On November 9, the co-chairs of the National Commission on Fiscal Responsibility and Reform laid out a preliminary proposal to cut the federal deficit by hundreds of billions of dollars.  The sweeping proposal - which has garnered opposition from liberals, labor unions and conservatives, including most members of the commission itself - includes several items related to the construction industry, including the AGC-endorsed recommendation to increase the federal gas tax.  The co-chairs and members of the commission made it clear that the proposal was just a starting point endorsed by only the co-chairs. The commission report will be official only if supported by 14 of 18 commission members.

In addition to joining other transportation stakeholders in sending a letter to the commission in support of a proposal by Senators Tom Carper (D-Del.) and George Voinovich (R-Ohio) to increase the gas tax by 25 cents, AGC sent a detailed letter to the commission recommending a 25 cent gas tax increase to be divided between deficit reduction and the Highway Trust Fund.  AGC has and will continue to meet with the members of the commission in advocating for the increase to be included in the commission's final report, due December 1.

The draft proposal also calls for cutting billions of dollars in domestic and military spending and remaking the tax code.   Spending cuts of note to the construction industry are:  the termination of low-priority Army Corps of Engineers construction projects (beach erosion and rural water treatment program run by the Corps); cuts to the U.S. Embassy construction budget (largely in security reduction);  elimination of runway expansion and capital investment grants to large and medium-sized hub airports through the FAA's Airport Improvement Program; and an increase in the Inland Waterways Trust Fund fuel tax to cover all costs of construction and maintenance.  The plan would also ban Congressional earmarks.

On the tax code front, the plan would end or cap a wide range of tax breaks including the deduction for home mortgage interest and dependent children.  The plan calls for a higher tax rate on capital gains and dividends while offsetting that increase by lowering individual rates.  The plan would also lower the top corporate tax rate of 35 percent to as low as 26 percent.

In an attempt to tackle the problems with Social Security, the plan calls for a gradual increase in the retirement age to 68 by 2050 and 69 by 2075, a reduction of Cost of Living Adjustments, and cutting benefits by changing the current benefit formula.  The plan also seeks to address the Medicare "Doc Fix" through various payment reforms, cost-sharing and malpractice reform.

The Federal Railroad Administration today announced the award of $2.482 billion in High-Speed and Intercity Passenger Rail grants. Fifty-four projects in 23 states and several multi-state regions are included in the grant awards. These awards are in addition to the $8 billion in grants for projects approved earlier this year through the American Recovery and Reinvestment Act (ARRA). Projects in 31 states and the District of Columbia were funded under ARRA awards.

According to AASHTO, many states are already moving ahead in implementing the ARRA funded projects. In Florida, for example, contractors are testing soils and surveying property along I-4, in anticipation of the Tampa-to-Orlando high-speed rail line expected by 2015. Illinois is upgrading 39 miles of Union Pacific railroad track for high-speed service between Alton and Lincoln. Maine is replacing 30 miles of track between Portland and Brunswick in anticipation of a Boston-to-Brunswick line with new stations in Freeport and New Brunswick.

The Office of Management and Budget (OMB) recently released new reporting requirements for recipients of federal financial assistance, including grants and loans, in compliance with the Federal Funding Accountability and Transparency Act.

Included in the rules is a requirement that recipients report the total compensation of its five most highly compensated individuals. AGC contacted the Federal Highway Administration (FHWA) to clarify that this requirement does not apply to contractors working on contracts funded through the federal-aid highway program. FHWA's General Counsel has verified that these requirements do not apply.

The House and Senate have each passed a three-month extension of the Federal Aviation Administration (FAA) authorization. Program and taxing authorization expired on September 30, 2007 and FAA has been operating under multiple short term extensions ever since. 

The long-awaited multi-year FAA bill is close to completion but will not be finalized before the current extension expires on September 30, 2010.  It is likely that the bill will be considered in the lame-duck session of Congress following the November mid-term elections. AGC supports a long-term FAA reauthorization.

The status of President Obama's $50 billion infrastructure plan that was announced on Labor Day still remains unclear.  While Congress has returned from their August recess, no decisions have been made on if or when they would consider moving additional funding for infrastructure as proposed by the president. 

AGC met with several Members of Congress and their staff, and it appears unlikely that they will make any decisions before the mid-term elections on November 2.

AGC will continue to monitor and report on any new developments from Congress or the Administration.

AGC, as part of the Transportation Construction Coalition and Americans for Transportation Mobility, pushed for passage of the long-delayed highway and transportation bill Wednesday in Des Moines.

The groups began a new national advertising campaign to push for federal funds to fix aging roads and unsafe bridges and improve transit services in August, and unveiled new bus, radio and print advertisements in Des Moines.  The effort, which will cover dozens of states during the coming weeks, is designed to educate the public about why passing a federal transportation bill is essential to improving road conditions in states like Iowa. AGC has hosted events in South Dakota and South Carolina as well.

Read the press release here. The news was covered by the Des Moines Register, as well as local television and radio stations.

At a Labor Day event in Milwaukee, Wisconsin, President Obama announced a plan to request an up-front investment of $50 billion for transportation infrastructure. While there are few specific details, AGC has learned from a senior U.S. DOT official that President Obama is committed to moving a six-year surface transportation bill in 2011.

A significant portion of the $50 billion will be available in the first year for investments in highways, transit, airports and rail. It appears these funds are supplemental to funds that would already have been provided for these programs in FY 2011 (beginning October 1, 2010), but it is unclear whether these funds would move as part of reauthorization or as a separate legislative vehicle. The amount allocated to each program is also not specified.

The president indicated that this increased funding will be paired with the administration's vision for reforming existing transportation programs over the next six years. It appears that the proposal will include the long awaited "principles" for reauthorization of SAFETEA-LU the administration has been expected to deliver.

Additional details from the White House are available here.

In response to the Obama Administration's proposal for new transportation investment, AGC noted that countless thousands of construction workers will have a better chance of retaining their jobs, but that the most effective sequel to the stimulus is passage of a fully funded six-year surface transportation bill.  AGC's reaction was covered by the LA Times, Baltimore Business Journal and Engineering News-Record.

It is highly unlikely that Congress will do anything in regards to the president's request prior to the November elections. AGC will follow developments closely and provide details as they become available.

The Transportation Construction Coalition and Americans for Transportation Mobility continued efforts for passage of the long-delayed highway and transit bill on Tuesday with the unveiling of new billboard and online advertisements in Columbia. Majority Whip James Clyburn (D-S.C.) participated in the event and shared his support for passing a multi-year surface transportation bill. Clyburn agreed that enacting a highway and transit bill will be the best boost we can give to the economy right now.

The effort, which will cover dozens of states during the coming weeks, is designed to educate the public about why passing a federal transportation bill is essential to improving road conditions in states like South Carolina.

In mid-August, AGC helped launch the multi-state campaign in South Dakota, and will unveil new ads in Iowa next week.

Read about the effort and take action here.

The news was covered by several local television stations, including WBTV,WACH andWSAV, in addition to the Charleston Post and Courier, Columbia Business Report and Charleston Regional Business Journal, to name a few.

As part of the Transportation Construction Coalition and Americans for Transportation Mobility, AGC launched a new national effort to push for passage of the long-delayed bill that provides federal funds to fix aging roads and unsafe bridges. In conjunction with AGC of South Dakota, the campaign began with the unveiling of a new billboard, and radio and print advertisements in Rapid City, Sioux Falls and Aberdeen.

The effort, which will cover dozens of states during the coming weeks, is designed to educate the public about why passing a federal transportation bill is essential to improving road conditions in states like South Dakota. The Rapid City Journal announced the start of the campaign on the front page this week, and the story was also covered in the Argus Leader and on the local ABC station, among other local media outlets.

The news conferences were hosted by the state's Secretary of Transportation Darin Bergquist.  The mayor of Rapid City and the Sioux Falls city engineer also took part in the events.

In addition to funds contributed by the coalitions to support these events, AGC of South Dakota contributed an additional $10,000 to help finance the effort. Visit AGC's website for more information and to let Congress know you support long-term investment in transportation.

Nearly a dozen AGC member companies, including host George J. Igel & Company, participated in an event arranged by the Ohio Contractors Association with Transportation Secretary Ray LaHood and Representative Mary Jo Kilroy (D-Ohio) in Columbus.

During the event, contractors and their employees expressed concern over what would happen when stimulus money runs out. Secretary LaHood and Rep. Kilroy agreed that a six-year transportation bill would be a logical sequel to the stimulus.

Watch the local NBC affiliate's coverage here or read coverage from the Columbus Dispatch.