T&I chairman presents $85 billion plan at recovery forum

Jan. 16, 2009

On Jan. 9, James L. Oberstar, chairman for the House Committee on Transportation and Infrastructure, made a statement before the House Democratic Steering and Policy Committee regarding job creation and economic recovery.

On Jan. 9, James L. Oberstar, chairman for the House Committee on Transportation and Infrastructure, made a statement before the House Democratic Steering and Policy Committee regarding job creation and economic recovery.

“The state of the economy is grim and requires our immediate action,” Oberstar said. “More than 1.2 million construction workers are on the bench; the construction industry is suffering the highest unemployment rate (12.7%) of any industrial sector; and construction firms are operating on the margin or worse. Three stark, compelling reasons for decisive action: to invest in, rebuild our economy and put Americans back to work.”

Oberstar stressed how historically, investment in public infrastructure has created and sustained jobs in difficult economic times, and can do so again today.

In September, the House of Representatives overwhelmingly passed H.R. 7110, the “Job Creation and Unemployment Relief Act of 2008.” The bill provided $61 billion to help restore the economy, including $30 billion for highway, bridge, public transit, Amtrak, airport, wastewater, and Corps of Engineers infrastructure investment within the jurisdiction of the Committee on Transportation and Infrastructure. These funds were to be distributed by existing statutory formulas or administrative competitive selection processes; the bill included no earmarks.

"Regrettably," said Oberstar, "the White House threatened to veto the bill and Senate Republicans killed it prior to the September adjournment. Had the White House not opposed that bill, construction workers would already be starting new jobs today."

The need for real jobs has since grown more acute. This calls for an expanded economic recovery and jobs creation initiative, to be enacted as soon as possible.

The main elements of his proposal, Oberstar said, were at least $85 billion for infrastructure investment, including $30 billion for highways and bridges; $12 billion for transit; $5 billion for rail; $5 billion for aviation; $14 billion for environmental infrastructure; $7 billion for the U.S. Army Corps of Engineers; and $10 billion for Federal buildings.

“Infrastructure investments will put construction workers back on the job, and yield lasting benefits by improving our deteriorating infrastructure,” Oberstar said. “At current levels of investment, this country is falling further and further behind on our physical infrastructure needs, and that has devastating impacts on our economic growth, our quality of life, and our safety.

“The economic news just keeps getting more dismal each week, growing worse each day. We must act now. It is time to invest in, rebuild our economy, and put back to work.”

ARTBA President and CEO Pete Ruane released a statement Jan. 16 regarding the proposal.

“The economic recovery plan announced by the U.S. House of Representatives leadership would provide an important first installment on the capital investment needed to fulfill President-elect Obama’s pledge to repair and upgrade the nation’s aging highway and bridge network, transit systems and airports. As the president-elect said, ‘This plan is a significant down payment on our most urgent challenges.’

“This package should be followed-up later this year with robust, multi-year authorizations of the federal airport and surface transportation programs that are innovative, forward looking and aimed at increasing the nation’s economic competitiveness through strategic, long-term capital investments.

“We cannot stress enough how important it is for the Congress and president to authorize the underlying highway, transit and airport programs this year. Without that action, the American jobs that will be saved and created through the economic recovery package will again be in jeopardy due to the precarious position of the federal Highway Trust Fund.

“We urge Congress to include in the final economic recovery bill provisions that ensure transparency and accountability for every transportation dollar invested through it, so the American taxpayer sees the value of federal transportation investments.

“For this plan to work, there needs to be a sense of urgency from all public agencies receiving recovery funds. Our members are ready and able to quickly put these funds to work sustaining and creating American jobs.”

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