MAINE LABOR UPDATE
August 18, 2007
 
Please Forward to Working Families
 
NATION MUST MEET CRISIS
IN INFRASTRUCTURE

Nation Crumbles - More Than Bridges Is At Stake
Federal Action Demands Political Will and Dollars

 

FROM THE PRESIDENT'S DESK

Ed Gorham
President
Maine AFL-CIO

 

The collapse of the Mississippi River bridge in Minnesota focused a tragic, glaring spotlight on a massive American problem that has, in just a few days, become the subject of hundreds of articles and statements and actions - including the re-inspection of many bridges in Maine and other states.

 

The bridge collapse should come as no surprise. Our nation's infrastructure has been gradually falling apart for decades and many warnings have been issued - warnings that have been largely ignored.

 

Now everyone is seeking someone to blame.

KNOWN DEFICIENT

 

Minnesota's Republican governor, Tim Pawlenty, has insisted that inspections in 2005 and 2006 had found no structural problems with the bridge. But the Minneapolis Star-Tribune reported that the bridge "was rated as 'structurally deficient' two years ago and possibly in need of replacement."

 

            The bridge's suspension system was supposed to receive extra attention with inspections every two years, but the last one had been performed in 2003.

 

The Republican governor had every reason to try and hide the truth because in 2005, he vetoed a bipartisan transportation package that would have "put more than $8 billion into highways, city and county roads, and transit over the next decade."

     At the time, he was applauded by many Republicans for his staunch fiscal "conservatism."

MUST START NOW


     And this takes us to the heart of the matter. Restoring the American infrastructure is vital to the nation's entire economy. Decades of neglect will make it extremely expensive but it must be done. It must be started now.

 

     The question is does the nation have the political will to start the process which will take an estimated trillion and a half dollars when politicians know they gain votes from building something new - not from repairing and maintaining something already in existence.

 

     By now anyone who reads a newspaper knows that in 2005 the American Society of Civil Engineers (ASCE), reported 160,570 bridges, or just over one-quarter of the nation's 590,750 bridge inventory, were rated structurally deficient or functionally obsolete.

 

     Maine has a larger share of this problem than many states. Some 340 of Maine's 3,800 bridges were safe but "structurally deficient" last year and about 1,500 of the state's bridges are more than 50 years old. To avoid being closed or restricted nearly 300 Maine bridges must be repaired or replaced in the next ten years.

MORE THAN BRIDGES


     Bridges are just one part of the picture - the AFL-CIO repeatedly has urged the nation’s political leaders to address our aging infrastructure in convention resolutions and, most recently after the devastation of Hurricane Katrina in New Orleans.

 

At its summer meeting in Chicago August 8, members of the Executive Council renewed their call for Congress and the president to rebuild America. The Council’s statement said: 

 

Our government must make the significant investments needed to upgrade and maintain the nation’s infrastructure. We need to find the resources to make this happen and ensure that we take advantage of this opportunity to create good jobs for America’s workers, both in construction and production of the materials needed. This will require courage, leadership and vision, but we cannot afford not to act.  

 

ASCE’s “2005 Report Card for America’s Infrastructure” gave the nation a “D.” The group estimated that a $1.6 trillion investment over the next five years is needed to fix these problems and rebuild America. The report is both a damning indictment of neglect and a recipe for disaster: 


LOOKING AT FACTS


Consider just a few of these facts from the ASCE:

 

27.1 percent of the nation’s 590,750 bridges were rated structurally deficient or functionally obsolete. It will cost $9 billion a year for 20 years to eliminate all bridge deficiencies.

 

Poor road conditions cost U.S. motorists $54 billion a year in repairs and operating costs, and congestion on the nation’s roadways costs drivers $63 billion a year. However, the $59 billion spent annually is well below the $94 billion needed each year to improve transportation infrastructure.
 

Limited rail capacity has created significant chokepoints and delays. However, freight rail is expected to increase at least 50 percent by 2020. In addition, intercity passenger and commuter rail service is recognized as a good investment. Each year, $12 billion to $13 billion is needed to maintain existing rail infrastructure and expand for future growth.
 

WATER AND WASTE
Federal funding for drinking water and wastewater systems remains at $850 million annually, less than 10 percent of the total national requirement. Aging systems discharge billions of gallons of untreated sewage into U.S. surface waters each year. The Environmental Protection Agency estimates that $390 billion will be needed over the next 20 years to adequately address these problems.

 

Between 1998 and 2005, the number of unsafe dams rose by 33 percent to more than 3,500. It will take $10.1 billion over the next 12 years to address all critical nonfederal dams. By 2005, there were more than 11,000 high-hazard-potential dams—dams whose failure would cause loss of human life.

The detailed extent of the problem and possible actions that could be taken are on the web page of the American Society of Civil Engineers at:
http://www.asce.org/reportcard/2005/actionplan07.cfm


The problem is obvious - and has been obvious for decades. What is less obvious is the political nature of the problem and its barriers to a long-term solution.

TAXES DWINDLE
The 18.4 cents-a-gallon federal fuel tax, which raises most of the money the federal government uses to pay for the nation's surface transportation system, remains stagnant, failing even to keep pace with inflation. By 2015, the tax will have lost 55 percent of its buying power if it remains unchanged, according to a recent report by the American Association of State Highway and Transportation Officials.

 

The federal highway trust fund, which the fuel tax funds, is expected to be broke by 2009. Current projections indicate a deficit of $5.7 billion in 2010, which would result in a 42 percent reduction in federal transportation money, the association predicts.

 

"We'll fall off the cliff in 2009," said Sen. Kit Bond, R-Mo., who wrote much of the last transportation bill.

 

BILLIONS MISSPENT

In the face of this combined and growing physical, political, financial crisis we have a government that has already spent a half trillion dollars on the war in Iraq, 12,000 American corporations avoiding billions of dollars in taxes by all claiming to be located in a single 5-story building on Grand Cayman Island in the Caribbean, an Administration which has given billions of dollars in tax cuts to the super-rich, an Administration even now talking about lowering corporate taxes, and an Administration that has gone from a multi-billion dollar surplus to a multi-billion dollar national debt,

 

"After World War II, the nation's tax bill was roughly split between corporations and individuals. But after years of changes in the federal tax code and international economy, the corporate share of taxes has declined to a fourth the amount individuals pay, according to the US Office of Management and Budget." --Boston Globe series on Corporate Welfare. While many huge corporations pay no taxes at all, it is estimated that annual subsidies and tax benefits to corporations exceed $150 billion.

One report of the Government Accounting Office showed that in a four year boom period 61 percent of US corporations paid no federal income taxes at all.

The nation has the resources to upgrade the infrastructure and it would not be money wasted. Economists estimate that every $100 spent on infrastructure provides an overall boost of $104 to the economy. Every billion dollars spent on infrastructure would create 48,000 new jobs directly in improvements and in producing the materials for improvements.

 

The AFL-CIO Executive Council this month summed it up well by saying"The future of our economy and our quality of life depend on the health of the nation’s infrastructure. Investing in it will create good jobs while improving the living standards of working families and their communities."