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AGC Update July 2011. Review of Election Results $3.5 billion spent est. New Senate numbers 53 to 47 (59 to 41) New House numbers 187 to 239 (255 to 178)

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Presentation on theme: "AGC Update July 2011. Review of Election Results $3.5 billion spent est. New Senate numbers 53 to 47 (59 to 41) New House numbers 187 to 239 (255 to 178)"— Presentation transcript:

1 AGC Update July 2011

2 Review of Election Results $3.5 billion spent est. New Senate numbers 53 to 47 (59 to 41) New House numbers 187 to 239 (255 to 178) Big Issues Included: Stimulus: 38% helped economy Health Care: 58% favored repeal Climate Change: 56% unwilling to pay more for energy

3 Preview of Election 2012 Senate Vulnerables 12 (10D/2R) House Vulnerables 48 (21D/27R) Presidential Redistricting Issues on the voters minds today Economy, Budget Deficit (inefficiency of government), Wars/geopolitical concerns, Ethical Integrity, Bipartisanship 3

4 General Election: Independents Hold Keys 2006:57% DEM 39% GOP 2008:52% DEM 44% GOP 2010:38% DEM 56% GOP No permanent majorities and at this point little focus on the middle

5 Primaries: TEA party and Progressives Tea Party: No formal platform or leadership Balance the budget/cut taxes/reduce debt Repeal and replace health care Progressive priorities Budget cuts = attacks on women, minorities, poor, environment and elderly Big oil companies, big banks and wealthy Americans need to be punished or taxed more Medicare/social security Will new members get enough OJT

6 Major Decision Points 2011 Spending bill HR 1 2012 Federal Budget passed the House Debt limit needs to be raised (Aug. 2) GOP want cuts to = debt limit increase Historically majority party passes debt limit Global deal may be best opportunity for new infrastructure investment and tax policy

7 Comparing the Budgets Cumulative Deficits (in Billions) FY 2012-2016FY 2012-2021 Obama Budget-$4,190-$9,500 Ryan Budget-$3,101-$5,450 Fiscal Commission-$2,903-$5,320 Ryan v. Obama-$1,089-$4,050 Ryan v. Commission$198$130

8 FY 2012-2020 Totals BudgetsOverall TotalsIn billions ReceiptsSpending Obama$32,392$40,109 Ryan$30,516$35,219 Commission$34,295$38,441

9 Construction Matters to the Economy Economic prosperity and quality of life are driven by the construction industry Hospitals, Universities, Manufacturing Housing, Data Centers, Schools, Public Buildings, Roads, Sewers, etc. Construction improves international competitiveness Construction creates jobs

10 Cost of Inaction/Benefits of Action Impact on labor market 20% of jobless, 5% of total employment Public and private sector will delay needed improvements Strong belief that benefits far out weigh costs Both parties should have legitimate reasons to help construction

11 FY 2011 Spending Bill FY 2011 Spending Deal $40 B in total cuts for remainder of FY 2011 Compared to 2010 Enacted Federal Construction Accounts Slashed by $22B GSA – FY 11 program wiped out (-91%) Corps of Engineers – FY 11 Cut by $600M (-11%) Military Construction – FY 11 Cut by $6.2B over FY10 Cut is $1.3B under President’s FY11 Request (-21%) VA – FY 11 Cut additional $250M (-13%)

12 Water Infrastructure Goal: Support reauthorization and increase investment in water resources development and clean water infrastructure SRF reauthorization Water trust fund Private Activity Bonds Appropriations

13 Building Construction GSA funding slashed Operations & Maintenance down $271m despite fed avg spending $6.91 per sq ft compared to industry avg of $7.60. Repairs and alterations cut from $466m to $35m Rents cut from $5.2b to $4.7 despite contracts for $5.2 13

14 What About the Highway Program? Current baseline about $52.7 billion for highways and transit ($316b over 6 years) Ryan budget and Highway Trust Fund only support $38.1 billion annually over the next 6 years (hwy drops from $43b to $31b) That is $14.6b less annually (about 28% less)

15 Transportation Infrastructure Goal: Support Multi Year Surface and Aviation Authorization Bills New and improved revenue sources Reform program- focus on national priorities Allow more state flexibility Speed up project delivery

16 Tax and Fiscal Improvements 3% withholding repeal Death Tax Net Operating Loss Carry Back Make tax cuts permanent Federal incentives for diesel retrofit

17 3% WITHHOLDING Effective date 1/1/2012 IRS enforcement date 1/1/2013 AGC survey to lead to press announcement AGC Tax & Fiscal Affairs Ctte: no compromise AGC grass roots push Only tax vehicle likely to be budget deal as part of debt limit vote

18 Regulatory Concerns Estimated annual cost of regulatory compliance is $1.187 trillion Agencies spend $54.3 billion annually to administer and police regulations 68,598 pages printed in the fed register in 2009 4,043 regulations now in the pipeline, 180 are “economically significant” rules In 2009 agencies issued 3,503 final rules. The President signed only 125 bills into law in 2009. 18

19 Improving Regulation and Regulatory Review In January… EO 13563 “how best to promote retrospective analysis of rules that may be outmoded, ineffective, insufficient, or excessively burdensome.” Stormwater/ELG, 404 Permits, Lead Paint, Fly Ash, Hearing Conservation, MSDs Election 2012 19

20 EPA Stormwater Permit Stormwater runoff from construction sites major EPA enforcement priority EPA revising Gen’l Construction Permit (GCP) AGC had convinced EPA not to impose numeric limits on runoff Defended EPA in suit vs. greens; lost on appeal EPA CGP covers 4 states, DC and PR but serves as template

21 EPA Stormwater Permit Under current permit, operator chooses BMP’s Proposed permit prescribes BMP’s and sets numeric limits (NTU) --30 day delay before working --file permit electronically --must record discharges in logbook and report violations --$37,500 per day fine

22 EPA Stormwater Permit At AGC’s request, EPA extended comment period to 7/12 AGC held webinar on 6/1 Developing template comment letter for chapters Citizen suits could imperil construction projects AGC considering legal/legislative remedies

23 NLRB/DOL Boeing case “Micro” unions “quickie” elections “persuader” disclosure --file with DOL --all activities related to influencing elections

24 GOVERNMENT PLA’S Continuing successful FOIA strategy House has had 2 votes on issue—lost both Attacking GSA 10% tech factors bonus --legal memo --awaiting GSA response

25 FEDERAL CONTRACTORS DISCLOSURE Draft Administration memo would require disclosure of political contributions Includes “independent expenditures” Covers “officers and directors” and includes “affiliates and subsidiaries.” Democratic blowback (Hoyer, Black Caucus) Appropriations rider

26 Bad Executive Orders Government Mandated Labor Agreements EO requires consideration on projects >$25m Final rule implemented April 13, 2010 AGC FOIA strategy encourages careful evaluation Disclosure of Political Spending Proposed EO would require Federal contractors to disclose political and “likely” political spending of companies and board members “High Road” contracting proposal OMB has declared the “High Road” proposal “dead” 26

27 Grassroots Activists 27

28 Grassroots Activities Communicate, educate, counter incorrect information Contact elected officials (www.agc.org/lac)www.agc.org/lac Contact local media Invite to speak at chapter meetings & invite to project sites 28

29 Conclusions Programmatic cuts likely to continue Polarized parties will find it difficult to come together in 2011 or Presidential election year Deep cuts heighten focus on value and ROI Bright spot may be global budget deal, but private construction drives the market Regulations hit both public and private mkts Congress/Regulators needs to hear from you! 29

30 Questions, Comments, Advice?


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