/Infrastructure issues tied to population loss

Infrastructure issues tied to population loss

Pete Walley is the long-range economic development planner for the State of Mississippi. He stated that a strong tax base and prior planning were the key factors in maintaining vital infrastructure such as water systems. “In Jackson, there are only about 180,000 people living in Jackson proper. More than 60% of people in the country are dependent upon transfer payments. Walley asked, “How do you manage your infrastructure while the tax base is decreasing?” Jackson, which lost 14,007 people between 2000 and 2010, was the only county in Hinds or Rankin that saw its population decline (7.5%). Jackson’s neighboring communities experienced 31% increases. Jackson’s population peaked during the 1980s, and has been steadily declining ever since. Walley points out that there are many factors that contribute to the decline in population. However, infrastructure investments can limit potential economic growth for any community. “Infrastructure is a necessity, it’s a must. He stated that you need them to improve the quality of life or the economy. The Center on Budget and Policy Priorities released in February a report on the most critical infrastructure areas that needed improvement. The 2012 American Society of Civil Engineers (ASCE) state-by-state infrastructure report card was the basis for their priorities. Mississippi received a C+, which is a higher grade than the national D+. The report estimates that it would cost $384 billion to repair the nation’s drinking water system and distribution system. The report points out that Mississippi has abundant natural drinking water resources, including underground aquifers that are relatively clean from pollution. The report states that drinking water treatment systems are severely underfunded, with less than 50% funding coming from public sources. The report states that a small rural state with a low population cannot sustain the rapid deterioration in water tanks, pipes and treatment facilities. Mississippi’s health is directly affected by the state’s inability to maintain its drinking water infrastructure in accordance with current environmental standards. The report estimates that Mississippi will need to invest $7Billion in drinking water infrastructure in the next 20 years and $4B in wastewater infrastructure. The CBPP stated that “carefully targeted initiatives to maintain or improve public infrastructure boost a state’s productivity over the long-term,” which would lead to more economic growth and better-paying jobs. In the short term, under the right conditions–including the current ones — public infrastructure investments also can create needed jobs.” According to the city of Jackson, water and sewer utility bills have remained consistently at or below $20 per month. All capital improvement funds, including this money, go towards maintenance, usage, and improvement. As the population decreases, major road and pipe overhauls become less possible as the tax base that can support major improvements shrinks. Director of Hope Policy Institute Dr. Corey Wiggins said that this issue is within reach of this legislative session, with the Legislature contemplating a “Taxpayer Pay Raise Act”, which would eliminate segments of the income tax as well as the franchise tax. Constituencies are easy to sell tax cuts. It is not easy to explain the effect of the state income tax in your daily life, he points out. Wiggins stated that tax cuts are a conversation we are having. “That could be money going towards our future.” These are not two separate issues. These issues are interrelated in important ways.”