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Keston Institute for Infrastructure Debate SeriesKeston Institute for Public Finance and Infrastructure Policy Debate Series

November 13, 2003
Who Holds Responsibility for Infrastructure?
New Regional Governments or Cities & Their Partners


Introduction

The inaugural event of the Keston Institute for Public Finance and Infrastructure Policy took place on November 13, 2003, and consisted of a debate on the subject of regional governance. At issue was the appropriate form of governance for the provision of infrastructure: should it be local or regional? Nick Bollman of the California Center for Regional Leadership and Raphael W. Bostic of the University of Southern California argued the case in favor of regional governance; Ken Farfsing, City Manager of Signal Hill, California joined with Peter Gordon of USC to make the argument against. The conversation was wide-ranging, covering several major issues in detail. While there was significant disagreement between the two sides over its implementation and scope of authority, there was a surprising agreement on the essential need for regional governance.

First, the participants disagreed on the question of whether or not the current system works - whether society has been well-served by investment decisions made by local governments and ad hoc coalitions of local governments. Bollman and Bostic argued that as it stands now, regional interests are only sometimes served by the collaboration of localities, and not often enough. They pointed to the failure to keep the El Toro airfield functioning and expand the region's air capacity as a failure to achieve a socially optimal outcome. Farfsing and Gordon, on the other hand, suggested that the current system works relatively well - especially in contrast to some examples of actual regional governments. In particular, they used the Alameda Corridor East authority and the Metro Gold Line as examples of successful coalition building among local governments. They further used the migration of bus lines from MTA to local control as an example of markets replacing top-down planning with flexible, cost-effective programs.

These differences over current levels of performance led to differences over the capacity of regional government to achieve socially optimal choices, especially those regarding large investments such as infrastructure. Farfsing and Gordon suggested that "heavy-handed, top-down" government projects tend to fail. They proposed instead that competition among cities and governments was a better solution - trying to "cure" the system, through another (even well-intended) layer of government, would only make things worse. Bollman and Bostic, on the other hand, questioned the alignment of regional and local interests, suggesting that left to their own devices, localities tended to act in their own interests, ignoring the question of what might be best for society as a whole. They argued that making local cooperation routine would require conditions that are rarely met: leadership able to understand the impact of local choices in a regional context, a media able to convey the importance of the region to the local citizenry, and a public willing to become engaged in the dialogue.

What was most interesting was the apparent consensus regarding the need for regional governance. The common thread running between both teams was the recognition that governments must somehow be organized at the level of the problems being addressed. That is, for example, if cleaning the Los Angeles river is to become a priority for the region, policies must be enacted that take into account the interests of all the municipalities through which the river runs. Without unanimous participation, the actions of the non-coalition members can undo the coalition. During the debate, then, the contentious issue was not whether or not regional governance was a valid concept. Rather, the sides differed most clearly on the it form that governance ought to take: their mandate, scope of activity, longevity, etc.

The recognition of the need for regional governance is an essential starting point for future discussion. Given the infrastructure needs of California, and the nation as a whole, the details will have to be addressed sooner rather than later.

Christian L. Redfearn, Research Director
Keston Institute for Public Finance and Infrastructure Policy
University of Southern California