Construction Officials Lobby to Protect Funds

A coalition of construction trade association representatives recently told Gov. Gray Davis that they oppose the proposed budget cuts that affect the state's transportation plan.

The group asked the governor to leave Proposition 42 monies intact and to prioritize new construction projects for spending.

They also asked Davis to lead a joint effort to lobby federally elected representatives to take a united stand to protect and grow California's share of the federal transportation dollars.

Members and staff of Associated General Contractors, along with Operating Engineers Local No. 3 and No. 12 recently met with Davis and Caltrans Director Jeff Morales. The business and labor representatives asked the state officials to find solutions to the state's budget crisis that do not adversely affect construction.

During the meeting, Morales announced that Caltrans would be releasing $2 billion for construction and maintenance projects beginning in April. The governor agreed to appoint a special task force, from within the group to meet with Morales and the California Transportation Commission to help prioritize projects.

AGC said it will lead a grassroots effort to encourage members to show opposition to using transportation monies to balance the state's budget.

At the national level, a funding compromise of $31.8 billion has been approved for the 2003 Highway Program.

House and Senate conferees have reached agreement on this compromise that includes the 11 appropriations bill that had not been previously approved.

Both houses of Congress are expected to approve the bill. Associated General Contractors noted that although the White House had targeted some program funding levels that could trigger a presidential veto, including the $31.8 billion for highways, Vice President Dick Cheney was involved in the final negotiations on the bill and the president is expected to sign it.

Under the terms of the continuing resolution that has been keeping government agencies operating pending the final outcome of this appropriations bill, FHWA has been providing states with funding at a $31.8 billion rate since the fiscal year started on Oct. 1, 2002. This is the same funding level for highways as in FY 2002. Also included in the bill is $3.4 billion for the Airport Improvement Program. This represents a major victory for the highway construction industry, AGC noted.

Last year, the administration's budget requested $23.2 billion for the highway program for FY 2003. Following an outpouring of concern from the industry, the House approved $27.7 billion for the program and the Senate approved $31.8 billion. Since agreement could not be reached before the start of the fiscal year, it became necessary to include transportation appropriations as part of the omnibus measure.