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Advocacy Update: AGC Helps New Members of Congress With Key Issues
Withholding tax, water and transportation infrastructure funding high on list of legislative priorities
The 110th Congress convened in January, providing AGC the opportunity to pursue its legislative priorities. These include a renewed commitment to promote strategic federal investment in transportation and environmental infrastructure and improve the energy efficiency and utility of existing building infrastructure.
AGC has been building relationships and educating new members of Congress on issues important to the industry. In the first eight weeks of the session, AGC’s Political Action Committee hosted events for more than 10 members of Congress that allowed freshman Sen. Bob Corker (R-Tenn.), junior Sen. Norm Coleman (R-Minn.) and others working on key legislation to meet industry experts.
Congressional Leadership
The new House and Senate majorities solidified their leadership and installed a number of AGC-supported members in pertinent places. Among the many AGC allies are Sen. Ken Conrad (D-N.D.), the new chairman of the Budget Committee; Sen. Joe Lieberman (I-Conn.), chairman of the Homeland Security and Governmental Affairs Committee; and Sen. Jeff Bingaman (D-N.M.), chairman of the Energy and Natural Resources Committee. Construction-friendly Republicans—Reps. Jon Porter (Nev.) and Pat Tiberi (Ohio)—were also awarded significant Ways and Means Committee spots.
Here’s a summary of the work AGC has done to meet its legislative goals:
3% Withholding Tax
AGC applauded legislation introduced to repeal the 3% withholding tax scheduled to take effect in 2011. Reps. Kendrick Meek (D-Fla.) and Wally Herger (R-Calif.) introduced H.R. 1023, which would repeal the law requiring excessive withholding on government contracts. AGC leads the efforts to repeal the law before implementation.
Water Infrastructure
The House Transportation and Infrastructure Committee recently approved the AGC-supported Water Quality Financing Act of 2007 (H.R. 720). The measure reauthorizes the Clean Water Revolving Fund program at a level of $14 billion over the next four years which provides low-interest loans to government entities for clean water projects. The bill passed floor consideration this spring, thanks to the support from Chairman James Oberstar (D-Minn.) and the advocacy efforts of AGC and coalition partners.
Federal Construction Program Budget
President Bush’s recently released $2.9-trillion fiscal year 2008 budget proposal increases defense and security-related construction accounts but nearly freezes domestic spending. AGC is pleased that the budget would fully fund SAFETEA-LU’s guaranteed $39.6 billion for the federal-aid highway program for FY ’08; however, the budget does not propose to include the $631 million positive adjustment required under SAFETEA-LU to reflect the latest user-fee receipts.
Defense-related construction programs increased by $11 billion, including an increase of $5.6 billion for Base Realignment and Closure. Veterans’ support construction also increased by more than $400 million.
However, funding for the U.S. Army Corps of Engineers construction program was cut by more than $500 million, water infrastructure was reduced by nearly $400 million, prisons were cut by 50% and the General Services Administration construction was cut by more than $200 million.
AGC will work with Congress to increase funding for infrastructure programs, especially water/wastewater.
Transportation
The President signed the FY 2007 resolution funding the majority of federal programs for FY 2007. Under this resolution, most programs are funded at FY 2006 levels with increases to cover costs. However, the federal-aid highway and transit programs are funded at the SAFETEA-LU-guaranteed levels for FY 2007, a 1% increase over FY 2006.
AGC spearheaded an effort that resulted in 72 senators signing a support letter for full funding. AGC’s Legislative Action Center was used by members to send nearly 1,000 supporting messages to Capitol Hill, in addition to the calls and e-mails sent directly by AGC members nationwide.
AGC President Steve Massie and past President Jim Waltze testified at field hearings held by the National Surface Transportation Policy and Revenue Commission that the existing highway system is “inadequate for both current and future needs” and recommended increased funding.
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| Sen. Norm Coleman and AGC CEO Stephen E. Sandherr at the AGC Townhouse on Capitol Hill. |
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