NewsBreak! Articles > December 17, 2008

AGC'S ECONOMIC STIMULUS EFFORTS

The purpose of this memo is to update you on AGC’s ongoing efforts on the economic stimulus package.  We have been involved in this effort on many levels and I wanted to make sure that you were aware of our activities. 

• On Nov. 25, I met with members of the Obama transition team to discuss infrastructure projects to be considered in a stimulus plan. While that meeting was held at the Department of Transportation, AGC submitted a white paper that discussed all available infrastructure components including water and wastewater projects, schools, airports, and public building projects, waterway and port projects, as well as surface transportation projects.  During the meeting, I stressed that the new Administration should implore Congress not to use the stimulus plan as an opportunity to earmark special projects for fear that it would provide ammunition for infrastructure opponents. I also requested that the Obama Administration resist the temptation to impose project labor agreements (PLA’s) on projects in the plan. Encouraging or requiring PLA’s on these projects would undermine the ability to get approved projects started in a prompt fashion.  It was emphasized that the bill should be as “lean” as possible and not be laden down with unrelated policy issues, such as card check, that could delay or derail its passage.

• AGC testified on October 29 before the House Transportation and Infrastructure Committee on the economic impact of public works improvements, and we submitted testimony before the House Ways and Means Committee on tax provisions that would encourage construction activities.

• AGC Congressional Relations staff has been in touch with relevant Congressional committee and leadership staff to make the case that the industry is prepared to meet the challenge of thousands of public construction projects being let in a short time frame.  We have used construction unemployment figures as well as economic news on declining construction volume to make a credible argument that the industry is far from operating at capacity. 

• AGC is working within our existing infrastructure coalitions and with our industry allies to place advertisements in relevant publications on transportation, water and wastewater, and water transportation elements of public infrastructure.

• AGC has developed our own advertisement that will be placed in Roll Call, the most widely read publication in Congressional offices, that makes the case for broad infrastructure investment in the stimulus package.  A copy of that ad is attached in the email accompanying this memorandum.  At the same time, we are considering other media outlets for the ad.  We are also forwarding the ad to all of our chapters for use in their own publications.

• We are extending our grass roots capabilities in this effort.  We will be sending the aforementioned ad in all of our occupational division newsletters (as well as displaying it on our website).  There is a mechanism that encourages the reader to “click thru” to our website to sign an online petition that reiterates the ad content. The website will also provide a link to AGC’s Legislative Action Center (LAC) web page to send a letter to their Congressman and Senators in support of infrastructure investment.  Moreover, we are encouraging AGC members to ask their employees, subcontractors, and suppliers to participate in the electronic messaging to Congress.

• AGC has invited AIA and specialty contractor associations to a meeting next week to identify building construction projects and tax incentives that promote energy efficiency in buildings that can be forwarded to policy makers.  It is our objective to form a coalition of like-minded associations to ensure that public building issues are not overlooked in the stimulus package. 

• We have surveyed AGC members about their capacity to perform work and their history of getting projects done in less than 12 months from letting to completion.

• We have assembled state-by-state economic impact information that we will release to our Chapters and to the media next week.  The information shows the rate of construction unemployment in each state, the impact of $1 billion in infrastructure investment on Gross State Product, the impact on personal earnings in the state and the number of jobs created on the investment.

• We are working to assemble the most comprehensive list of projects that are “ready to go” in each state.  We have information now from state DOT’s, transit agencies, and water and wastewater sources.  We are working with the National Association of Governors and the National Association of State Facilities Administrators to fill in some of the gaps.

We will continue to look for all opportunities to make a clear and credible case for infrastructure investment and to include all available components of public infrastructure in the final package.

Stephen E. Sandherr
Chief Executive Officer
The Associated General Contractors of America
2300 Wilson Boulevard, Suite 400
Arlington, VA 22201
703-837-5312 (Direct)
703-837-5400 (Fax)
sandherr@agc.org
www.agc.org