News to Note: President’s Message to the UTCA - August 2005

The construction industry has been hitting on all cylinders lately. With the value of new construction put in place, up 11% from the same time last year, we're headed for another exceptional year. The increase is well balanced: private residential, +13%, private nonresidential, +7%, and public, +3%. These numbers also reflect the increase in orders for construction materials and supplies. Obviously, we owe our thanks to former President Dwight Eisenhower, who, 50 years ago next June, envisioned the benefits to creating a federal interstate construction program. It is easy to see how the road network changed the face of America and how the entire system helped shape the growth of our industrialized economy, security for its people and the quality of life experience by all.

Keeping President Eisenhower’s legacy alive, we must maintain the great infrastructure investment that helped shape our country. Elected officials in Washington continue to develop a compromise for the multi-year transportation reauthorization bills. Transportation Secretary Mineta has informed members of Congress that President Bush would veto any bill providing investment levels in excess of $284 billion. At this time, Congress is down to a handful of issues that still must be resolved to move forward on this issue. To no ones surprise, one of the last sticking points is the issue of increasing each state's minimum rate of return on their contributions to the Highway Trust Fund from the current 90.5% to 92% by 2009. Several donor state lawmakers, New Jersey included, are pushing for a formula that would provide an immediate 92% return. Hopefully we will have a bill passed by the time you read this article.

On the state-level, although plans to replenish the states near empty transportation trust fund are moving slower than southbound parkway traffic on a Friday night in July, acting Governor Richard Cody has continued to standby his commitment to resolve the transportation funding crisis during the fall/winter session of the Legislature. With gas prices skyrocketing, it is a horrible time to talk about raising gas taxes. But the state can't just keep borrowing dollars to maintain the significant investment in our infrastructure. Based on public comments in our State newspapers, many legislators are beginning to understand that New Jersey is operating in crisis mode on transportation funding and recognize the need to address this issue with reforms to the program, coupled with a long-term stable funding source.

If we expect our elected officials to support our efforts and make tough political decisions, we must give them the necessary financial resources to inform their constituency. I want to thank our proactive members who have made contributions to the PAC and given continuous support.

I E W is featured in this publication. Congratulations on your 80th anniversary! It is a goal that many in our Association aspire to achieve. May your success continue.

Another milestone has been reached in our organization. Forty years ago, a group of contractors with the foresight to recognize the need for a collective body to represent their industry established the UTCA. The progress of the organization has been significant. Under the leadership of Bob Briant Sr., and the various members of the Board of Directors, the Association, eleven hundred strong, has established itself as a credible voice to construction industry interests, organized labor, public safety organizations, environmental organizations, and others. Bob Sr. has organized an effective staff to carry out the philosophy of the Association and has prepared Bob Briant Jr. as Chief Executive Officer to lead the Association for years to come.

In closing, my year of service as president of the UTCA has been most gratifying. I would like to thank all who have helped to make my tenure productive. As your representative, it gave me an opportunity to see firsthand the efforts by our legislative affairs team on a state and national level. The respect they have earned through years of addressing issues in a most ethical manner have helped to advance our industry. The professionalism of the back-office support staff contributing to the success of our annual convention, area membership meetings, safety seminars, and this publication, are exceptional. Also, I would like to congratulate Jack Murphy on his role as incoming president of the UTCA. He will be officially sworn in to this new position at the convention in September. Jack, the Board and I wish you the best of luck and offer you all the support you will need.

~ James E. Johnston, Jr.