The Americans for Transportation Mobility (ATM) coalition met today with Mort Downey, former DOT Deputy Secretary and currently advisor to the Obama campaign on transportation to discuss the candidate’s positions on these issues. Mr. Downey presented a four page description of Sen. Obama’s positions which recognize the need to upgrade existing transportation infrastructure to meet current and future needs and create jobs. Sen. Obama has proposed a $60 billion over 10 year National Infrastructure Reinvestment Bank to expand and enhance, not supplant, existing federal transportation investment. Included in the paper are positions on investing in a modernized air traffic control system, Amtrak funding, as well as high speed freight and passenger rail. Mr. Downey acknowledged that SAFETEA-LU reauthorization will be a top priority next year. While Senator Obama does not support raising the gas tax, he recognizes the need for increased revenue and is open to looking at a variety of ideas. AGC is a member of the Management Committee of ATM.

A House democratic plan to enact economic stimulus legislation before the end of the year received a boost yesterday as Federal Reserve Chairman Ben Bernanke tentatively endorsed the idea and the Bush administration softened its opposition. Prior to adjournment, the House passed a stimulus bill that, among other things, contained approximately $34 billion for infrastructure investment, including $12.8 billion for the federal-aid highway program; $3.6 billion for transit; $600 million for airport capital improvement projects; $7.5 billion for water infrastructure; $5 billion for the U.S. Army Corps of Engineers; $3 billion for public school reconstruction; $500 million for Amtrak; and $1 billion for public housing construction. A Senate version of the legislation was not successful. A group of economists met last week at Speaker Pelosi’s invitation to discuss the value of such a proposal and agreed that this type of spending would have a positive economic impact. A hearing has been scheduled for next week to further discuss the concept. Congress could be reconvened after the election to take up the measure.

At its Fall Board meeting this week, AASHTO approved a proposal from its SAFETEA-LU reauthorization task force to recommend to Congress that next year’s surface transportation legislation authorize $544.5 billion in new funding. This would almost double the $286 billion authorized over six years in SAFETEA-LU. AASHTO recommended a menu of different measures that could be used to raise the revenue necessary to fund the program at this level, including: increase the Federal motor fuels tax by 1 cent per gallon (raising $1.8 billion annually); establish a national vehicle sales tax of 1 percent ($9 billion per year); establish a 1 percent sales tax on motor fuels ($4.7 to $7.6 billion annually); establish a distance traveled tax at 1 cent per mile ($32.4 billion annually); implement a freight tonnage tax (42.8 billion per year); create a tax credit bonding program ($50 billion); and institute a $10 fee per container shipped through US ports ($600 million per year). The container shipping fee would be maintained in a new and separate freight fund account.The AASHTO proposal also recommended a number of reforms to the program. Chief among them is to limit the amount of funds that can be earmarked for specific projects to no more than 5 percent of total spending. In SAFETEA-LU members of Congress earmarked 18 percent of the program for specific projects.AASHTO also recommended consolidating the number of funding programs from over 100 to six key programs as follows: preservation and renewal; freight capacity; highway safety improvement; operation and maintenance; congestion reduction; environment.

As reported Monday, House Speaker Nancy Pelosi (D-CA) convened a forum with economic experts to discuss an economic recovery plan for the nation.  She announced that she would be calling on the appropriate committee chairmen to conduct hearings on various portions of an economic recovery package in the upcoming weeks.

House Speaker Nancy Pelosi (D-Calif.) convened a forum with economic experts to discuss an economic recovery plan for the nation on Monday.  Prior to the meeting, AGC sent a letter to Speaker Pelosi urging her to consider economic stimulus initiatives that will positively impact economic activity, including provisions to boost the construction industry.

AGC of America is excited to announce the 2009 Highway & Utilities Contractors Issues Meeting, to be held February 5 -7, 2009 at the La Quinta Resort and Club in Palm Springs, California. This meeting is the premier gathering place for contractors and related businesses involved in every aspect of highway and utility construction to hear about and discuss issues and trends in these markets.

With the economy continuing to decline, Speaker Nancy Pelosi announced today that House Democratic leaders will convene an economic forum on Monday with some of America’s leading economists. A statement from the Speaker’s office said that the October 13 forum will help Congress develop an economic recovery plan that will create jobs by rebuilding our roads, bridges and highways, prevent cuts to vital government services such as health, education, and public safety, extend unemployment benefits, and help families cope with rising food costs. Although Congress is currently in adjournment, it did not adjourn “sine die,” which means it could be reconvened if necessary. Prior to adjournment, the House did pass a stimulus bill that included approximately $34 billion for infrastructure investment, including $12.8 billion for the federal-aid highway program; $3.6 billion for transit; $600 million for airport capital improvement projects; $7.5 billion for water infrastructure; $5 billion for the U.S. Army Corps of Engineers; $3 billion for public school reconstruction; $500 million for Amtrak; and $1 billion for public housing construction. The Senate, however, failed to pass its version of economic stimulus legislation.AGC is providing information to the forum pointing out that $100 billion of new infrastructure projects have recently been delayed due to the constricted credit market. This is in addition to the already reduced number of infrastructure projects that have been going out to bid because of the impact of construction material cost inflation on the buying power of public works dollars and the diminished availability of tax revenue from the decline in real estate values. AGC is also pointing out that 52,000 highway construction jobs have been lost in the past 16 months and that a US Department of Transportation report demonstrates that a $1 billion investment in transportation infrastructure can induce 35,000 jobs. Over the past year, AGC has met with congressional leaders, sent strong messages to both the House and Senate, and signed on to letters from transportation related coalitions in support of infrastructure investment to stimulate the economy.

One of the major issues to be faced by the 111th Congress which begins in January 2009 is the reauthorization of the federal surface transportation programs. SAFETEA-LU expires on September 30, 2009 which leaves the new Congress and the new Administration only nine months in which to draft and approve legislation to carry these programs into the future. A key issue to be addressed will be how to fund highway and transit projects. With the Highway Trust Fund’s balance essentially at zero, new revenue will be necessary to provide the amount of funding necessary to address current and future demands.There will be many new members of Congress next year who will not be familiar with the Highway Trust Fund, the Federal-aid Highway program, transportation infrastructure needs and the impact of transportation on America’s quality of life. AGC worked in support of the American Highway Users Alliance to create a publication entitled "The Road to Congress" to educate Congress on the issues related to highway and transit funding.Copies of the binders have been provided to AGC chapters and the grass roots network to share with candidates running for office and their staffs. This publication will also be useful to you as you meet with your members of Congress before the election and in the coming months before the reauthorization legislation is considered. Copies are available by contacting deerb@agc.org .

The 110th Congress adjourned on October 3 after having completed action on the Economic Rescue Plan. In the final week of the session attempts to pass economic stimulus legislation, however, were unsuccessful. Senate leadership left open the possibility of returning for a "lame duck" session following the elections but the House did not. The House passed an economic stimulus bill (264-158) which included $12.8 billion for the federal-aid highway program; $3.6 billion for transit; and $600 million for airport capital improvement projects. The Senate bill, which included $8 billion for the highway program; $2 billion for transit; and $400 million for airport capital improvement projects failed on a procedural vote (52-42).Congress also failed to enact an appropriations bill to fund the Department of Transportation for FY 2009. Therefore, DOT programs were included in a continuing resolution which provides funding at the 2008 level through March 6, 2009. Congress will need to take additional action before March 6 to fund DOT programs for the remainder of FY 2009.

Both the House and Senate took action yesterday approving legislation extending for six months authority for Federal Aviation Administration (FAA) programs and the aviation taxes to pay for them. The President is expected to sign the bill. This action was necessary because Congress has been unable to pass an FAA reauthorization bill which has been under discussion for the past year. The 111th Congress must now take up FAA reauthorization next year. Both House and Senate committees of jurisdiction expressed the desire to complete action on the FAA bill before turning to the highway and transit reauthorization bill next year.