TCC testimony addresses Highway Trust Fund solvency

AGC member John McCaskie, Swank Associated Co., New Kensington, Pa., represented the Transportation Construction Coalition April 3 before the Senate Transportation Appropriations Subcommittee at a hearing called to answer questions related to the impact of the Highway Trust Fund's revenue shortage. TCC's testimony pointed out that states are already putting fewer contracts out to bid because the huge increase in construction material costs since 2003 that has reduced the buying power of public works dollars. McCaskie noted that the reduction in contracts has lead to a 2.4% reduction in highway worker employment over the past fourteen months. A reduction of as much as 32% in federal highway funding in FY 2009 would make this problem much worse and could lead to further increases in construction unemployment and the inability of states to address their growing transportation infrastructure needs.

Acting Federal Highway Administrator Jim Ray and Federal Transit Administrator James Simpson joined McCaskie on the panel and presented the Administration's case for reducing Federal highway and transit funding next year. Subcommittee Chairwoman Patty Murray (D-Wash.) and ranking Republican Kit Bond (R-Mont.) both stated that now is not the time to reduce Federal transportation investment. Sen. Murray indicated she would be encouraging increased infrastructure investment as part of future economic stimulus legislation.