'04 Budget Not All Wine and Roses for Construction Industry

WASHINGTON, DC-Members of the construction industry have given President Bush’s FY 2004 budget proposal the once over, and conclude that the package presents a somewhat grim picture for construction endeavors down the road. The Associated General Contractors of America, the largest national construction trade group in the US, says its members are gearing up to make their positions known to the administration and lawmakers. “We look forward to the coming debate in Congress,” the AGC attests in its official response to the budget announcement.

While the budget for family housing construction is to remain at the same $1.3 billion designated in the previous budget, other facets of the nation’s construction industry are in for big changes. An issue that is high on AGC’s list of priorities is the proposed 20% cut in Army Corps Construction. The reduction would leave the allocated funds for that segment at $1.35 billion–$350 million less than the FY 2002 figure. Funding for community development grants by the US Department of Housing and Urban Development will be $300 million less than the $5 billion allotted in FY 2002. “With construction representing 8% of the GDP and about 5% of total employment, we firmly believe that a commitment to construction programs shows commitment to economic growth.”