Mayor Chávez, along with the U.S. Conference of Mayors, today released a report that shows the economic impact of local government investment in water and sewer infrastructure services. Presidential hopefuls Barack Obama and John McCain had representatives attending the session to report back to the candidates about the importance of this issue.

The report was released during the Mayors ’08 Action Forum on Infrastructure in New York City, where mayors called for a new local/federal partnership to bring critical investment to our nation’s cities in transportation, water and other critical public infrastructure.

“America’s Cities and Metropolitan Areas drive this nation’s economy. These areas account for 86 percent of the Gross Domestic Product and house more than 85% of Americans. It is a shame how far the Federal Government has let these economic engines fall into disrepair,” said Mayor Chávez, who serves as U.S. Conference of Mayors (USCM) Water Council Co-Chair.

Mayor Chávez also stated, “Public infrastructure is the foundation for economic development -- access to roads, water, sewer, communication technologies, and electricity are all essential to the economy. The expert consensus is that public infrastructure investment yields positive returns, and investment in water and sewer infrastructure has greater returns than most other types of public infrastructure.”

Based on previous research by the USCM, local government currently spends 95 percent – the lion’s share – for water and sewer infrastructure development, rehabilitation and operations, to the tune of $82 billion. In comparison, the federal contribution is minor, accounting for the small remaining portion that is flat or declining over time. However, this new report shows that for every one dollar invested in public water and sewer infrastructure services, approximately $8.97 are added to the national economy.

Watch the press conference online and read the report.