A kind of toxic debt is embedded in much of the infrastructure that America built during the 20th century. For decades, corporate executives, as well as city, county, state, and federal officials, not to mention voters, have decided against doing the routine maintenance and deeper upgrades to ensure that electrical systems, roads, bridges, dams, and other infrastructure can function properly under a range of conditions. Kicking the can down the road like this is often seen as the profit-maximizing or politically expedient option. But it’s really borrowing against the future, without putting that debt on the books.
…Then there are the sewers and the wastewater plants. Stormwater drains. Levees. And just regular old drinking water. Per capita federal funding for water infrastructure has fallen precipitously since the 1970s. Cities are forced to make impossible decisions between funding different services. And even when they do have the money they need, officials make bad or corrupt decisions. So, water systems in the United States have built up a $1 trillion technical debt, which must be paid over the next 25 years. The problem is particularly acute in the Great Lakes states. One investigation, by American Public Media, found that from 2007 to 2018 Chicago residents’ water bills tripled, and Cleveland residents’ doubled. In Detroit, a city with a median income of less than $27,000, the average family paid $1,151 for water. At these rates, poor residents are far more likely to have their water shut off, and the systems still aren’t keeping up with the maintenance they need. Runaway technical debt makes it nearly impossible to pay the “interest,” which is just keeping the system running, let alone to start paying down the principal or start new capital projects.
All told, the American Society of Civil Engineers estimates that it will cost $3.6 trillion to get Americans back to an acceptable level of technical debt in our [water and wastewater] infrastructure.