Jobs lost in transportation

Economic stimulus can’t prevent widespread job loss in down economy

Peter Marcus, DDN Staff Writer

Monday, November 16, 2009

Despite its best effort, the $787 billion economic stimulus package signed by President Obama in Denver last February simply could not prevent widespread layoffs in the transportation industry.

A report released Friday by the Associated General Contractors of America states that 44 percent of contractors anticipate having to layoff additional permanent employees due to overall economic conditions.

Tony Milo, executive director of the Colorado Contractors Association, told the Denver Daily News that his membership is reporting significant job loss in Colorado, and fears are now focusing on the private sector.

“Our biggest challenge right now is the private sector construction, which is still very, very dismal,” he said. “And without that, we won’t have a robust industry.”

As winter approaches, seasonal job layoffs will only rise.

Public sector construction only makes up about 30 percent of the industry, and some contractors have reduced their staff by as much as half, equating to thousands of jobs lost in Colorado.

While 73 percent of respondents to a Washington, D.C.-based Transportation Construction Coalition survey reported receiving stimulus-funded contract work this year, another 63 percent reported having to lay off permanent employees during 2009 due to adverse business conditions.

Calling for legislation

Industry advocates are calling for Congress to pass legislation that beefs up transportation funding.

“The key to sustainable new job creation in the transportation construction industry is Congressional passage soon of the overdue, long-term federal highway and transit program funding bill with new resources for the tapped out Highway Trust Fund,” said Mike Acott, president of the National Asphalt Pavement Association.

Meanwhile, Colorado will receive over $500 million for transportation projects statewide thanks to the stimulus package.

There are 51 stimulus projects under construction across Colorado, according to the Department of Transportation. About 56 projects are under contract.

As of last month, the stimulus dollars created or sustained 6,018 jobs in the construction industry, equating to about $8.6 million in payroll expenses, according to CDOT.

The White House announced last week that more than 10,000 transportation projects have been jumpstarted thanks to stimulus dollars.

Here in Colorado, Gov. Bill Ritter has proposed a 6 percent increase to the transportation budget over last year, despite the fact that the state is in the process of closing a two-year budget deficit of over $2 billion. The governor says the transportation budget increase is possible because of the Funding Advancement for Surface Transportation and Economic Recovery Act (FASTER,) signed by the governor in March.

The bill is expected to generate about $252 million annually by raising vehicle registration fees. In its first year, the bill is generating $221.7 million, the governor’s office said.

Senate President Brandon Shaffer, D-Longmont, is looking forward to the increased transportation budget creating jobs while fixing the state’s 128 structurally deficient bridges and crumbling roadways.

“We’re working for average families by creating jobs, keeping our roads and bridges safe, and providing a dedicated stream of funding for transportation, which we haven’t been able to do in recent years,” he said recently in a statement.

Milo is looking forward to the impact FASTER may have on his industry, but he points out that the state won’t start advertising FASTER projects until the spring at the earliest.

House Speaker Terrance Carroll remains optimistic.

“FASTER means shovels in the ground and an economic shot in the arm,” he said. “We’re going to bolster our economy, create jobs and responsibly balance our budget.”

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