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AGC Update

AGC Update. July 2011. Review of Election Results. $3.5 billion spent est. New Senate numbers 53 to 47 (59 to 41) New House numbers 187 to 239 (255 to 178) Big Issues Included: Stimulus: 38% helped economy Health Care: 58% favored repeal

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AGC Update

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  1. AGC Update July 2011

  2. Review of Election Results • $3.5 billion spent est. • New Senate numbers 53 to 47 (59 to 41) • New House numbers 187 to 239 (255 to 178) • Big Issues Included: • Stimulus: 38% helped economy • Health Care: 58% favored repeal • Climate Change: 56% unwilling to pay more for energy

  3. Preview of Election 2012 • Senate Vulnerables 12 (10D/2R) • House Vulnerables 48 (21D/27R) • Presidential • Redistricting • Issues on the voters minds today • Economy, Budget Deficit (inefficiency of government), Wars/geopolitical concerns, Ethical Integrity, Bipartisanship

  4. General Election: Independents Hold Keys • 2006: 57% DEM 39% GOP • 2008: 52% DEM 44% GOP • 2010: 38% DEM 56% GOP • No permanent majorities and at this point little focus on the middle

  5. Primaries: TEA party and Progressives • Tea Party: No formal platform or leadership • Balance the budget/cut taxes/reduce debt • Repeal and replace health care • Progressive priorities • Budget cuts = attacks on women, minorities, poor, environment and elderly • Big oil companies, big banks and wealthy Americans need to be punished or taxed more • Medicare/social security • Will new members get enough OJT

  6. Major Decision Points • 2011 Spending bill HR 1 • 2012 Federal Budget passed the House • Debt limit needs to be raised (Aug. 2) • GOP want cuts to = debt limit increase • Historically majority party passes debt limit • Global deal may be best opportunity for new infrastructure investment and tax policy

  7. Comparing the Budgets

  8. FY 2012-2020 Totals

  9. Construction Matters to the Economy • Economic prosperity and quality of life are driven by the construction industry • Hospitals, Universities, Manufacturing Housing, Data Centers, Schools, Public Buildings, Roads, Sewers, etc. • Construction improves international competitiveness • Construction creates jobs

  10. Cost of Inaction/Benefits of Action • Impact on labor market • 20% of jobless, 5% of total employment • Public and private sector will delay needed improvements • Strong belief that benefits far out weigh costs • Both parties should have legitimate reasons to help construction

  11. FY 2011 Spending Bill • FY 2011 Spending Deal • $40 B in total cuts for remainder of FY 2011 • Compared to 2010 Enacted • Federal Construction Accounts Slashed by $22B • GSA – FY 11 program wiped out (-91%) • Corps of Engineers – FY 11 Cut by $600M (-11%) • Military Construction – FY 11 Cut by $6.2B over FY10 • Cut is $1.3B under President’s FY11 Request (-21%) • VA – FY 11 Cut additional $250M (-13%)

  12. Water Infrastructure • Goal: Support reauthorization and increase investment in water resources development and clean water infrastructure • SRF reauthorization • Water trust fund • Private Activity Bonds • Appropriations

  13. Building Construction • GSA funding slashed • Operations & Maintenance down $271m despite fed avg spending $6.91 per sq ft compared to industry avg of $7.60. • Repairs and alterations cut from $466m to $35m • Rents cut from $5.2b to $4.7 despite contracts for $5.2

  14. 3% WITHHOLDING • Effective date 1/1/2012 • IRS enforcement date 1/1/2013 • AGC survey to lead to press announcement • AGC Tax & Fiscal Affairs Ctte: no compromise • AGC grass roots push • Only tax vehicle likely to be budget deal as part of debt limit vote

  15. Regulatory Concerns • Estimated annual cost of regulatory compliance is $1.187 trillion • Agencies spend $54.3 billion annually to administer and police regulations • 68,598 pages printed in the fed register in 2009 • 4,043 regulations now in the pipeline, 180 are “economically significant” rules • In 2009 agencies issued 3,503 final rules. The President signed only 125 bills into law in 2009.

  16. Improving Regulation and Regulatory Review • In January… EO 13563 “how best to promote retrospective analysis of rules that may be outmoded, ineffective, insufficient, or excessively burdensome.”  • Stormwater/ELG, 404 Permits, Lead Paint, Fly Ash, Hearing Conservation, MSDs • Election 2012

  17. EPA Stormwater Permit • Stormwater runoff from construction sites major EPA enforcement priority • EPA revising Gen’l Construction Permit (GCP) • AGC had convinced EPA not to impose numeric limits on runoff • Defended EPA in suit vs. greens; lost on appeal • EPA CGP covers 4 states, DC and PR but serves as template

  18. EPA Stormwater Permit • Under current permit, operator chooses BMP’s • Proposed permit prescribes BMP’s and sets numeric limits (NTU) • --30 day delay before working • --file permit electronically • --must record discharges in logbook and report violations • --$37,500 per day fine

  19. EPA Stormwater Permit • At AGC’s request, EPA extended comment period to 7/12 • AGC held webinar on 6/1 • Developing template comment letter for chapters • Citizen suits could imperil construction projects • AGC considering legal/legislative remedies

  20. NLRB/DOL • Boeing case • “Micro” unions • “quickie” elections • “persuader” disclosure • --file with DOL • --all activities related to influencing elections

  21. GOVERNMENT PLA’S • Continuing successful FOIA strategy • House has had 2 votes on issue—lost both • Attacking GSA 10% tech factors bonus • --legal memo • --awaiting GSA response

  22. FEDERAL CONTRACTORS DISCLOSURE • Draft Administration memo would require disclosure of political contributions • Includes “independent expenditures” • Covers “officers and directors” and includes “affiliates and subsidiaries.” • Democratic blowback (Hoyer, Black Caucus) • Appropriations rider

  23. Grassroots Activists

  24. Grassroots Activities • Communicate, educate, counter incorrect information • Contact elected officials (www.agc.org/lac) • Contact local media • Invite to speak at chapter meetings & invite to project sites

  25. Questions, Comments, Advice?

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