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September 8, 2011
Tonight, President Obama will introduce his new job plan to the nation. Reports indicate this will include significant investment in transportation infrastructure, meaning that many Americans will be put to work improving the nation’s roads, bridges, and transit systems. The transportation system, already stressed from deferred maintenance and reduced budgets, was recently rocked by storms and other natural disasters, requiring significant repair and rebuilding of infrastructure in hard-hit states. The President’s plan is projected to quickly create tens of thousands of jobs, while reducing future costs to replace infrastructure that is allowed to fall into disrepair. But even while Congress considers the President’s jobs plan, many more existing infrastructure jobs are in jeopardy as the current transportation bill nears expiration.
The current extension of the federal surface transportation bill is set to expire on September 30. Without an additional extension, both the collection of the federal gas tax and construction projects that rely on these funds will immediately cease. According to the White House , $100 million in revenue will be lost each day; 4,000 workers will be out of a job immediately, with as many as one million jobs at risk if a compromise cannot be reached. A new, long-term transportation bill is sorely needed; indefinite short-term extensions are not a sustainable policy solution. However, current proposals to replace the transportation bill will not be ready for passage in less than a month’s time. Another extension, the bill’s eighth, is therefore inevitable. Failing to meet the extension deadline provides no upside.
President Obama has called for the extension twice in the past week. Rep. John Mica (R-FL), chair of the House transportation committee, has stated that he is willing to support an extension, provided that it is the final one before a new bill. Even with key bipartisan support, concern remains that the seemingly routine, yet urgent, extension could morph into the latest Congressional show-down over revenue and spending. Such a conflict this summer resulted in a two-week delay for an extension of Federal Aviation Administration funding. That delay resulted in $350 million in lost federal revenue , 4,000 FAA employees furloughed, and a temporary shutdown of construction projects that employ 74,000 workers . The new FAA extension only lasts until September 16, another potential crisis fast-approaching.
The economy, jobs, revenues and deficits are at the forefront of Congressional concerns. Acting on these critical extensions of two transportation bills is key to addressing these concerns. A failure to do so simply exacerbates our economic doldrums and prevents the necessary repair and rebuilding of transportation infrastructure in states ravaged by natural disasters. Responding to the needs these Americans will also help the economy – nationally and locally.