California Construction News staff writer
California State Treasurer Fiona Ma and state infrastructure experts on Tuesday (Dec. 16) outlined a new strategy to modernize the state’s aging infrastructure through Senate Bill 769, the Golden State Infrastructure Proposal.
The informational hearing, held by the State Treasurer’s Office, focused on addressing California’s “C-minus” infrastructure grade and the “missing middle” housing crisis by leveraging private capital alongside public funds.
“We have billions of infrastructure needs here in California,” Ma said. “Developers just can’t pencil their projects if they have to build the streets, the roads, the pipes, and the wastewater treatment plants. I believe this bill is going to really jumpstart the housing we need for the middle-income workforce.”
Jeff Braun, co-chair of the 2025 California Infrastructure Report Card for the American Society of Civil Engineers (ASCE), testified that the state’s infrastructure is under “exceptional demand” and suffering from accelerated deterioration.
- Bridges: Of the state’s 25,000 bridges, 65% are over 50 years old
- Roads: Nearly one-third (28%) of California roads are in poor condition
- Dams: 78% of California’s 1,500 dams are over 50 years old
“A C-minus is not a grade you should settle for,” Braun told the panel, noting that the federal Infrastructure Investment and Jobs Act (IIJA) funding is a “critical lifeline” but is set to expire in 2026.
SB 769, authored by Senator Anna Caballero (D-Merced), proposes the creation of the Golden State Infrastructure Corporation. The model is informed by the “Illinois First Fund,” which allows the state to invest a portion of its portfolio into local infrastructure projects to “crowd in” private investment.
Siddharth Swadir, managing director at Rock Creek, explained that the Illinois model achieved a “2x multiplier,” where every dollar of state capital committed required two dollars of private investment.
“The state isn’t shouldering the entire capital burden,” Swadir said. “Instead, the state’s balance sheet acts as the anchor that pulls in private capital.”
Labor leaders emphasized that consistent funding is critical to maintaining a skilled workforce. Joseph Cruz, executive director of the California State Council of Laborers, stated that every dollar invested in infrastructure creates two dollars of economic activity.
“Sustaining long-term infrastructure investment is not just about building projects; it’s about building economic mobility and stable careers,” Cruz said.
Jeremy Smith, chief of staff for the State Building and Construction Trades Council of California, pushed for the bill to include strong labor standards, including prevailing wage and project labor agreements.
“We want to put local trained workers to work,” Smith said. “The prevailing wage provides a holistic middle-class livelihood for workers so they aren’t depending on state and county safety nets.”
Bob Burrus, deputy Chief Economic Development Officer for Rural County Representatives of California (RCRC), noted that rural areas often lack the technical capacity and “match” funding required for competitive state and federal grants.
“There is a gap between the capacity of these local counties and the one-size-fits-all solutions that are often offered,” Burrus said.
The hearing concluded with Treasurer Ma vowing to push the proposal forward in the next legislative session. “Having a C-minus 20 years later is terrible,” Ma said. “We just have to do better.”
Video Source: Information Hearing: An Overview of SB 769 (Caballero) The Golden State Infrastructure Proposal
