Wisconsin Also Robs Peter To Pay Paul

Government funds set asied for specific purposes aren't really set aside for specific purposes, we are learning this week. Governor Jim Doyle and the Wisconsin state legislature balanced that state's budget by dipping into 'segregated" funds to the tune of nearly $240 million, including $65.8 million from the Transportation Fund. No wonder the construction industry is in such dire straits.

ALERT: Construction Industry Robbed By Congress!!

Stealing From the Stimulus

We doubted the $787 billion in stimulus appropriations could all be spent without being raided for other purposes, and the House of Representatives today began the Robin Hood act by proposing a measure to take $2 billion away from the construction industry and give it to the auto industry instead. Because the $1 billion appropriated to fund "cash for clunkers" has already been exhausted, and nobody wants to spend time before today's scheduled adjournment figuring out how to raise revenue to buy more old cars and trucks, the House proposes to take $2 billion from the $11.6 billion appropriated for renewable energy loan guarantees and pump it into the CARS program.

There were feeble mumblings of promises to find $2 billion to restore the Title 17 loan guarantee funds sometime in the future, but I don't recall Robin Hood ever giving anything back to those he stole from.

Highway Trust Fund $7 Billion Band-aid Passes Both Houses

After cruising through the House Wednesday on a vote of 363 to 68, the $7 billion interim appropriation from general Treasury funds to tide the Highway Trust Fund over the Congressional August recess sailed through the Senate late Thursday on a vote of 79 to 17. Proposed Republican amendments to take the cash from stimulus appropriations rather than general revenues were thoroughly trashed on the Senate floor. Nevertheless, the stark controversy about whether to work towards a prompt six year reauthorization when Congress comes back into session in September, or to push through a temporary 18 month reauthorization deferring the touchy discussion of needed new revenue sources until after midterm elections, remains unresolved.

School Construction Funding Of $700 Million Approved In Subcommittee

The Senate Labor - HHS Appropriations Subcommittee yesterday approved the fiscal year 2010 appropriations measure for the Labor and Health and Human Services Departments, recommending total appropriations of $163.1 billion for the two Obama administration agencies. The measure specifically includes $700 million for school construction and renovation, an area of funding cut from the American Recovery and Reinvestment Act at the last minute. It seems likely that this bill will pass both houses of Congress before the current appropriations expire. Advancement of this measure on a voice vote is the only good news out of Washington for the construction industry so far this week.

Employee Free Choice Act Thrown In the Freezer

According to Senator Tom Harkin, talks with Senators Arlen Specter, Mark Pryor, Sherrod Brown, Thomas Carper and Charles Schumer lead Harkin to conclude that card check legislation could not get the required 60 votes in the Senate this year. Whether some watered down compromise preserving a requirement for secret ballot elections regarding union representation could emerge before the end of the session remains to be seen.

Highway Trust Fund Fix Bumped to $7 Billion

At the request of Senate leadership and the Obama administration, the temporary fix to tide the Highway Trust Fund over the five week Congressional recess has bumped from $5 billion up to $7 billion with the concurrence of House Majority Leader Steny Hoyer and Transportation and Infrastructure Chairman James Oberstar. The House passed the bill this evening and the Senate may act tonight or early tomorrow.

Meanwhile across the Potomac in Virginia, the sort of problems to come, should Oberstar's wish for a long term reauthorization measure before the current law expires September 30 not be granted, are being dramatically illustrated. Virginia's Department of Transportation has closed 18 highway rest stops and cancelled 1,400 road construction and repair projects, making $2 billion in budget cuts. Last Monday VDOT also laid off 600 employees. The urgency of the situation for the construction industry could not be more apparent!

Oberstar Caves To $5 Billion Short Term Highway Trust Fund Fix

Look for the House to pass a bill this week including an infusion of $5 billion from the general Treasury into the Highway Trust Fund to keep it solvent while Congress is in recess for five weeks between Friday and Labor Day. Oberstar still wants a six year reauthorization before the end of September, while Senate leadership wants an 18 month temporary extension to work on new funding sources to augment or replace shrinking motor fuel tax revenues. Oberstar initially wanted to press for his six year extension of the fund by limiting temporary cash assistance to $3 billion, but gave in to the $5 billion figure sought by the Obama administration and Congressional leadership in return for avoiding a vote on the 18 month extension proposal at least until after Congress reconvenes in September. Senate Finance Committee Chairman Max Baucus is on board with the $5 billion very temporary fund transfer. So, the suspense about future highway, transit and bridge construction projects remains.