AGC warns on California budget battle

|  June 01, 2009 |

Golden State voters said no to tax increases last week, and that has many in the state’s construction industry worried that politicians will raid the gas tax fund to pay for other, non-construction items they deem more necessary. Failure to protect these funds from diversion will cripple an industry that’s already experiencing a 25-percent unemployment rate and make it harder for the state to sell construction bonds says the state Chapter of the Associated General Contractors.

A similar fight may very well erupt this fall when the Washington D.C. reauthorizes SAFETEA-LU, the 6 year federal highway bill. With the president claiming “We’re out of money,” and deficits soaring it’s going to be hard to protect that $300-billion trust fund.

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