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    Credit: Source: PUBLIC WORKS 2007 forecast survey

    2007 operations & maintenance budgets
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    2007 capital improvement budgets

According to a national coalition of cities, counties, and finance officers, state and local governments nationwide could lose up to $8 billion a year in revenue if a bill that would exempt some telecommunication services from taxes and user fees (including right of way fees) becomes law this year.

Even if the measure fails, fees for other services—like water—are under pressure from states that have imposed levy freezes that prevent rate increases.

To get a handle on how public works departments are being financially supported in their efforts to care for the infrastructure, both on a day-to-day level as well as for major improvements, we asked readers in early November to share their 2007 budgetary expectations. We received 440 responses, a 1.4% response rate.

We also asked readers what activities represent the greatest challenge for their department this year. Water, wastewater, and stormwater issues edged slightly ahead of streets, roads, and bridges—not surprising, given the age of much of the nation's sanitary sewer systems and federal regulations that are prompting communities to establish utilities to pay for required improvements to stormwater systems.

Also not surprisingly, larger communities are receiving larger budget increases.

While parks and recreation are often the first to go when general funds get low, staffing in all departments is becoming increasingly difficult. Salaries aren't high enough to attract and keep talent, departments face hiring freezes that force overtime (sometimes without pay), and positions aren't being filled after workers retire.

To continue providing quality service with fewer bodies, many departments are outsourcing non-core activities—but they're not always satisfied with the results. “Contractors do a good or adequate job in the beginning of the year but become less effective as the year goes by,” says one respondent from the Midwest. “They take their work for granted.”

Design-build, a project-delivery method where a single entity is responsible for both designing and constructing a project, was mentioned by respondents in almost every region of the country as a way to manage costs. Most states have passed or are considering legislation that alters procurement statutes to allow public agencies to enter into design-build contracts. Only seven states—Alabama, Indiana, Iowa, Kansas, Michigan, Rhode Island, and Wyoming—lack such legislation.

In the end, respondents were sanguine about their role in delivering public services, as evidenced by the one who said, “Things will be what you make of them.”