Final Appropriations Agreement in Sight

Congressional leaders and White House negotiators are finalizing their negotiations over the remaining five appropriations bills.  It is expected that the House will approve the final bills in an omnibus package on Friday, November 12, with the Senate voting on Tuesday or Wednesday of next week.  Congress will adjourn for the year after they vote on the appropriations bills.  The final agreement will likely include an across-the-board cut of less than 1%.  After all 13 bills are signed into law, AGC will post an analysis of  the  bills  on our  website  (www.agc.org).

FAA Negotiations Collapse: After days of negotiations, Chairman Bud Shuster rejected a Senate proposal and declared the FAA reauthorization bill dead for this session of the 106th Congress.  Chairman Shuster pledged his commitment to work to “unlock the Aviation Trust Fund” next year.  Shuster’s effort to reform aviation funding so that all aviation user-tax revenue is spent on aviation system improvements, as well as a continuation of the historic general fund contribution to FAA programs, was met with resistance from the Senate negotiators.  Instead of accepting a lesser proposal, Shuster expressed disappointment that his objective could not be achieved, and vowed to fight next year to achieve his goal.

In response to the collapse of the multi-year reauthorization bill, the Senate passed a six-month extension of Airport Improvement Program (AIP) funding.  Rep. Shuster opposes another short-term extension of the program because he wants to keep pressure on the Congress to pass a multi-year bill.  It is possible that an extension, despite Shuster’s objection, will be included in one of the final appropriations bills that will be voted on between now and November 16.  The Congress is expected to adjourn for the year by November 16.  Thanks to all of you who contacted your Senators and Representatives in support of aviation investment.

AGC Meets to Discuss Miller Act Implementation: On November 10, 1999, AGC met with Office of Federal Procurement Policy Administrator Deidre Lee to discuss regulatory implementation of the Construction Contractor Payment Protection Act (P.L. 106-49). The law requires the Federal Acquisition Regulation (FAR) Council to publish proposed regulations within 180 days of enactment, which was signed August 17, 1999. The FAR Council expects a proposed rule to be published by December 17, with a 60-day comment period. A final rule is expected by early spring 2000.

Mountaintop Mining Practice Becomes Controversial Appropriations Issue: A controversial court decision stating that some mountaintop mining practices violate the Clean Water and Surface Mining Control and Reclamation Acts in disposing dirt and other mining material in valleys and streams (Bragg v. Robertson, S.D. W. VA 10/20/99) has put a stop to mountaintop mining.  In West Virginia, this has jeopardized 20,000 mine-related jobs. Senator Robert C. Byrd (D-WV) and the West Virginia delegation are working in the limited time remaining this session to find a common-sense solution, balancing job protection with environmental improvement. The court decision and subsequent Congressional action is pitting traditional Democrat allies -- the United Mine Workers and environmental activists -- against each other.  AGC is supporting Sen. Byrd’s efforts.

Senate Cancels Blacklisting Hearing: A joint committee hearing with the Senate Governmental Affairs Committee and the Senate Health, Education, Labor, and Pensions Committee scheduled November 10 was postponed until the second session of this Congress. Many Senators expressed an interest in participating, but had conflicts due to last minute appropriations negotiations. It is estimated that as many as 1,400 comments were filed by the November 8 comment period deadline.  

Tax Cut Update: Legislation to hike the minimum wage while providing business tax relief is snaking its way through Congress to an uncertain future.  By a vote of 54-44, the Senate this week approved Republican sponsored legislation to increase the minimum wage by $1 over three years and provide roughly $75 billion in business tax relief over ten years.  The House Ways and Means Committee, meanwhile, marked up their own version of this bill.  A major difference is that the  House bill converts the unified credit to a true exemption, lowers the highest rate to 50% by 2002, and reduces all rates by 1 percentage point in 2003 and 2004.  The House bill also contains a Sense of Congress that “the death tax relief in this Act is considered a first step in our effort to ultimately repeal this onerous tax.”  The House bill could possibly reach the floor for a vote next week.  However, should a minimum wage/tax cut bill eventually pass Congress, President Clinton will likely veto it.