State infrastructure priorities: Where do states want to invest?

Deltek’s Industry Analysis team published its annual State of States report last month, which analyzes each governor’s state-of-the-state speech for key projects anticipated in the year to come. Thirty-three governors mentioned major architecture, engineering, and construction (AEC) projects in their addresses. Below is a list of several high-value AEC projects states are focusing on in 2015.  

Water/Energy projects – $13 billion estimated value

• Alaska Governor Bill Walker (Independent) announced his administration will begin building the Alaska gas line to Tidewater, at an estimated cost of $10 billion.
• California Governor Jerry Brown (D) announced his administration will invest in long-overdue water projects, saving $2.8 billion in the state's new rainy-day fund.
• Montana Governor Steve Bullock (D) asked for support for his infrastructure plan, The Build Montana Act, which would invest more than $300 million into bridges, water and sewer systems, schools and roads.

Roads – $4.7 billion estimated value

• Texas Governor Gregg Abbott (R) added more than $4 billion a year to the state’s budget to build more roads in Texas.
• Indiana Governor Mike Pence (R) called for an additional $300 million in funding for roads to allow cities and towns new resources to plan regional growth strategies.
• Nevada Governor Brian Sandoval (R) called for a $250 million investment in Project NEON to improve Southern Nevada’s I-15, reduce congestion, and create construction jobs.
• New Mexico Governor Susana Martinez (R) proposed at least $180 million of infrastructure money over the next three years for major highway construction projects across New Mexico.

Building/School Revitalization - $1.8 billion estimated value

• North Carolina Governor Pat McCrory (R) will submit to the General Assembly a $1.2-$1.4 billion bond proposal for Project Phoenix, to revitalize old buildings, build more efficient facilities, and spur economic development.
• North Dakota Governor Jack Dalrymple (R) called for an additional $300 million for the school construction revolving loan program.
• Tennessee Governor Bill Haslam (R) allocated $260 million in this year’s budget for capital projects including new science facilities at Jackson State Community College and the University of Tennessee, nearly $25 million for improvements to colleges of applied technology across the state, and funding for a fine arts classroom building at East Tennessee State University.

Transportation - $1.4 billion estimated value

• North Carolina Governor Pat McCrory (R) announced he will request a transportation bond of $1.2 billion to allow quicker construction of projects in the 25-year vision plan.
• New York Governor Andrew Cuomo announced a $65 million investment in ports and hubs from Albany to Oswego, to Syracuse, to the Port of Ogdensburg, to the Binghamton Rail Yard.
• Governor Cuomo is also calling for $150 million for construction of vertical parking structures at strategic locations in Long Island and Westchester to assist commuters coming in on the Long Island Rail Road.

Continued budget growth sets the stage for ongoing investments and innovation as the governors look to allocate a collective $750 billion in FY 2015 general funds across a variety of spending areas. For access to the 2015 State of the States report, please click here.

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