Hearing Of The Subcommittee On Economic Development, Public Buildings, And Emergency Management Of The House Committee On Transportation And Infrastructure - "Tracking Hearing #3: Following The Dollars To The Jobs"

Statement

The Committee on Transportation and Infrastructure has worked to ensure that
infrastructure investment programs play a key role in our nation's economic recovery and lay
out the case for maintaining public buildings playing an important role in creating and retaining
jobs. Today's hearing is a step in that direction by identifying the role the American Recovery
and Reinvestment Act of 2009 (P.L. 111-5) has played in today's economy by providing jobs
and shoring up the nation's infrastructure.
Of the $5.55 billion in Recovery Act funds provided to the General Services
Administration, the agency has awarded contracts worth $1.4 billion for 288 projects, as of
October 16, 2009. This amount represents 25 percent of GSA's total apportionment. While
this rate of obligation makes it likely that GSA will meet the requirement that it obligate not less
than $5 billion of the funds by September 30, 2010, and the remainder not later than
September 30, 2011, I would like to hear today about how GSA plans to increase its rate of
obligation and beat these deadlines by months.
I am also pleased to report that the Economic Development Administration, over a
month ago, reached a milestone by announcing its final Recovery Act project. In total, EDA
announced 68 grants in 37 states totaling $147 million. EDA's efforts deserve applause and
send a clear message to other federal agencies implementing Recovery Act projects: you too
can quickly deliver infrastructure projects, put shovels into the ground, and in doing so improve
our nation's infrastructure and lift our economy out of recession.
We will also hear today from the Smithsonian Institution. Of the $25 million provided,
Smithsonian has signed contracts worth $22 million for 13 projects. This represents 87
percent of the Smithsonian's total apportionment.
The Associated General Contractors of America has testified before this Committee that
$1 billion in non-residential construction creates or sustains 28,500 jobs. Given that the
Department of Labor indicated last month that the unemployment rate is 9.8 percent, the funds
provided to GSA, EDA, and the Smithsonian are absolutely necessary to create jobs, maintain
and grow this economy.
GSA projects carry the added bonus of being focused on energy efficiency and
conservation, which provide utility cost savings over the long term. The federal government is
the largest consumer of energy in the United States, so by making gederal buildings more
energy efficient, jobs are created and the nation's energy bill is reduced.
The Recovery Act also enables GSA to bolster its management of its capital asset
portfolio. In previous hearings, I have expressed my concern with GSA leaving federal
buildings for leased office space because of the deteriorating condition of some buildings.
When the federal government leases space, it has the dual impact of greater long-term costs
in housing federal agencies and reducing contributions to the Federal Building Fund, which is
used to fund construction and repair and alteration projects within the GSA inventory.
I look forward to hearing the testimony of today's witnesses and ascertaining whether
the construction funds have had the intended effect of creating good, family-wage jobs as
quickly as possible, while also improving our deteriorating public buildings infrastructure and
laying the foundation for our future economic growth.

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