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Montana Senator Max Baucus Discusses Key AGC Issues
Requests support for Highway Trust Fund bill
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| Sen. Max Baucus drives a back hoe in Kalispell, Mont., in October 2007. |
MC: Why is it important to you to have “work days,” during which you work side by side with your constituents? What have you learned while working on a Montana construction site?
Baucus: My work days give me the perfect perspective. They allow me to be sure I understand the situations and circumstances of every Montanan. I grew up on a ranch, so I know the hard work and dedication that it takes to work in construction. My work days have only served to solidify my great admiration of builders. There is something truly fundamental about construction. It is your sweat and effort that turns mere pieces of wood into homes, businesses and churches. It is truly a noble profession.
MC: Why did you choose to identify transportation infrastructure as one of your key issues?
Baucus: Frankly, little else matters if our infrastructure is weak. In order to do business and create good-paying jobs, folks need to be able to get where they are going. Montana is a big state and our transportation infrastructure is vital to our economy.
MC: What are your goals as a senior member on the Senate Environment and Public Works Committee and chair of its Transportation and Infrastructure Subcommittee?
Baucus: We need to be constantly improving our general infrastructure to make sure we are ready for whatever the future brings. Montana’s, and indeed America’s, best days are still ahead, and we must be ready with a strong infrastructure. I’m always fighting for highways and bridges, and I want to make sure our airports and train depots are full of business people and tourists. This year, that means fighting the President’s budget, which cuts funding for roads, highways, bridges, passenger rail and air service to rural areas. But rest assured, I am up to the challenge.
MC: As chairman of the Senate Finance Committee, you have taken the lead in finding revenue to ensure that the Highway Trust Fund does not go into deficit. What can the construction industry do to support your efforts? When can we expect a solution?
Baucus: The contractor community can be helpful just by mobilizing support for the bill that I put together to fix the Highway Trust Fund. The measure, which has already made it out of the Senate Finance Committee, would restore approximately $5 billion in funding. This money is needed to ensure that we can continue to have the infrastructure we rely upon to maintain our way of life, our national economy and our position in the world economy. Raising awareness and having contractors contact their senators and representatives in support of the legislation would be helpful. I’m confident this issue will be addressed on the floor of the Senate in the coming year.
MC: You chose to vote to override the President’s veto on the Water Resources Development Act bill. Why do you believe that this legislation is important?
Baucus: Mark Twain once said, “Whisky is for drinking, and water is for fighting.” That saying holds true for Montana and Washington. There was no way I was going to let the President or anyone else stand in the way of Montanans or any other American getting access to the clean water that they need and that they deserve. I fought to override the veto on WRDA because it was the right thing to do.
MC: The ASCE Report Card on Infrastructure gives water and wastewater infrastructure a D minus. Would you support a water trust fund to assist states and localities to provide these vital health services to their communities?
Baucus: I’m always on the offensive, fighting for clean water. That’s why overriding the President’s WRDA veto was so important. I’m willing to consider any option that will mean better water services for folks in Big Sky country and across the U.S.
MC: AGC of America staff and the Montana Chapter of AGC (Montana Contractors Association) have expressed concern to you about the 3% withholding law (Section 511 of TIPRA), scheduled to be implemented in 2011. It requires federal, state and some local governments to withhold 3% from the price of every contract. Construction companies, on average, make 2.4% profit from a project. The 3% withholding law translates into the profits going to the withholding and leaving the project short of the resources necessary to complete it. How do you plan to address this problem, and how can AGC work with you to get it repealed?
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| Montana Contractors Association members played a large part in the I-15 South Helena Interchange project. Pictured left to right are Jerry Bowser, Helena Sand & Gravel, Helena, Mont., who served as the prime contractor; Bill Tamietti, Tamietti Construction, Great Falls, Mont., who built the overpass; Senator Max Baucus; Robert Peccia, Robert Peccia & Associates Engineering, Helena, Mont.; and Nick Miller, who managed the project for Helena Sand & Gravel. |
Baucus: I voted against this law because I knew it would be a burden for contractors, and now that it has become law, it truly does make it tougher for folks to get the job done cost effectively.
MC: Do you think there is a chance to repeal or completely reform the estate (death) tax in 2008?
Baucus: I would absolutely support a total repeal of the estate tax. That being said, we have to look at the current Congressional landscape. There are Republicans and Democrats that feel strongly about keeping the estate tax in place. This leaves us short of the votes to repeal the estate tax. We have to come up with a viable solution that will pass Congress. I’ll make sure any efforts to reform the estate tax make sense.
MC: Comprehensive immigration reform is an important issue to AGC members. There has been an increased focus on enforcement with strong mandates and more sanctions for all employers for even simple paperwork violations. How do you propose ensuring a rational approach is taken when dealing with this matter?
Baucus: As you know, immigration involves both our national and economic security. We need legislation that provides adequate border security and does not give amnesty to illegal immigrants. We must beef up enforcement efforts on the nation’s borders.
Montana’s vast border with Canada presents a unique challenge for border security. The threat from potential terrorists and drug runners is even more of a concern along Montana’s Hi-Line precisely because all eyes are on the southern border. We need to work to continue to prevent illegal immigration by protecting our borders. And we must crack down on businesses that hire illegal immigrants using phony Social Security numbers.
AGC’s Monica Cardenas recently interviewed Sen. Max Baucus (D-Mont.) to find out his views on various legislative and regulatory policies important to AGC members.
SEN. MAX BAUCUS (D–MONT.)
Born: December 11, 1941
Hometown: Helena, Mont.
Family: Wife, Wanda Minge; son, Zeno
Committee Appointments: Finance, Chairman; Agriculture, Nutrition & Forestry, Member; Environment & Public Works, Member; Joint Committee on Taxation, Member; Subcommittee on Transportation and Infrastructure, Chairman; Subcommittee on Domestic & Foreign Marketing, Inspection & Plant & Animal Health, Chairman; Subcommittee on Private Sector and Consumer Solutions to Global Warming and Wildlife Protection, Member; Subcommittee on Production, Income Protection and Price Support, Member; Subcommittee on Rural Revitalization, Conservation, Forestry and Credit, Member; Subcommittee on Superfund and Environmental Health, Member
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MONTANA’S PLACE IN THE CONSTRUCTION INDUSTRY
> The construction industry employed 33,200 workers in December 2007 in Montana, 7% of the
state’s nonfarm employment (449,600). Construction employment is up 11% from one year before and the largest percentage gain of any state.
> Construction contributed $2 billion to state GDP of $32 billion in 2006.
> Annual pay in 2006 in construction averaged $35,499, 20% more than the private sector average of $29,386. Nationally, construction pay averaged $44,496, 5% more than the national private sector average of $42,414.
> Small businesses are important in construction. Montana had 5,367 construction establishments (locations) in 2005, 96% of which employed fewer than 20 workers. In addition, Montana had 13,492 construction firms without employees, mainly sole proprietorships, in 2005.
> Montana’s population grew 1.2% from July 2006 to July 2007. The national growth rate was 1%, placing Montana as the 17th fastest of all states. Population growth affects the demand for many types of construction
Source: February 4, 2008 from AGC Chief Economist Ken Simonson and U.S. government sources |
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Advocacy Update 
