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MEMBER NOTES

MEMBER NOTES

Infrastructure Act Will Boost NJ Business – and Quality of Life

By Gary Dahms President and CEO T & M Associates

Though we have made great strides in strengthening the economy since the peak of the pandemic , ongoing inflation and fears of a recession are making it difficult to be optimistic about 2023 . But when it comes to the federal government ’ s investment in infrastructure , both here in the Garden State and throughout the nation , the outlook is bright . We are overdue for some help , and that help is now on the way .

What the IIJA Means for NJ
Through the bipartisan Infrastructure and Investment Jobs Act , which was signed into law in November 2021 , Congress has authorized about $ 1.2 trillion in much-needed spending . You may have seen headlines about the billions of dollars New Jersey can expect – but I don ’ t recommend we get hung up on specific figures . Based on numerous factors , including how the Act is interpreted and how funds are prioritized and allocated , dollar numbers may change . There are many unknowns , but the key takeaway is that the federal government is making a big investment in our infrastructure – in addition to the money that already exists from the Transportation Trust Fund and Department of Transportation budget .
We can certainly use the help . More than 500 New Jersey bridges and thousands of miles of roadways are considered in poor condition . New Jersey will also benefit from investments in projects to build our resilience against climate change and cyber-attacks ; to eliminate lead water service lines and ensure every resident can receive clean drinking water ; to increase access to charging stations for electric-vehicle travelers ; and to strengthen our bustling airports and mass transit systems .
The challenges with our decrepit roads and bridges are not new , nor are they merely a statewide problem ; this is a national issue . The Act is the largest investment in infrastructure since the construction of the Interstate highway system under President Eisenhower , which began in the 1950s . The useful lifespan of most infrastructure is about 50 years . And of course , our highway system was built to different
standards , during an era when fewer cars and trucks were on the road . Here in New Jersey , our 39,000 miles of public roads get a rigorous daily workout . The state ’ s population has grown by about a third since the 1960s , and Port Newark – Elizabeth Marine Terminal is among the busiest in the nation . Increased port capacity and urban development – in Hudson County , for example – have further increased the strain .
How the Dollars Will Flow
As I noted , many details are still forthcoming . But we can expect similarities to state and federal infrastructure and transportation programs of the past . For each year of funding , states , counties , and municipalities will have three years to allocate dollars to a project and five years to spend them , which means that this sixyear investment will actually stretch to about 14 years ’ worth of work . We have a very busy decade ahead of us .
Unlike American Rescue Plan funding , which flowed to states directly , this program will require administrators to identify areas of need and apply for grants or reimbursement funds , carefully tracking every dollar – but this is not a new concept . Throughout the state , officials are already hard at work developing plans on how the money might be invested , depending on the amounts eventually allocated . As I mentioned in a previous issue of Commerce , we are living in the era of the Great Resignation ; ensuring that we have the right people and enterprises in place to administer these funds , not to mention performing the necessary work itself , will be challenging . It will require planning , patience , and collaborative teamwork .
And yet , I am confident we ’ ll get it done . When the public and private sectors come together , with the government drawing on the significant expertise and resources of engineering firms and other experts to lead big projects , extraordinary things happen . We saw it in London with the 2012 Summer Olympic Games , and we are seeing it here in New Jersey with the Northeast Corridor Gateway Program , to cite a local example .
Economic Benefits for the Garden State
Infrastructure projects are a boon to New Jersey businesses and our economy — but also to our health and quality of life . Look at projects like the new Terminal A development at Newark Liberty International Airport , the largest design-build project in state history , which will generate more than $ 4.6 billion in economic activity while supporting the Port
Authority ’ s objective of reducing greenhouse emissions from its facilities by 80 percent by 2050 . As we continue to read headlines about climate change and its possible impact on severe storms , such sustainability goals are vital .
But investments in our infrastructure also help us weather storms of the economic variety . We all remember the challenges of the economic recession of 2008 and 2009 . But a $ 2.7 billion widening of a section of the New Jersey Turnpike helped ease the sting , generating about 18,000 construction and ancillary jobs while easing pressure on an estimated 680,000 daily commuters .
In a similar fashion , this “ recession-resilient ” influx of funding will be a blessing for New Jersey throughout the coming years . While we aren ’ t yet certain what the dollars will look like , what we can reliably expect is multi-year boost to the economy , creating jobs , paying salaries , and fueling growth into 2030 and beyond .
Just as importantly , these projects will further the state ’ s environmental goals and improve the lives and overall wellness of New Jerseyans . Improvements to our mass transit systems and electric vehicle-charging capabilities will result in fewer gas-powered cars on the roads and less pollution in the air . A decrease in commuting hours and traffic jams means less frustration and more valuable time spent with family . And the health benefits of removing lead from our drinking water are indisputable .
I realize that traffic cones and construction workers on the roadways are not always a welcome sight . But we should all celebrate the fact that our aging roads and bridges are getting a necessary overhaul , and that New Jersey is receiving a helpful economic boost when we need it most . As we continue to move beyond the pandemic and toward a better and brighter future for the Garden State , I ’ m excited about our next steps .
Gary Dahms is the president and CEO of T & M Associates , a leading national consulting , engineering , environmental , and technical services firm headquartered in Middletown . He also serves as 1st Vice Chair of the New Jersey Chamber of Commerce and chairs its Transportation Committee .
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