The OC Business Council strongly supports the repeal of Section 10212 rescission of SAFETEA-LU transportation funds that will occur on October 1, 2009. The rescission of funds will undermine many of the economic benefits provided by the American Recovery and Reinvestment Act (ARRA).
OCBC is concerned that if the rescission is allowed to take place, it will result in lost jobs and opportunity for economic growth. Infrastructure investment is one of the most effective strategies for long-term economic prosperity. While we all hoped that ARRA would provide an additive effect to transportation investment, what we have experienced is that ARRA has merely filled the gap of disappearing state and local funds due to severe drops in revenue. If the rescission is not repealed, Southern California’s transportation commissions will have no choice but to delay shelf-ready projects, due to the loss of obligation authority in the range of $1.46 billion for California. Please do not allow us to take a step backwards.
With the highest unemployment levels in decades, record statewide job losses, and adverse economic conditions throughout the state, California needs your leadership to eliminate the rescission to keep Californians working. We respectfully urge you to preserve the $8.7 billion of contract authority at-risk to keep our infrastructure projects on track for economic recovery. This will have a significant impact to the economy of Southern California.