Speaker of the House Nancy Pelosi (D-CA) notified Representatives today that the House will reconvene in lame duck session on Wednesday November 19. The Senate was already scheduled to meet next week and will convene on Monday November 17. It is unclear if either body will consider an economic stimulus bill. Speaker Pelosi apparently has suggested to Senate Majority Leader Reid (D-NV) that the Senate take up the House passed economic stimulus bill which includes infrastructure funding of $34 billion. However, the Senate attempted to pass its own version of an economic stimulus bill prior to the elections but was unable to do so because of resistance from Senate Republicans and the White House. Republican leaders have continued to press for tax cuts to help the economy and have expressed skepticism about whether public works funding would get into the economy quick enough to be effective in stimulating economic activity or creating jobs.AGC and our construction industry allies continue to point out the significant down turn in non-residential construction activity and to make the case that construction activity can play a significant role in preserving jobs and creating new ones. If you have not done so, please take the time to contact your Congressional delegation through AGC’s Legislative Action Center. Also please use the attached survey to tell us about the outlook for employment in your state and the impact that increased construction funding would have on your employment outlook.

The Senate will return next week in a lame duck session to address several legislative proposals, potentially including economic stimulus legislation. In the House, Speaker Nancy Pelosi (D-CA) has expressed the desire to go back into session to address stimulus legislation but she has not yet officially done so. President–elect Obama, in a press conference this week, urged Congress to pass stimulus legislation as soon as possible. However, President Bush has expressed skepticism about the benefit from this legislation.AGC and our transportation and construction industry allies have been advocating for the inclusion of infrastructure funding as part of the economic stimulus package. Prior to adjournment the House passed a stimulus bill which included $34 billion infrastructure funding, 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 bill that included $25 billion in infrastructure spending was blocked from passage on a procedural motion.AGC’s review of economic data and other anecdotal information clearly shows that construction spending is declining, contractors have reduced or will be reducing their work force and investment in new equipment will be significantly reduced. Increased infrastructure spending would help to keep this situation from becoming worse and would benefit the economy in general.Your Senators and Representatives need to hear from you this week. Please go to AGC’s Legislative Action Center and send a message to your elected officials.

Our Congressional supporters advocating for inclusion of infrastructure funding in the economic stimulus legislation have asked AGC for information about current conditions in the construction industry as well as the positive impact that would result from increased infrastructure funding. Please also take a few minutes to complete the brief attached survey. This information will be very useful in our efforts on Capitol Hill.

[caption id="attachment_130" align="alignright" width="300" caption="Dean Word, FHWA Administrator Madison, Scott Williams, Don Weaver"]Dean Word, FHWA Administrator Madison, Scott Williams, Dom Weaver

[caption id="attachment_134" align="alignright" width="300" caption="Brian Burgett testifies on economic stimulus legislation."]Brian Burgett testifies on economic stimulus legislation.

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.