Trump Administration Continues Cheerleading on Infrastructure
In the week culminating with the inauguration of President Donald Trump, members of the incoming administration continued to emphasize their desire for massive infrastructure investment, even as concerns continue about the specifics of the plan.
Rep. Ryan Zinke (R-Mont.), Trump’s nominee for secretary the Interior Department, told the Senate Natural Resources Committee on Jan. 17 that rebuilding America’s infrastructure should include $12.5 billion in backlogged repair work at more than 400 national parks.
Speaking the same day to the U.S. Conference of Mayors, Vice President Mike Pence renewed a campaign pledge to upgrade the nation’s transportation system and other infrastructure facilities. Pence told the mayors, “In addition to urging me to send along greetings, he said, ‘Tell them we’re going to do an infrastructure bill—and it’s going to be big.”
The Trump campaign released in October an infrastructure proposal from two Trump advisors—Wilbur Ross, who is the president-elect’s nominee for commerce secretary, and Peter Navarro, recently named by Trump as head of a new National Trade Council—that would utilize tax credits to generate private capital to fund revenue generating projects. Although the plan has drawn substantial criticism from a number of sectors, there has been no further mention of it from Trump transition officials.
During her Jan. 11 confirmation hearing, Elaine Chao, Trump’s transportation secretary designee, indicated that she believed the president elect’s infrastructure plan would include both direct federal investment and project financing tools.
ARTBA is continuing to work to ensure any infrastructure initiative includes a permanent Highway Trust Fund revenue solution to support increased federal surface transportation investment and new resources and tools to boost public private partnerships.
U.S. Supreme Court to Hear Jurisdiction Arguments in “Waters of the U.S.” Case
The U.S. Supreme Court will decide which federal court level is the proper jurisdiction to resolve disputes arising from the federal Clean Water Act (CWA). Arguments are expected to be heard in mid-April.
The question grows out of existing ARTBA-supported litigation over the U.S. Environmental Protection Agency’s (EPA) “waters of the United States” (WOTUS) rule. ARTBA and its industry allies assert the WOTUS rule should be defended at the federal district court level, which is closer to where the regulation impacts local projects and landowners. The EPA claims federal appellate courts should decide these disputes.
ARTBA asserts the WOTUS rule will expand federal jurisdiction under the CWA to cover virtually any wet area, including roadside ditches. Such an expansion of federal authority will lead to increased permitting requirements and unnecessary delays and litigation for transportation construction projects.
The WOTS rule is currently stayed nationwide pending a final decision by the courts. In hearing the matter of proper court jurisdiction, the Supreme Court will not make a decision on the substance of the WOTUS rule. The WOTUS rule itself will be considered once proper jurisdiction is determined. It also remains to be seen how the Trump administration’s promises to withdraw the rule will impact the litigation.
FASB Disclosure Rules Assistance
In accordance with OCA collective bargaining agreements, OCA contractor members contribute money into various pension plans on behalf of their craft employees. These pension plans are referred to as multi-employer pension plans. These plans provide benefits to union employees who may work for many employers during their working careers, thereby enabling them to accrue benefits in a single pension plan for retirement. The Financial Accounting Standards Board (FASB), which sets accounting rules for U.S. companies, implemented standards requiring disclosures from employers participating in multi-employer pension plans (Accounting Standards Update 2011-09). The standards require contractors to report the following information on their financial statements for all multi-employer pension plans in which they participate:
• The legal name, employer identification number and plan number
• The amount of employer contributions made to each significant plan and to all plans in the aggregate
• An indication of whether the employer’s contributions represent more than five percent of total contributions to the plan
• The expiration dates of collective bargaining agreements and any minimum funding arrangements.
The most recent certified funded status of the plan, as determined by the plan’s so-called “zone status”, which is required by the Pension Protection act of 2006.
OCA annually compiles a spreadsheet to assist its contractor members with the required financial disclosures. Please click on the following link to the 2016 Tax Year FASB Assistance Spreadsheet.The purpose of the spreadsheet is to provide plan information that may be helpful to OCA contractor members in complying with the disclosure requirements. Employers remain solely responsible for the financial disclosures. OCA member contractors will also need to determine the amount of employer contributions made to each plan and to all plans in the aggregate.
If you have any questions, please contact Mark Potnick in the OCA office at 614-488-0724.
Conaway Conference Sponsorship Available
Because of the nice advertising opportunities, many companies who did not sponsor last year, let us know that they wish they had! The cost is $500. Your company name will be displayed on the big screen in the large conference room at the beginning of the event on March 14, and will also be inserted in each program distributed on both March 14 and 15. To help you decide, here are the attendee numbers from last year:
1st day – ODOT attendees – 358
1st day – OCA attendees – 226
2nd day – ODOT attendees – 173
2nd day – OCA attendees – 52
You will be able to register or sponsor this event by going to our website. Contact Chris Engle or Rachel Sirca with questions.
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