Congressional Budget Office Questions Speed of Infrastructure Funding- Report Disputed

The nonpartisan Congressional Budget Office earlier this week released a report giving its assessment of the proposed economic stimulus legislation and projected that less than half of the funds are likely to be used before the end of fiscal 2010. The CBO said the balance would likely be spent over the next several years, after the recession is projected to end. The report specifically questions how quickly the infrastructure funds will make their way into the economy. Republican leaders said the analysis shows that the package wouldn't create the promised jobs.   AGC and our coalition partners the Transportation Construction Coalition, Americans for Transportation Mobility and AASHTO responded to the report with a letter to Congress pointing out that CBO's analysis of the infrastructure spending is based on historical data which does not really apply to current situation. The letter says "This is not business as usual!"  State DOTs, the construction industry, materials suppliers and labor are geared to move "ready to go" projects quickly to contract and construction and thus create thousands of jobs in this fiscal year. House Speaker Nancy Pelosi (D-CA) and the leadership of the House Transportation and Infrastructure (T&I) Committee also responded pointing out that CBO did not have the full data when they made that report. T&I Committee Chairman Jim Oberstar (D-MN) met with CBO director yesterday who admitted that they did not have the full data on which to base their projection.