AGC Expresses Disappointment Over Congress Passing a Six-Month Funding Bill

In a Sept. 25 letter, AGC expressed its disappointment in Congress for passing a six-month, FY 2013 continuing resolution (CR)—funding the government through March 27, 2013, at about FY 2012 levels—and urged it to return to the practice of enacting traditional, year-long funding measures that provide some certainty to the construction industry. The House first passed the CR on Sept. 13 and the Senate passed it Sept. 22. President Obama is expected to sign the measure into law before the new fiscal year begins on Oct. 1. The impact of punting on the FY 2013 appropriations process until next year has serious consequences for construction projects let directly from the federal government. Specifically, under the CR, federal agencies are generally prohibited from beginning work on new and necessary projects for the next six months.  In addition, the CR underfunds the highway and transit investment levels in the recently enacted transportation authorization bill, Moving Ahead for Progress in the 21st Century (MAP-21).  As a result, construction contractors will likely see fewer opportunities for work, and in turn, less reason to hire more employees. In its letter, AGC notes that “in a political environment focused on giving employers more certainty in the market place to create new jobs, Congress’s passage of the CR, rather than regular appropriations bills, further increases uncertainty and hinders job growth.” The letter further highlights the trend of cuts to critical federal infrastructure and facilities accounts. When Congress faced a similar situation in 2011, it cut $40 billion in the FY 2011 appropriations CR the following spring. Although some welcomed the cuts, federal construction investment accounts absorbed more than half of them—about $21 billion. AGC is keenly aware of the situation at hand and has put Congress on notice “that balancing the federal budget requires prioritization, not just cuts.” The U.S. interstate system was built in 1956, most locks and dams have exceeded their 50 year life span, and the average age of failing water mains is 47 years old, representing 22 percent of all water mains.  AGC continues to strongly urge Congress to enact adequate levels of construction investment to ensure that America’s aging infrastructure and facilities receive required maintenance and expand to meet growing economic and population demands. For more information, contact Jimmy Christianson at 703-837-5325 or christiansonj@agc.org.