STIMULUS SHOULD FOCUS ON INVESTMENT IN CONSTRUCTION, NOT WASTEFUL SPENDING (02/11/2009)
ABC Feb. 11 urged members of the conference committee for the American Recovery and Reinvestment Act of 2009 (H.R. 1) to add language that would protect the ability of open shop construction firms to bid on the federal construction projects outlined in the package and to remove Davis-Bacon prevailing wage requirements that would make it more difficult for small businesses to bid.
The U.S. Senate Feb. 10 passed a compromise version of the House-approved stimulus package by a vote of 61-37. Before the vote, ABC noted in a letter to Senators that there should be a sharper focus on long-term economic benefits and that the Davis-Bacon Act requirements should be eliminated from the bill but also expressed strong support for the construction and infrastructure spending contained in the bill. The House version of the stimulus package contains more than $160 billion and the Senate version contains $130 million in infrastructure funding for the construction of federal buildings, schools, highways, bridges, workforce development and additional programs.
“This package represents a great opportunity to improve our nation’s infrastructure and to gain back some of the one million jobs the construction industry has lost since January 2007,” said Jerry Gorski, 2009 ABC national chairman and president of Gorski Engineering, Inc., Collegeville, Pa. “In addition, small businesses, which make up the majority of ABC’s 25,000 members, will get help in the form of tax relief provisions and incentives for energy efficiency that will not only help them through this tough economic time, but will also help create more “green” projects.
“Including Davis-Bacon Act provisions in the bill not only increases wasteful spending but will not offer any additional benefits to the economy,” said Gorski. “ABC is excited to have its members getting back to work and we would like to see America’s tax dollars being spent on creating more sustainable jobs instead of artificially inflating wages.”
