San Jose Faced Record Infrastructure Maintenance Backlog

Business owners in San Jose should anticipate ongoing capital requirements to address the city's $2.2 billion maintenance deficit.

Updated on Sept. 26, 2026 in Utilities

Isometric editorial illustration showing a wide expanse of cracked asphalt pavement against a solid geometric background. — San Jose carries a $2.2 billion infrastructure maintenance backlog, forcing the city to rely on long-term bond funding to maintain its expansive street network. AI Illustration. Upload story photo >

Live Poll

Is infrastructure maintenance in your community getting better or worse?

Merritt Research Services identified San Jose as having the highest infrastructure capital asset burden among large U.S. cities. The city currently faces a $2.2 billion deferred maintenance backlog that will persist over the next 30 years.

Why it matters

The city's horizontal sprawl and limited commercial employer base restrict tax revenue, forcing a reliance on bond funding for essential infrastructure. This creates long-term fiscal pressure that impacts the municipal services and operational environment for local businesses.

San Jose manages 2,500 miles of roads, nearly double the 1,260 miles maintained by San Francisco. While the $650 million Measure T bond helped improve bridge conditions from 11% to 1% poor, a $2.2 billion backlog remains.

The players

Merritt Research Services

An analytical firm specializing in public finance and infrastructure capital asset assessments.

San Jose Department of Public Works

The local municipal agency responsible for maintaining the city's 2,500 miles of road network and infrastructure facilities.

The details

The city's infrastructure burden stems from its geographic expansion, which requires maintaining significantly more surface area per capita than more densely populated cities. Bond funding like Measure T enabled the repair of 1,000 miles of city streets, yet the lack of a robust commercial tax base leaves the municipality dependent on future voters to pass funding measures for the remaining maintenance needs.

2016: SPUR conducted a study on the city's fiscal status.
2018: Voters approved the $650 million Measure T bond.
September 25, 2026: Article publication date.
Next month: A new police helicopter hangar comes online.
Next 30 years: Estimated timeline for the $2.2 billion in maintenance needs.

Market Landscape

The city's reliance on the 2018 Measure T infrastructure bond illustrates a broader trend of municipal dependence on voter-approved debt for maintenance. This case highlights how horizontal urban sprawl creates structural fiscal challenges that persist even after targeted bond investments.

Local operators should monitor upcoming municipal budget hearings and bond proposals to gauge potential impacts on future service taxes or fees. Factor the $2.2 billion maintenance deficit into long-term location planning, as road and facility improvements may be prioritized based on future funding availability.

The takeaway

San Jose's fiscal challenges are a byproduct of its expansive geographic design and limited commercial tax base. Businesses should track city bridge and road maintenance schedules to anticipate logistical disruptions as the city manages its $2.2 billion maintenance backlog.