Faster Better Safer: Americans for Transportation Mobility

ARRA Spending A Lifeline: Employment Growth Tempered by State Cuts, Long-Term Funding Uncertainty

FOR IMMEDIATE RELEASE                               Contact: Jessica Emond/ 202-778-1094
January 13, 2010                                                     This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Today Janet F. Kavinoky, Executive Director of the Americans for Transportation Mobility Coalition, countered an Associated Press report alleging that stimulus funding did not have an effect on local unemployment rates.

"The AP's analysis of unemployment rates across the nation missed the mark.  It began with an incorrect assumption that baseline funding for highway and transit investment remained unchanged.  This "all other things being equal" approach did not factor in the employment effects of the absence of a long-term surface transportation bill and state transportation budget cuts.  The AP analysis also incorrectly assumed full utilization of existing capacity in the transportation construction industry and apparently considers all construction unemployment rather than isolating transportation construction. 

"ATM Coalition members - from business, labor, and the highway and public transportation sectors - report that early last year uncertainty around the future of federal funding had already resulted in flat transportation investment plans as states hedged their bets on Congressional inaction on reauthorizing the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) and dealt with the insecurity of an insolvent federal Highway Trust Fund. 

"In addition, with the recession, many states didn't just hold back on transportation investment - they cut back.  An analysis by the American Road and Transportation Builders Association (ARTBA) shows that 25 states either put fewer highway and bridge construction projects out for work in 2009 compared to 2008, or invested less money overall in highway and bridge construction projects last year than in 2008. 

"The reality is ARRA funding filled an ever-growing hole in available resources for highway and transit investment.  It's harder to count jobs saved than net new jobs created, but if your job was saved by stimulus funds you know it.  Transportation funds included in the stimulus package last year are being invested faster than expected and are providing a much-needed boost to the U.S. transportation construction industry and suppliers in particular.  The construction sector has been suffering disproportionately during this economic downturn with areas of the country experiencing unemployment over 20 percent.  Without the recovery act funds, the situation would have been far worse. These funds have had a significant impact on transportation construction this year and prevented thousands of layoffs by construction firms and their suppliers - including heavy equipment manufacturers and materials suppliers - due to the significant decline of other construction markets.

"According to the House Transportation and Infrastructure Committee, based on data from October, the 7,500+ highway and transit projects that were underway had already created or sustained more than 210,000 direct, on-project jobs resulting in payroll expenditures exceeding $1.1 billion.  The Committee calculates that $179 million in unemployment checks have been avoided as a result of this direct job creation, and job figures increased to 630,000 when factoring in indirect or induced jobs.

"Going forward, in order to create jobs related to transportation construction, Congress must provide robust investment for highways and public transportation in any jobs package, while simultaneously making every effort to restore certainty to the underlying federal transportation programs. 

"The current federal highway and public transportation programs have been operating on a series of short term extensions since its expiration on September 30, 2009.  The uncertainty surrounding reauthorization is leading to many delayed or cancelled longer-term projects.

The jobs impact of the delay in reauthorization has rippled throughout the economy, and workers at design and engineering firms, construction companies, equipment manufacturers, and materials providers need Congress to restore certainty to federal highway and public transportation funding."

ABOUT US: The Americans for Transportation Mobility Coalition is a nationwide effort by business, labor, transportation organizations and concerned citizens to advocate for increased federal investment in the nation's aging and overburdened transportation system. Visit us at www.fasterbettersafer.org.