|
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."
|