San Jose Faced Record Infrastructure Asset Burden
The city currently struggles with a $2.2 billion deferred maintenance backlog for its massive infrastructure network.
Updated on Sept. 26, 2026 in Utilities
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Merritt Research Services identified San Jose as having the highest infrastructure capital asset burden among large U.S. cities. The city faces a $2.2 billion deferred maintenance backlog that is expected to persist over the next 30 years.
Why it matters
The city's horizontal growth patterns and a large residential base have left it with fewer commercial employers to generate tax revenue compared to similar urban centers. This disparity creates a significant challenge in funding maintenance for over 2,500 miles of road.
San Jose manages a 2,500-mile road network, significantly outpacing the 1,260 miles maintained in San Francisco. City bridges in poor condition dropped from 11% to 1% following the allocation of $650 million from the 2018 Measure T bond.
The players
Merritt Research Services
This firm specializes in analyzing municipal credit and capital asset conditions for major U.S. cities.
Department of Public Works
This local government agency is responsible for the maintenance and management of San Jose infrastructure.
SPUR
This research organization focuses on urban planning and public policy issues within the Bay Area.
The details
City officials have focused on using bond funding for bridge rehabilitation, road repairs, and public safety facilities to combat the maintenance backlog. Despite these efforts, the sprawling nature of the city's geography continues to spread infrastructure costs over a less dense population.
Timeline
A 2016 study by SPUR first examined the city's fiscal status.
Voters approved the $650 million Measure T bond in 2018.
The findings were published on September 25, 2026.
A new police helicopter hangar will come online next month.
The $2.2 billion infrastructure backlog covers the next 30 years.
Market Landscape
San Jose's reliance on voter-approved bonds mirrors the trend of local governments seeking alternative financing to bridge gaps in municipal maintenance. This reliance highlights the long-term struggle to align sprawling geographic development with stable tax revenue models.
Residents may see continued prioritization of infrastructure repairs in areas funded by previous bond measures. However, the lack of a strong commercial tax base suggests the city will likely face ongoing budgetary constraints for new public projects.
The takeaway
The city must balance the high costs of maintaining a sprawling road network with limited commercial tax revenue. Voters have historically stepped in to fund repairs, but sustainable long-term maintenance will require addressing the underlying fiscal structure.
What happens next
A new police helicopter hangar is scheduled to come online next month.
Further reading
For additional context on the city's infrastructure challenges, explore the Utilities section.
Source note: This article includes information reported by ABC7 San Francisco.
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