AZAGC Chairman’s Message
The other “C” of Arizona’s Economy
In recognition of our rich Arizona heritage, many refer to the five vital components of our economy as the five “Cs”; Climate, Citrus, Copper, Cattle and Cotton. One vital “C” missing from this old time Arizona mantra is the other “C”; Construction. In large part, Arizona is the state it is today because of the strong construction industry that catapulted Phoenix to become the 6th largest city in the country, made the University of Arizona a world class institution, allowed Luke Air Force Base to become one of the finest fighter training facilities in the country, making our borders safer, and allowingthousands of planes to come and go from our many airports. Simply put, every person in Arizona, and the entire country for that matter, is touched by construction. However, many take its benefit for granted.
It is not until we lose our water supply or get caught up in a major traffic snarl causing hours of delay that we realize how important construction is in our everyday lives. Last week President Obama spoke to the nation about our struggling economy. In his speech he made reference to our crumbling infrastructure and the tremendous job loss that has occurred in our industry. Whether or not you agree with his policies, his message about investing in infrastructure is salient and timely.
On Wednesday, Moody’s downgraded ADOT’s bond rating. It did so because of the many legislative fund sweeps from the Highway User Revenue Fund (HURF). In total, over the last eleven years, almost $1.5 billion has been taken from transportation coffers. These raids are on top of the lost revenue due to our struggling economy. The Maricopa Association of Governments (MAG) has cut its program from $14.5 billion to $8.7 billion. Many cities and counties are also cutting their capital programs.
In 1991 the gas tax was increased to 18 cents. It has never been adjusted for inflation. If so, today’s tax would need to be 30 cents just to be able to buy what it did in 1991. Couple this with electric vehicles and the federal government’s mandate that cars become more efficient and motorists today pay about 80 cents per 100 miles of travel in Arizona compared to $1.40 in 1991. This equates to a 43% loss in funding dedicated to our crumbling infrastructure.
This year, AGC members were asked what was most important to them. Overwhelmingly, you said adequate funding for infrastructure is missing. You asked the association to do something about it, so we are. At our strategic planning brainstorming session this year, the members directed us to work closely with other organizations to create a strategy that will increase public awareness and inform policymakers of the importance of infrastructure investment. In partnership with ACEC, ABA, AMCA, Friends of Transit, the Arizona Transit Association, ARPA and TUCA we created a partnership called,“We Build Arizona”. Our goal is simple: Protect and Grow State and Local Infrastructure Funding. AGC has already committed to make a significant investment to make We Build Arizona successful. However, you need to be a part of it, too.
Policymakers need to know that We Build Arizona is a strong grassroots organization that is intent upon protecting and expanding infrastructure revenue. I encourage you, whether you’re a city engineer, a staff member of ADOT, an architect or an everyday citizen that enjoys the fruits of this industry’s product to join our coalition. If you’re able, make a contribution no matter how small or large. You can do so by going to www.webuildaz.org. If you can’t make a contribution, please forward this promotional video to anyone you think would be interested.
Who knows! We might be able to change the slogan to the Six Cs of Arizona’s economy. We need each one of you. Log on today.
Gary Haydon, Chairman
Arizona Chapter Associated General Contractors
