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Obama
backs second stimulus plan
 [News]
Speaking at a news conference earlier this month, U.S. House Transportation
Committee Chairman James Oberstar (D. - Minn.) pushed for a second stimulus bill
for the road and highway construction industry. He said that the federal
government should spend $69 billion to update the nation's infrastructure and
create much-needed jobs for the flagging industry.
In February, the federal government enacted the $787 billion American
Reinvestment and Recovery Act (ARRA), which allocated $48 billion to states for
transportation projects.
Oberstar and Subcommittee on Highways and Transit Chairman Peter A. DeFazio (D.
- Ore.) submitted their proposal in a letter to President Barack Obama prior to
the White House's Forum on Jobs and Economic Growth. According to the two
Congressmen, money from the first stimulus package has been used on almost 8,000
projects nationwide and has saved or created approximately 210,000 jobs. The
ARRA's success, they say, should be expanded since states currently have another
$62 billion of 'shovel-ready' projects that can benefit from a second stimulus.
While initially hesitant to spend more federal money on transportation
projects, the jobs summit concluded with President Obama advocating an
additional $50 billion in infrastructure spending. The White House has proposed
that unused money from the Trouble Asset Relief Program, more commonly known as
the federal government's 2008 Wall Street bailout, be applied to the second
stimulus package.
An assessment of the industry by the Associated General Contractors of America (AGC)
predicts that 430,000 construction jobs will be lost nationwide in 2010 if there is a drop
in federal stimulus assistance.
The AGC is currently lobbying Congress to pass legislation to replace funding
from the recently-expired Safe Accountable Flexible Efficient Transportation
Equity Act, which authorizes the investment of federal money in transportation
infrastructure projects, and is leading a coalition campaigning for another
stimulus.
"Boosting transportation investments will keep thousands of construction workers
employed at a time when our economy can scarcely afford more layoffs," said
Stephen E. Sandherr, AGC's chief executive officer. "The success of the stimulus
in saving countless construction jobs will have been in vain if its sequel is
underinvestment in our roads, bridges and transit systems."
In response to
President Obama's call for more stimulus spending, Democrats in the U.S. House
of Representatives drafted a $150 billion spending plan that sets aside $35
billion for transportation infrastructure projects. The U.S. Senate will not
consider a second stimulus until the new year.
To read Oberstar
and DeFazio's letter to President Obama, visit:
http://transportation.house.gov/Media/file/ARRA/POTUS
Letter
120209.pdf
To watch Oberstar and DeFazio's news conference on a second stimulus, visit:
http://transportation.edgeboss.net/wmedia/transportation/
20091202pr.wvx
To read the AGC's assessment of the 2010 construction industry, visit:
http://www.agc.org/cs/news_media/press_room/press_release?
pressrelease.id=461
Construction firms face challenges,
opportunities in new year
[Feature] This past year was a roller coaster ride for construction firms – at
least for those that were able to keep their doors open. Most experts agree that
February's federal stimulus package kept the public works market afloat, but a
depressed private sector forced many more businesses to compete for government
contracts than in years past. The shift resulted in highly competitive bid
environment that left more than a few companies out in the cold. Will 2010 be
equally contentious, with well-intentioned policy decisions evolving into harsh
realities when implemented? While the crystal ball is murky, there are some signs that the new
year will be better than the last...and few signs that it may be just as bad.
Here is what to expect (or perhaps fear) in 2010:
-
A second stimulus
package may be looming on the horizon. The White House has proposed that the
remaining $200 billion from the Trouble Asset Relief Program be used to help
stimulate more construction job growth in 2010. President Barack Obama plans to allocate
approximately $50 billion to transportation infrastructure projects
nationwide. Republicans, though, are fighting the president's proposal,
arguing that the money would be better used to pay down the national
deficit.
-
California's
economy will start recovering from the economic downturn. According to UCLA
economists, California's unemployment will peak this year at 12.7 percent
and will begin decreasing in 2010 as the economy slowly recovers. It will
take until 2012, however, for unemployment will drop to 10 percent. As
certain sectors of California's economy recovers, private construction work
will rebound.
-
A budget deficit
will still constrain state spending. Over the next year and a half,
California is facing a $21 billion budget hole, not to mention projected
shortfalls of $21.3 billion in 2011-12 and $23 billion in 2012-13.
Legislators stripped state spending bare during the most recent budget
imbroglio and, with Republicans refusing to back any tax and fee increases,
non-essential public works money may be next to get axe. However, California
might be bailed out of its budget mess if a second stimulus package is
passed by the federal government.
-
Contractors may
not have to retrofit their off-road diesel equipment. California's Air
Resources Board's (CARB) originally planned to require the state's
contractors to retrofit their equipment in order to meet new
emissions standards. But, earlier this month, the Associated General
Contractors of America discovered that CARB's own data shows that off-road
diesel operators will exceed the emissions standards without being
forced to purchase new equipment per the diesel retrofit rules. At the
moment, it is unclear whether CARB will back away from its plan in light of
the new facts.
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