The fiscal year starting on July 1 will be another tough one for states, with more spending cuts expected. A new survey by the National Governors Association (NGA) and the National Association of State Budget Officers (NASBO) says one area likely to be trimmed in some states is transportation. The latest biannual NGA-NASBO �Fiscal Survey of the States,� released on June 3, says that, for fiscal 2010, which ends for 46 states on June 30, state general-fund expenditures will fall an estimated 6.8%, to $612.9 billion. For 2011, governors� proposed budgets foresee a 3.6% spending rise, but that still would
The fiscal year starting July 1 will be another tough one for states, with more spending cuts expected, says a new survey by the National Governors Association and National Association of State Budget Officers. Photo: National Governors Association NGA's Scheppach (left) and budget officers' Pattison discuss states dire fiscal picture. The groups' latest biannual “Fiscal Survey of the States,” released June 3, says that for fiscal 2010, which ends for 46 states on June 30, their total general-fund expenditures will be down by an estimated 6.8%, to $612.9 billion. For 2011, governors’ proposed budgets are forecasting a 3.6% pickup in
While the American Recovery and Reinvestment Act has buoyed high-profile sectors such as transportation and energy, in Indian Country—the sovereign lands of 562 American Indian tribes across the United States—$3 billion in stimulus funding quietly has moved into development backlogged road improvements, hospitals, correctional facilities and schools. Many of the projects were planned but remained unfunded for years, in some cases for more than a decade. Photo: Kumin Associates/Mahlum Architects A $91-million stimulus-funded tribal hospital project on the Seward Peninsula in Nome, Alaska, is raised 4-ft above grade to avoid permafrost. The ARRA windfall gave cash-strapped tribes more capital than
Construction equipment vendor Deere & Co. posted a second-quarter net income of $547.5 million, jumping 16%, on sales of $7.1 billion, up 6%, over the same period last year. Construction and forestry machine sales rose 52% for the quarter and earnings shifted into the black due to increased shipments, favorable currency exchange rates and price increases of about 2%. Deere’s construction and forestry division, bouncing back from last year’s anemic lows, booked an operating profit of $36 million for the quarter, compared with a quarterly loss last year of $75 million. The Moline, Ill.-based company upped its earnings forecast for
With deadlines for major construction projects for London’s 2012 Olympics looming, the United Kingdom’s new coalition government is pledging that the Olympics will not be given special protection from public spending cuts promised by the new government, elected on May 6. Secretary of state for culture, Olympics, media and sport, Jeremy Hunt, says savings in the Games’ $13.4-billion construction budget will be sought.
The first quarter was tough for two leading U.S. construction aggregates producers, with high diesel fuel costs, record bad weather and slow-moving stimulus work combining to hammer revenue and profits for Vulcan Materials Co., Birmingham, Ala., and Martin Marietta Materials Inc., Raleigh, N.C. But both saw some improvement going into the second quarter and predict more stimulus demand by year’s end. Photo: Vulcan Materials Co. Aggregates could pick up in demand this year as stimulus-funded highway jobs progress. For the first quarter ended on March 31, Vulcan, the largest U.S. aggregates maker, reported on May 3 a $39-million loss—$6 million
Some industry groups are concerned the Environmental Protection Agency’s interpretation of the fiscal 2010 law appropriating funds for the drinking- and clean-water State Revolving Loan Fund programs could jeopardize attempts to pass a long-awaited five-year SRF reauthorization bill in the Senate. The Senate Environment and Public Works Committee approved a five-year reauthorization bill in May 2009. The bill, known as the Water Infrastructure Financing Act of 2009, would authorize $20 billion through 2014 for the clean-water SRF and $15 billion for the drinking-water SRF. In March 2009, the House authorized $13.8 billion for the clean-water SRF over five years. But
The U.S. Dept. of Transportation said on May 7 that it is proposing changes in its requirements for disadvantaged-business-enterprise firms (DBEs), which include small companies owned by women and minorities. The last highway-transit authorization, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: a Legacy for Users and other statutes, set a goal of having at least 10% of the federal funds for highways, transit and airport construction go to small businesses controlled by those who are "socially and economically disadvantaged." The proposed rule, to be published in the Federal Register on May 10, would increase the ceiling on a DBE
Federal contracting officers will no longer be required to withhold 10% of fees for architectural and engineering services, following a four-year effort of industry lobbying. Published in March by the Federal Acquisition Regulation Council, the new rule says retainage is discretionary. If contracting officers choose to require retainage, it can be set below 10%. “It shocked me … I couldn’t let it go unchallenged.” — Paul Renker, Architect The new rule also clarifies that “any amounts retained should not be held over beyond the satisfactory completion” of the contract. Previously, retainage could be held until completion. Small businesses applaud the
Used construction-equipment values are creeping up after bottoming out last summer, a sign that credit is looser and fewer firms are ditching their fleets. Values rose for the fifth month straight in February, posting a 1.9% monthly gain and a 6.2% six-month increase, according to Beverly Hills, Calif.-based appraiser Rouse Asset Services. Monthly gains of 13.1% for straight-boom lifts, 7.2% for articulating-boom lifts, 3.5% for telehandlers and others propped up values, while prices declined 1.4% for dozers and 0.8% for compactors. However, values still are 26.6% below April 2007’s market peak. Source: Rouse Value Index. Average Orderly Liquidation Value for
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