(Centre Square) — A recent S&P Global report shows that inflation is driving up the total cost of infrastructure projects across the country. Arizona has some of the highest inflation rates in the nation, forcing the Arizona government to make up the difference.
The report focused on the state government’s “tax-backed debt levels” and showed that estimated prices for infrastructure projects had surged “more than 30%.” To cover these costs, the report noted that some states are using funds from both the American Rescue Plan and the Infrastructure Investment and Jobs Act to avoid further debt.
Pima County, home of Tucson, is one of the governments affected by inflation when it comes to infrastructure projects. I agreed to absorb it.
“I can’t speak for Arizona as a whole. But to answer your question about Pima County, yes, construction projects in the county are affected by inflation,” said Sheila Holben, Director of Pima County Projects Design and Construction. told Center Square.
For Arizona in particular, it is unclear what the impact is on the costs of infrastructure projects at the local state and county level, but the report does show that debt service payments as part of “general expenditures” are used by other states. It is good news for the state, as it ranks in comparison to Arizona’s debt service is only 0.82% of the total, which ranks him 45th in the nation.
When Center Square contacted the Arizona Department of Transportation about the impact on costs, it said it couldn’t provide more recent figures, but noted how the cost of some products, such as concrete and rebar, have increased recently. bottom. is measured by an index, which does not take into account all the infrastructure development costs.
ADOT spokesman Doug Nintzel told Center Square, “Our proprietary construction cost index rose 30% year-on-year in fiscal 2022. Time will tell if we see a stabilization.” rice field.
“A key issue here in Arizona, as in many states, is the variability associated with costs affecting infrastructure construction. ADOT currently operates under a $9.5 billion five-year state highway construction program. The program will be renewed annually on July 1st,” he added. .
Besides inflation affecting the public sector, the impact on consumers is also being watched, especially as inflation has slowed compared to 2022.
Inflation in the Phoenix metropolitan area was regularly the highest in the nation, but continued to decline.of consumer price index As of June, prices were up 4.4% from a year ago, compared with just 0.2% in the previous two months, the investigators determined. Inflation in the region showed a steady rise at 13% per annum until August 2022, after which it began to decline.
