WASHINGTON - The Bush administration's fiscal year 2003 budget poses a threat to the highway construction industry and to infrastructure movements across the country, according to a recent report from the Associated General Contractors of America (AGC). The budget calls for a 28 percent drop in highway funding, as well as a $275 million cut in funding for the Army Corps of Engineers.

AGC's Senior Director of Public Affairs, Dennis S. Day said the new budget represents a significant blow to the highway industry. "For the fiscal year 2003, we are $4.5 billion (28 percent) below the amount of money that was authorized for 2002."

The new budget also poses a threat to jobs in the U.S. construction industry, said Stephen E. Sandherr, AGC chief executive officer. "At a time when infrastructure spending is needed most, the budget is a double-edged sword for AGC member firms and the construction industry as a whole. On the positive side, the budget does renew President Bush's call for an economic stimulus package, energy dependence and permanent tax relief."

According to a recent report from the Labor Department, the construction industry lost 54,000 jobs during the last quarter of 2001, said Sandherr. "Cutting infrastructure investment will worsen this situation and risk weakening the recovery that is barely underway," he said. "AGC will work with Congress to reverse the cuts and make a national commitment to ensuring economic growth for the next generation by investing in the infrastructure that provides a foundation for our economy."

Currently, the total number of U.S. construction industry jobs is approximately 6.5 million, said Day. "There are still jobs out there that are going unfilled, but it depends on the trade and sectors involved," he said. "The hotel and highway industries have taken a big hit since 9-11."

For a detailed analysis on how the President's budget affects the construction industry, contact AGC Public Affairs at (703) 837-5310.