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July 23, 2010

Suppliers of Pavements & Aggregates Urge<br> White House to Support Raising Fuel Tax 

Five national organizations representing pavement and aggregate suppliers wrote President Barack Obama on Wednesday urging his administration to work promptly to enact a multiyear surface transportation reauthorization bill that contains increased funding for highways by raising the federal tax on gasoline and diesel fuel, which last went up in 1993.

"Beyond the immediate economic stimulus of a transportation authorization bill, investment in our transportation system will provide long-term benefits such as enhanced mobility, improved economic growth, and increased global competitiveness," states the letter signed by the presidents of the American Concrete Pavement Association; National Asphalt Pavement Association; National Ready Mixed Concrete Association; National Stone, Sand, & Gravel Association; and Portland Cement Association.

The coalition notes that five short-term extensions of the 2005 surface transportation authorization law known as "SAFETEA-LU" (the latest of which expires Dec. 31) are "having a devastating impact on the highway material construction industry. The current lack of funding certainty in the federal highway market is preventing states and local governments from advancing new highway projects. ... This drawn out, piecemeal approach is contributing to the transportation construction industry's worst construction cycle since World War II."

Manufacturers of aggregates, asphalt, and concrete have experienced double-digit production declines in 2008 and 2009, and there is little hope that there will be any improvement this year, the letter notes.

"Dedication and action by your administration on a multiyear surface transportation bill will stimulate the nation's economy while also adding well-paying, long-term jobs in construction and related industries," the associations wrote to Obama. "Our nation is in desperate need of upgrading its highways, roads, and bridges now and for future generations. The best way to accomplish this is through a well-funded, multiyear surface transportation bill with increased funding for highways. This legislation is absolutely vital to the creation of good American jobs, economic stability, market predictability, and sustaining the gains realized from the American Recovery & Reinvestment Act."

The letter concludes by asking the president to support an increase in the fuel taxes that generate the vast majority of revenue for the Highway Trust Fund. The Obama administration has said numerous times, however, that it will not support a fuel-tax increase during an economic recession.

"We urge you to work with congressional leaders to address this formidable challenge and champion an increase in the fuel tax to deliver the transportation authorization that this nation deserves," the organizations wrote. "Your leadership on this issue is desperately needed if we are to overcome this huge and complex challenge to keep moving our nation forward."

Public Opinion Surveys Show Americans' Contrasting Feelings Toward More Spending

Two polls released this week show that while Americans support investing in infrastructure, they also prefer reducing the budget deficit versus increased government spending.

The first survey was released Tuesday by the Association of Equipment Manufacturers. Of those voters polled, 66% agreed that "given current economic conditions, it's a good time to build and repair America’s roads and bridges." (AEM's survey results are based on a telephone survey of 1,000 registered voters nationwide conducted by Clarus Research Group, a nonpartisan survey research firm based in Washington.)

"The findings in our national survey demonstrate strong majorities of voters believe putting money into infrastructure would make America a more desirable place to live and work, and would create a significant number of new jobs," said AEM President Dennis Slater. 

The second survey was published Tuesday by the National Journal and cosponsored by the Pew Research Center and the Society for Human Resource Management. It found a narrow majority of those polled believe it is more important for government to reduce the budget deficit than to increase spending targeted to help the economy recover. Budget reduction was favored by 51% of respondents while spending increases were supported by 40%. The nation's budget deficit for the current fiscal year stood at $1 trillion at the end of June.

"Budget hawks clearly have the upper hand in the battle for voters' hearts and minds," CongressDaily, which is published by the National Journal, concluded in a follow-up article on the poll published Thursday. "The public clearly thinks that deficit reduction is more important than spending to help the economy recover."


Questions regarding this article may be directed to editor@aashtojournal.org.

 
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