Bay to Basin: Cities Make a Comeback

• The Milken Institute is expanding its global footprint with a new Asia Center, an annual London summit, continued engagement in Israel, and new initiatives in Africa, while maintaining a primary focus on California's innovation ecosystem.
• The Institute's California Center is credited with influencing Proposition 2, which established a state rainy day fund, following work with the Governor's office.
• Scott Miner, Chair of the California Center and Guggenheim's Global CIO, noted that assets under management at the Institute have grown from $40 billion to over $220 billion during his tenure.
• The California Center's research on government efficiencies and interagency collaboration is currently being utilized by the Governor's Office of Business and Economic Development.
• Joint engagements between the California Center, the Small Business Administration, and the Federal Reserve Bank of San Francisco are driving policy changes to improve small business lending and capital access.

Infrastructure Investment and Public-Private Partnerships (PPPs)

• Jim Wunderman (Bay Area Council) cited the BART system and the automated Oakland Airport Connector as successful examples of regional infrastructure collaboration that overcame initial opposition to in on-time and on-budget execution.
• Dale Bonner (Plenary Group/Milken Institute) reported that private infrastructure capital in the U.S. is projected to reach $42 billion in the next two years, with approximately one-third of this pipeline concentrated in California projects like the 710 Freeway and Transbay Terminal.
• A significant barrier to deploying private capital in California is identified as "regulatory risk" and the need to retrain public works staff to engage with complex private sector analyses.
• Bonner warned that a key 2009 statute incentivizing private infrastructure investment is set to sunset at the end of 2016; failure to reauthorize it could cause investors to view California as "turning off the light switch."
• Austin Buechner (LA Times) emphasized that long-cycle infrastructure projects, such as the LA River revitalization, often span decades and require sustained political will across multiple administrations to reach completion.

Regional Waterway Revitalization and Transportation

• Dr. Carol Armstrong (LA River Project Office) described the LA River as "infrastructure with a pulse," highlighting a $1 billion Army Corps of Engineers study aimed at ecosystem restoration and flood control that would leverage federal funding.
• Mayor Rusty Bailey (Riverside) proposed the "Riverside Reconnects" plan to restore streetcar service along the Magnolia Avenue corridor, citing the success of Tucson's 6-year, $1 billion streetcar project which now carries 5,000 daily riders.
• Bailey's plan aims to connect three universities in Riverside, potentially increasing the local population from 350,000 to 400,000 and treating the region as a "college town" to reduce car dependency.
• Armstrong noted that the LA River Revitalization Corporation and the LA River Cooperation Committee have been established to create governance structures that can negotiate with multiple jurisdictions and attract private philanthropy, such as NBC Universal's $13.5 million commitment to bike paths.
• Jim Wunderman detailed the "Google Bus" phenomenon in the Bay Area, where private employers fund 45,000 daily commuter trips; while efficient, the system highlights tensions regarding driver wages, unionization, and the need for dedicated express lanes to mitigate congestion on Highway 101.

Governance Challenges and Future Risks

• Panelists identified a governance fragmentation issue where private investors struggle to negotiate with 50 mayors and county supervisors, suggesting a need for centralized regional partners to streamline public-private deals.
• Jim Wunderman highlighted a critical, under-discussed risk: the San Francisco Bay Estuary is highly vulnerable to catastrophic flooding from a "Pineapple Express" storm or King Tides, posing a threat to the tech corridor housing major employers like Google and Apple.
• Dale Bonner noted that current public funding streams often compete for the same capital pools, and better screening is needed to isolate the 15-20% of projects suitable for private investment from those requiring traditional government funding.
• Carol Armstrong argued that infrastructure projects must move faster to address social equity, providing safe civic spaces for aging populations and children rather than focusing solely on ecological aesthetics.
• The panelists concluded that successful long-term infrastructure requires "champions" in the public sector who maintain focus on singular goals rather than spreading resources too thinly ("peanut butter") across competing agendas.