Federal construction-related funding in fiscal 2005 appropriations bills will be about $1.3 billion (2%) higher than in fiscal 2004, according to a compilation by AGC legislative director Dave Schwietert (schwietertd@agc.org). The total will not be final until President Bush signs an omnibus bill that has passed both houses but awaits removal by the House of a provision the Senate objected to. Final Congressional action is expected next week. Among the more than 25 items spread through numerous agencies and programs, the largest dollar increases are for federal-aid highways, roughly $800 million (2%); military family housing construction, roughly $550 million (51%); and mass transit grants, roughly $380 milion (5%). In addition, Congress passed one-time construction-related spending of $14.5 billion for hurricane disaster relief and $1.9 billion of emergency relief road funding (including funds appropriated at the end of fiscal 2004 but available in 2005). The largest dollar cuts were for wastewater treatment grants, -$260 million (-19%); community development grants, -$230 million (-5%); and Bureau of Prisons facilities, -$208 million (-53%).
State-funded construction funding may also fare well in 2005. The Rockefeller Institute of Government (www.rockinst.org) reported on November 10 that state sales, personal income and corporate income taxes grew more than 8% from July-September 2003 to the same quarter of 2004. That marked the fourth straight quarter of year-over-year revenue gains above 7%. As a result, legislatures meeting in January should have more revenue than in the past three years to restore or increase construction and other spending.