK to bust out the state-issued credit card: when there's no other way to afford it, but the state desperately needs it. We may have more debt per capita than most states already, but we also have some of the worst bridges and roads across the country. They need to get fixed and that's all there is to it.


Anonymous said...

Now there's the Deval all the liberals voted for. Where the heck has he been.

In who's world is inflation 7%???

We already have the second highest debt per capita, and pay 166M a month in interest. This would make us #1 at 250M per month. REDICULOUS!!

Ryan Adams said...

Inflation isn't 7%, construction inflation is 7%. Sometimes in this world, certain sectors of the economy have higher inflation than others. One of the highest of the past few years, believe it or not, has been construction.

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