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)

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• Climate Change: 56% unwilling to pay more

for energy

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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

General Election: Independents Hold Keys

• 2006: 57% DEM39% GOP

• 2008: 52% DEM44% GOP

• 2010: 38% DEM56% GOP

• No permanent majorities and at this point little focus on the middle

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

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

Comparing the Budgets

Cumulative Deficits

(in Billions)

FY 2012-2016 FY 2012-2021

Obama Budget -$4,190 -$9,500

Ryan Budget -$3,101 -$5,450

Fiscal Commission -$2,903 -$5,320

Ryan v. Obama -$1,089 -$4,050

Ryan v. Commission

$198 $130

FY 2012-2020 Totals

Budgets Overall Totals In billionsReceipts Spending

Obama $32,392 $40,109Ryan $30,516 $35,219Commission $34,295 $38,441

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

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

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%)

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

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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

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

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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.

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

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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

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

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

NLRB/DOL

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

elections

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

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

Grassroots Activists

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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

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Questions, Comments, Advice?