Government Affairs « American Council of Engineering Companies of Pennsylvania (ACEC/PA)

Government Affairs

ACEC/PA provides current and archived information that is relevant to government affairs issues.

ACEC Issues 2009 PAC Report

ACEC PAC 2009 Annual Report

Thank you to our 2009 donors!

Adverse Interest Act

Federal Highway Extension Update

As you may have already heard, last week Congress failed to pass an extension of highway and transit programs under SAFETEA-LU. The last extension expired on Sunday, February 28th. Until Congress passes another extension, no funding can be expended from the Highway Trust Fund. This has implications both for state project payments and for federal DOT employees whose salaries are paid out of the Trust Fund. It does not impact the collection of gas taxes and other transportation revenues, which proceed under separate authority.

Here is a link from the U.S. DOT webpage that explains the implications of the shut down: http://www.dot.gov/affairs/2010/dot3610.htm

At FHWA, reimbursement to states for ongoing highway projects will stop, as will approvals of new projects funded out of the Trust Fund. The only projects to be shut down immediately are projects carried out directly by USDOT on federal lands (a list of which was provided in the DOT press release), although if reimbursements are suspended long enough, cash flow problems will shut down projects in many states.

Once FHWA employees are furloughed tomorrow, they will no longer be present at work to approve projects funded from the general fund, either, including new projects under the Recovery Act (ARRA). FHWA is required by law to redistribute unobligated ARRA highway formula funding on Tuesday, March 2, but it is unclear if this will take place if all FHWA employees are out on furlough.

The problem arose when the House and Senate passed different versions of a long-term extension as part of a larger jobs bill. The House jobs bill extends the program through September 30th and treats certain programs differently from the recently passed Senate jobs bill, whose extension runs through December 31^st. An effort to pass a 30-day extension and give time to resolve the differences between the two bills was blocked by retiring Senator Jim Bunning (R-KY), who objected to the deficit spending in the extension. Efforts to persuade Senator Bunning have been unsuccessful.

There are two options for Congress to resolve this situation: either the Senate can pass the 30-day extension, which is unlikely to happen under Senate procedures until Thursday, or the House can pass the Senate jobs bill with the extension through December 31. This could happen as early as tomorrow or Wednesday, but there are Democratic objections to other provisions in the Senate jobs bill, and it is not clear that they have the votes to pass the Senate bill without changes.

ACEC will continue to pressure Congress to resolve this crisis as quickly as possible. States are already slowing projects down and not issuing new projects while the shutdown persists and uncertainty lingers. We will pass along additional information as the situation develops. Also, look for information in this week’s Last Word.

Steve Hall

Vice President, Government Affairs

American Council of Engineering Companies

Governor Proposes Elimination of Certain Sales Tax Exemptions

This includes professional services and a reduced rate of 6% to 4%. Details to follow.

74 Sales Tax Exemptions to be Repealed – Governor’s 2010-11 Budget