President’s 2009 Budget Would Cut Infrastructure Funding

President Bush's eighth and final spending plan, a $3.1 trillion proposal, would cut federally funded infrastructure at several agencies. The budget proposes $102 billion for more than 60 infrastructure categories, a 2.9% reduction from FY 2008.  Of note is the almost $2 billion cut in the federal-aid highway program as well as significant cuts in EPA’s Clean Water State Revolving Fund, the Corps of Engineers' civil works program, and the US Geological Survey’s Minerals Information Team.

Among significant changes in funding levels:

U.S. Department of Transportation (DOT) proposed FY 2009 budget would fund construction, maintenance, and operation activities for the nation's roadways, railways, and air transportation.  The proposed $68.2 billion total represents a $2.13 billion decrease from the FY 2008 appropriations bill enacted in December 2007.  Moreover, proposed budget rescission measures totaling $3.89 billion would further reduce the budgetary resources available to DOT in FY 2009 to $64.31 billion.

The federal-aid highway portion of the DOT budget proposal is $39.39 billion (obligation limit).  This amount is $1.81 billion (4.4%) less than the FY 2008 amount of $41.21.  The FY 2008 figure included a $1 billion addition dedicated for bridge repairs as a result of the I-35W bridge collapse.  In addition the FY 2009 proposed budget is less than the SAFETEA-LU authorized obligation limit of $41.2 billion.  

In addition the President’s budget calls for transferring money from the Mass Transit account to cover the FY 2009 $3.2 billion funding shortfall in the Highway Trust Fund account.  The highway account will be $3.2 billion in the red by the beginning of fiscal 2009, according to Treasury Department projections; the mass transit fund is $4.4 billion in the black.  The FY 2009 proposal includes a RABA reduction of $1 billion.  Rail service, buses and other mass transit systems are funded at $8.4 billion this year, compared to $7.8 billion in fiscal 2008.  In addition the Federal Aviation Administration’s Aviation Improvement Program was reduced by 22% from FY 2008’s $3.51 billion to $2.75 for FY 2009.

EPA's Clean Water State Revolving Fund, a low-interest wastewater loan program that helps states construct water treatment facilities, would receive $555 million, a $134 million cut from FY 2008.  However the Drinking Water State Revolving Fund would receive a slight increase, from $829 million in FY 2008 to $842 million for FY 2009.

The President proposed $1.40 billion for the Corps of Engineers’ civil works projects, a 39% cut from FY 2008.

Within the Department of Interior, the US Geological Survey’s Mineral Resources Program, which funds the Mineral Information Team, would see a cut of $25.5 million and a loss of 210 personnel.  The group is responsible for providing PCA with the portland cement shipment information.  This administration has consistently tried to reduce or eliminate this organization, but PCA and its allies have successfully restored the funding.

The plus side, the budget proposes $5.8 billion for  Louisiana levee reconstruction as part of the ongoing program to protect metro New Orleans against a 100-year storm.

Visit www.whitehouse.gov for more details

Contact John Sullivan or David Hubbard

Green Transportation Measure Clears Subcommittee

On Thursday, the House Committee on Science and Technology Subcommittee on Technology and Innovation reported out to the full committee H.R. 5161, the Green Transportation Infrastructure Research and Technology Transfer Act.

The bill provides grants to university transportation centers to conduct research and development of innovative green transportation infrastructure technologies. The research aims to provide cost-effective ways of mitigating environmental impacts throughout the lifecycle of transportation infrastructure and to minimize water pollution through improving on wastewater management systems.

The funding will also help to foster technology transfers regarding green transportation infrastructure between the multiple research centers and to assess the impacts of implementing such technologies.

The House Committee on Science and Technology has scheduled a full committee markup for the end of the month.

Contact Kevin Walgenbach

Congress Sends Stimulus Package to President

On Thursday, Congress passed the much anticipated economic stimulus package, H.R. 5140, the Recovery Rebates and Economic Stimulus for the American People Act of 2008.

The U.S. Senate voted (81-16) to expand the legislation by including 250,000 disabled veterans and their widows, and nearly 20 million seniors receiving social security in those eligible to receive a rebate check. Furthermore, the Senate approved an amendment that specifies that illegal immigrant workers cannot receive rebate checks.

Following the bill’s passage in the Senate, the U.S. House of Representatives quickly moved to pass the amended bill (380-34).

The bill, totaling $168 billion, also issues rebate checks to taxpaying middle-class Americans ranging from $300 to $600 for individuals and up to $1,200 for a married couple, plus $300 per child with no limit on the number of children. The rebates start at the $3,000 income level and are phased-out for those with incomes above $75,000 for a single taxpayer and $150,000 for joint-filing married couples.

The bill would allow for a 50% bonus depreciation for businesses that buy major equipment. It would also double the amount of equipment costs a small business can expense in the first year up to $250,000. The Fannie Mae and Freddie Mac conforming loan limits would also be increased to as much as $729,750.

President Bush has stated he will sign the bill next week.

Contact Robert Sullivan

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