AGC'S Statement on Governor Schwarzenegger's Latest Budget Proposal
By: Pam Gray
2010-01-08
AGC’S STATEMENT ON GOVERNOR SCHWARZENEGGER’S LATEST BUDGET PROPOSAL
The Latest State Budget Proposal Will Put More Construction Jobs at Risk
“The Governor’s proposal to eliminate the sales tax on gas wipes out the funding from Proposition 42 that was passed by a majority of California voters and earmarked for transportation projects. Partial replacement of these revenues by a new gas tax will eliminate rather than create construction jobs,” said Tom Holsman, chief executive officer of Associated General Contractors.
“While we understand the precarious times facing the state, this latest budget gimmick relating to transportation funding is short sighted and does nothing to help balance the budget,” Holsman added. “The Governor’s proposal ignores that voters approved Proposition 42 as a secure funding source to repair some of the worst roads in the nation. These gimmicks only serve to threaten the stability of highway and mass transit funding in the state.”
Holsman noted the Governor’s proposal comes at a time when contractors and workers are already suffering from the economic down turn and the proposal does nothing to address the crisis affecting construction in California. Construction unemployment in California is already amongst the highest in the nation according to the Bureau of Labor Statistics latest figures.
The Associated General Contractors is the largest construction association who led the fight to approve Proposition 42 to provide additional resources for California’s aging transportation system.