Infrastructure Investment in Stimulus Package Remains Front Burner Issue

President-elect Barack Obama used a radio address to the nation this past weekend to urge enactment of a new economic stimulus package to create jobs as his first priority in January. He called for “the largest new investment in roads and bridges since President Dwight D. Eisenhower built the Interstate system in the late 1950s.” The president-elect also said for the first time that he will “launch the most sweeping effort to modernize and upgrade school buildings that this country has ever seen.” He also called for “a massive effort to make public buildings more energy-efficient,” replacing old heating systems and installing efficient light bulbs and recommended investment to “renew our information superhighway” by adopting broadband nationally, “connecting our libraries and schools to the internet” and “our hospitals to each other through the internet.” In discussing the transportation funding he called for projects to be awarded quickly and said, “If a state doesn’t act quickly to invest in roads and bridges in their communities, they’ll lose the money.” Details of the Obama infrastructure plan, including the amount, are still being developed and have not been made public. Some reports indicate the proposal is likely to include funding for other infrastructure categories as well, including: water and sewer facilities, transit, electric power grids, water navigation and resource projects and others. Obama had earlier indicated that he would like the stimulus funds to help create “green jobs” such as energy conservation and environmental enhancements. Several public groups have released survey results over the past week indicating that there are many infrastructure projects that are ready to go out for construction immediately if necessary funding were provided. The American Association of State and Highway Officials (AASHTO) said last Friday that its survey of state transportation departments shows states could put more than 5,000 transportation projects worth $64 billion under contract within 180 days of receiving funding. The American Public Transportation Association (APTA) reported earlier this year there are 559 transit projects totaling $8 billion ready to begin if funding is made available. In addition, the National Governors Association said states have identified $136 billion worth of road, bridge, water and other projects and the U.S. Conference of Mayors released a report saying it has identified 11,391 infrastructure projects in 427 cities, including school modernization, airports and energy conservation, requiring a $73 billion investment. House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-MN) has stated that he has met with Speaker Pelosi to indicate his intention to push for $45 billion of infrastructure funding in the stimulus package as follows: $18.2 billion for highways and bridges; $6.5 billion for transit; $9 billion for environmental infrastructure such as water projects; $5 billion for Corps of Engineers; $2.5 billion for federal building efficiency; $2 billion for rail; $1 billion for aviation; $420 million for Coast Guard; and $275 million for brownfield cleanup. AGC has been informing Congress and the Obama transition team about the significant downturn in the non-residential construction market, the resulting unemployment and pointed out that the industry has the capacity to carry out the projects that would result from a boost in federal infrastructure funding. AGC has also launched the "Are You Ready" campaign which includes advocacy advertisements that are running in Capitol Hill newspapers.