Posted November 20, 2009

Public spending on construction projects increased by 6.1 percent nationwide from September 2008 to September 2009, according to federal figures released at the beginning of the month. In 2008, governments spent only $308 billion on public sector construction compared to $326 billion this year.

Education-related construction expenses reached $88.7 billion, with highway and street construction closely trailing at $85.5 billion. Also, health care and power construction grew over the past year by 5.1 percent and 7.7 percent, respectively. Conservation and development projects, however, fell by 8 percent.

The American Recovery and Reinvestment Act's (ARRA) $90 billion dollar investment in the public sector has been the major factor in the increased spending.

“With the economic downturn, local and state governments have been slashing spending wherever possible,” said DBE Goodfaith Inc. Director of Operations Jose Altamirano. “The federal stimulus package definitely helped many state and municipal agencies execute their construction plans this past year.”

The federal government is continuing its commitment to growth in the public sector. At the end of August, the U.S. House and Senate extended the Safe Accountable Flexible Efficient Transportation Equity Act (SAFETEA-LU), which authorizes the investment of federal money in transportation infrastructure projects, until mid-December. The legislation had expired at the end of September.

The extension is meant to be only a stop-gap measure. Democrats on Capitol Hill intend to bring a successor bill to SAFETEA-LU to the House floor for a debate before Christmas. If the draft legislation does not garner enough support, lawmakers may resort to another short-term extension of SAFETEA-LU.

The federal report also contained private construction figures. Spending in this sector has, as many experts predicted, declined over the same period of time by 20.6 percent.

To view the federal government's construction figures, visit:
http://www.census.gov/const/C30/release.pdf

To read more about SAFETEA-LU extension, visit:
http://www.logisticsmgmt.com/article/367098Transportation_infrast
ructure_Surface_transportation_funding_gets_another_extension.php