WASHINGTON — The lure of roads, bridges, buses and trains isn't enough anymore to drive an expensive transportation bill through Congress. So to round up votes, congressional leaders are pitching the bills as the hottest thing around these days: job generators.
But do they really create more jobs? The answer from a lot of economists is not really. The bills would simply shift spending that was creating jobs elsewhere in the economy to transportation industries. That means different jobs, but not necessarily additional ones.
"Investments in transportation infrastructure, if well designed, should be viewed as investments in future productivity growth," said Alice Rivlin, a former director of the White House Office of Management and Budget under President Bill Clinton.
"If they speed the delivery of goods and people, they will certainly do that," she said. "They will also create jobs, but not necessarily more jobs than the same money spent in other ways."
Indeed, the question of job creation is relatively unimportant when compared to other significant economic benefits of maintaining and improving the nation's aging transportation system, such as enabling people to get to work and businesses to speedily move goods, say economists and transportation experts.
But that hasn't diminished the jobs claims being made on Capitol Hill.
"This legislation would put 2 million middle-class Americans back to work right away," Senate Majority Leader Harry Reid, D-Nev., said Thursday, as he fumed about nearly 100 amendments that have delayed action on the Senate's version of the transportation bill.
"Although our economy has gained momentum, there are still millions of Americans out of work. So it should be obvious why we can't afford to delay efforts to rebuild our roadways, railways and bridges," he explained.
In the House, Speaker John Boehner, R-Ohio, made a transportation bill the election-year centerpiece of the GOP's jobs agenda last fall when he unveiled its broad outlines. To make sure nobody missed the point, the bill was dubbed the "American Energy and Infrastructure Jobs Act of 2012."
Support for the five-year, $260 billion House bill has since fallen apart. Conservatives thought it would spend too much money, and Democrats and some Republicans balked at policy changes they say would undermine mass-transit, weaken environmental protections and penalize union workers. Boehner is struggling to craft a new bill with some mix of policy and spending that can win passage.
Urgency is growing because the government's spending authority for highway and transit programs — and its legal power to levy most of the 18.4 cents a gallon federal gas tax — expires at the end of this month. But even if that hurdle is cleared, the trust fund that finances highway and transit programs is expected to go broke sometime next winter.
President Barack Obama has pitched his own six-year, $476 billion transportation bill as a jobs plan as well, but it is obvious lawmakers are unwilling to consider such a large proposal. They've had to scour the federal budget to find money to pay for a Senate bill a quarter of that size. While paying lip service to their own bill, administration officials are also backing the more modest Senate bill, which would cost $109 billion over two years.
"A transportation bill will be the biggest jobs bill Congress could ever pass, bigger than anything else they've done in the three and a half years I've been in this job," Transportation Secretary Ray LaHood said, praising the Senate bill.
Sen. Barbara Boxer, D-Calif., the chief sponsor of the Senate bill, estimates it will preserve 1.8 million jobs that would be lost if authority to spend trust fund monies expires, and create another 1 million new jobs through a $1 billion loan-guarantee program.
- Official says gunman made 'no more baby...
- These touching Christmas ads will melt any...
- Egypt says 90 percent chance of hidden rooms...
- Officer killed in Colorado was co-pastor,...
- Police: 3 killed, 9 wounded in attack at...
- Bigotry? Hatred? Christians say they’re...
- Elder Ballard visits refugee camps in Germany...
- Carson after refugee camp tour: Syrian...
- Bigotry? Hatred? Christians say... 96
- Obama admin says states lack authority... 38
- Elder Ballard visits refugee camps in... 25
- Police: 3 killed, 9 wounded in attack... 24
- Obama pledges solidarity with France,... 19
- Officer charged with murder in teen's... 18
- Turkey downs Russian jet it says... 17
- Official says gunman made 'no more baby... 13