Along-awaited economic stimulus bill continues to advance on Capitol Hill as Democrats push to meet their goal of having a final measure on President Barack Obama’s desk by about Feb. 16. But Senate Republicans continue to criticize the packages as being too big and contend that not enough of the money will turn into programs or projects that create jobs in the next year to two years. Still, the GOP may not have the votes to derail the packages. Photo: AP/Wideworld Sen. Thad Cochran (seated) confers with Senate colleague last year. Todd Hauptli, American Association of Airport Executives’ senior executive
The formal negotiations on the $825-billion economic stimulus start now. Two Senate committees on Jan. 27 are scheduled to begin discussing, and probably amending, portions of their versions of the package. The Senate Appropriations Committee is to take up a $365-billion discretionary-spending section, drafted by the panel's new Chairman, Daniel Inouye (Hawaii). The Finance Committee will take up a proposed $275 billion in tax cuts and about $180 billion in funding, including aid to states, the unemployed and those on food stamps. Both committees are slated to begin their "markup" sessions at 10:30 a.m. At $825 billion, the Senate committees'
The Stimulus Bill, Sector by Sector 01/21/2009 Compiled by Tom Ichniowski Construction-related spending in House Democrats' stimulus proposal, released Jan.15, could approach $160 billion. But a precise figure is hard to determine because some of the accounts that would receive funding under the plan can go for other types of capital spending besides infrastructure or buildings. A look at the House Appropriations Committee's explanatory report on the bill shows substantial funding for a wide range of construction programs across many federal departments and agencies. Stimulus aid for buildings is especially widespread among agencies. TRANSPORTATION [$43.75 billion] DOT Federal-aid highways, $30 billion
Rail, marine and airport officials are pragmatically waiting for the final version of a stimulus bill. Everyone would like more stimulus project funds, but they would also like policy and programming changes. Such changes could be reflected in attempts to reauthorize the six-year transportation trust fund and the airport improvement program later this year. At a Transportation Research Board session held earlier this month in Washington, D.C., Maryland State Highway Administrator Neil Pedersen said many officials were calling the stimulus request process a “dress rehearsal” for reauthorization. Related Links: Proposal in House Fires Up Debate Does Massive Spending Help or
President Obama’s promised economic stimulus package could not come at a better time for the cash-strapped state of California, though a bailout of a massive projected budget deficit appears unlikely. With a Feb. 1 deadline that state controller John Chiang says would pretty much dry up the state’s cash flow, the budget deficit—estimated at $42 billion through June 2010—will mean more important infrastructure construction projects are likely to be halted or even cancelled. Related Links: Proposal in House Fires Up Debate Does Massive Spending Help or Hurt in Long Run? Modest Program Favors Jump-Start Fix-up Effort Highway Aid Has Some
Even with Congress’ proposed economic stimulus package, which could drive tens of billions of dollars to construction equipment sales and extend tax benefits, financial help provided by the government will come too late to boost this year’s economy, industry observers say. For that reason, capital-goods suppliers are already prepared to write off 2009 as a dismal year and are looking ahead to 2010. Photo: Joe Florkowski / ENR Turnout at annual equipment dealers’ show was down 20% to 25% over last year. Related Links: Proposal in House Fires Up Debate Does Massive Spending Help or Hurt in Long Run? Modest
Industry groups are offering modest praise for the funds allocated for water infrastructure in the $825-billion economic stimulus package, saying the funding levels are a good start. “It’s a huge increase over what’s been appropriated in the past,” says Karen Lapsovic, director of tax, fiscal affairs and infrastructure finance at the Associated General Contractors. But the same industry groups are quick to point out that much more is needed to even to begin to fix the nation’s ailing water infrastructure. Related Links: Proposal in House Fires Up Debate Does Massive Spending Help or Hurt in Long Run? Modest Program Favors
Driven by a need for speedy delivery and an overarching demand for energy-efficient systems, federal buildings appear ready for a significant facelift in the near future, if proposed stimulus funds come through. Photo courtesy of Sunpower Corp. Energized. Projects like adding photovoltaics to Dept. of Energy headquarters are likely winners. Related Links: Proposal in House Fires Up Debate Does Massive Spending Help or Hurt in Long Run? Modest Program Favors Jump-Start Fix-up Effort Highway Aid Has Some Strings Attached Advocates Hope To Fly, Sail or Roll To Reform Funds Will Energize Long-Delayed Projects A Big Drop, But It’s A Really
Highways and bridges are major winners under House Democrats’ economic stimulus proposal, garnering $30 billion, the largest sum for any single public-works sector in the $825-billion package. If the $30 billion holds through further congressional action, it would represent about a 75% bonus on top of the $41-billion federal highway obligation ceiling for all of 2008. John Horsley, American Association of State Highway and Transportation Officials’ executive director, says, “We of course have the capability to do more [than $30 billion], but that’s a very healthy boost to highway investment and we’re very pleased.” Related Links: Proposal in House Fires
In his Jan. 20 inaugural address, President Barack Obama focused on broad themes, asking his vast audience to �begin again the work of remaking America.� He said the economy needs �action, bold and swift� and then got more specific, talking about building �roads and bridges and electric grids.� That phrase no doubt grabbed the attention of recession-wounded construction officials who hope that their immediate priority, an infrastructure-oriented economic stimulus bill, also will rise to the front of the new President�s agenda. Photo: AP/Wideworld Obama called for �action, bold and swift� to aid economy, citing roads, bridges. Photo: AP/Wideworld Pelosi calls
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