AGC Testifies on Impact of Short Term Transportation Extensions

AGC Senior Vice President Paul Diederich presented AGC testimony today at a hearing held by the Senate Budget Committee concerning the impact short-term extensions of the transportation authorization have on the highway construction industry and infrastructure investment. Diederich listed a long litany of negative impacts on state Departments of Transportation as well as the construction industry that result from the inability of Congress to finalize a multi-year transportation bill including: no long term planning by DOTs, reduced bid lettings, extreme competition at bidding table resulting in unrealistically low prices, work force reductions, reduced worker training, workers leaving the industry and deferred investments in new equipment. The testimony also focused on the unemployment rate in the construction industry, currently hovering at 17 percent, and the huge transportation needs facing each state, pointing out that infrastructure investment would address both of these problems while aiding in economic growth. Diederich also said that, “While AGC supported the latest extension (number 9) to prevent a shutdown of essential infrastructure improvements across the nation, that support should not be confused as acceptance of inaction on a multi-year reauthorization bill.  Our members are growing increasingly frustrated that Congress seems incapable of passing critical legislation that improves the flow of commerce and promotes economic growth.” AGC’s testimony also pointed out that the Senate passed a two-year reauthorization bill that maintains current funding levels, makes reforms in the how the highway and transit programs operate and improves the environmental review and planning process and is an important first step in addressing the Nation’s long term transportation issues. However, it was also noted that the legislation does not address the Highway Trust Fund’s long term revenue problems. “In fact, after FY 2013, the Highway Trust Fund falls off the cliff.  Deep cuts in highway and transit funding will be required if additional revenue is not provided,” said Diederich.  AGC urged the Senate to continue to work on a long term solution to filling our transportation infrastructure deficit by identifying revenue and financing options that will allow the Nation to maintain and improve the National Highway System. For more information, please contact Brian Deery at (703) 837-5319 or deeryb@agc.org.