A Glance at Hurricane Sandy Relief

Shouldn’t the ranks in the construction industry swell with optimism over the $50 billion spending package Congress approved for Hurricane Sandy relief last month? Suppose 1000 general contracting firms line-up for awarded contracts! Assume half of the $50 billion package is allocated to construction. A $25 billion stimulus package is a large investment. Shouldn’t this signal the beginning of a construction boom in the tri-state area NJ/NY/CT at least for the next two years?

The package was adopted on a 241 to 180 vote, on the strength of support from Democrats, as well as 49 Republicans, many of them representing communities hit hard by the Oct. 29 storm.
http://www.govtrack.us/congress/votes/113-2013/s4



It overcame a tough challenge from fiscal conservatives who believed the emergency spending should be offset with spending cuts in other parts of the federal budget to avoid adding to the federal debt.
Most Republicans — 179 in all — opposed the final package, an outcome that would have once been unthinkable in the GOP-led chamber. But it was the second vote in recent weeks to pass with a majority of Democratic votes.

http://articles.washingtonpost.com/2013-01-15/politics/36385456_1_chris-christie-final-package-majority-of-democratic-votes



Block O’Toole & Murphy posted in Construction Workers' Accidents on Friday, March 22, 2013 that Construction workers are working at a record clip with construction spending exceeding $30 billion dollars for the first time since 2008; let's hope more work does not lead to more serious injuries and fatalities on the job. A recent New York Post article discusses the increases and a Building Congress President is quoted as saying it it "terrific news for the industry. "
http://www.blockotoole.com/blog/2013/03/construction-work-in-nyc-continues-to-explode.shtml



By Contrast Greg David On New York examines whether NYC Construction is really growing.

Greg David @GregDavidonNY

October 22, 2012 5:59 a.m. Updated: February 11, 2013 6:28 p.m.

Last week the New York Building Congress issued a bullish report on the city's construction industry. It said that spending would reach $30.7 billion this year, the highest total since 2008, and remain at that level for the next several years.

However, the headline and the reality are somewhat different, it turns out.

First, the increase in dollar value is driven in large part by inflation. While the consumer price index is rising at an annual rate of about 2% a year, cost increases in construction over the past three years have been on the order of 20%, estimates Building Congress President Richard Anderson. In real terms, the report notes, there has been no increase in construction spending in the past three years. Part of this is the rebound in material prices from the lowest of the Great Recession, exacerbated by the increase in the price of oil. Don't forget that recent contracts provide wage increases, even as they implement work rule changes.

The second — and most alarming — note is that employment in the industry is expected to decline slightly this year, to 110,800, the lowest number since 1998. The lack of any real boost in activity partly explains the decline.
http://www.crainsnewyork.com/article/20121022/BLOGS01/310229993



These findings are scandalous. What happened to $20 billion of the Hurricane Sandy relief package? Was it possibly distributed to NJ/CT relief? Shouldn't there be more private New York investment to finance construction services that lift construction employment above 1998 levels? The pattern emerging is that despite large economic stimulus provided by the federal agencies not enough jobs are being created.

It may surprise viewers that, sadly, $50 billion is only enough to nudge the sprawling bureaucratic government juggernaut. The details of how the $50 billion is allocated illustrate the enormous overhead absorbing the bulk of relief package before it reaches neighborhoods in the form of relief.

http://www.govtrack.us/congress/bills/113/hr152/text

Hurricane Sandy Relief Bill at a Glance

• 1_TITLE II $20,000,000,
• 2_construction $9,000,000,
• 3_operation and maintenance $742,000,000,
• 4_flood control and coastal emergencies $582,000,000,
• 5_TITLE III $10,000,000
• 6_office of inspector general $1,000,000,
• 7_disaster loans program account $100,000,000,
• 8_TITLE IV $143,899,000,
• 9_Federal Emergency Management Agency $5,379,000,000,
• 10_Science and Technology $585,000,
• 11_Domestic Nuclear Detection Office $3,869,000,
• 12_General Provision--This Title $49,875,000,
• 13_National Park Service $234,000,000,
• 14_Bureau of Safety and Environmental Enforcement $3,000,000,
• 15_TITLE VI $100,000,000,
• 16_RELATED AGENCIES $2,000,000,
• 17_TITLE VII $24,235,000,
• 18_DEPARTMENT OF VETERANS AFFAIRS $21,000,000,
• 19_medical facilities $6,000,000,
• 20_National Cemetery Administration $1,100,000:
• 21_Departmental Administration $531,000:
• 22_construction, major projects $207,000,000,
• 23_TITLE VIII $14,600,000,
• 24_Federal Railroad Administration $32,000,000,
• 25_Federal Transit Administration $5,400,000,000,
• 26_DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT $3,850,000,000,
• 27_Administrative Provision--Department of Housing and Urban Development $218,000,000,
• 28_GENERAL PROVISION--THIS CHAPTER $290,000,000
• 29_procurement, acquisition and construction $186,000,000,
• 30_DEPARTMENT OF JUSTICE $10,020,000:
• 31_Drug Enforcement Administration $1,000,000:
• 32_Bureau of Alcohol, Tobacco, Firearms and Explosives $230,000:
• 33_Federal Prison System $10,000,000,
• 34_SCIENCE $15,000,000,
• 35_RELATED AGENCIES $1,000,000:
• 36_CHAPTER 3 $5,370,000,
• 37_Operation and Maintenance, Navy $40,015,000,
• 38_Operation and Maintenance, Air Force $8,500,000,
• 39_Operation and Maintenance, Army National Guard $3,165,000,
• 40_Operation and Maintenance, Air National Guard $5,775,000,
• 41_PROCUREMENT $1,310,000,
• 42_REVOLVING AND MANAGEMENT FUNDS $24,200,000,
• 43_CHAPTER 4 $50,000,000,
• 44_construction $3,461,000,000,
• 45_operation and maintenance $821,000,000,
• 46_flood control and coastal emergencies $1,008,000,000,
• 47_expenses $10,000,000,
• 48_GENERAL PROVISION--THIS CHAPTER $7,000,000,
• 49_Small Business Administration $20,000,000’
• 50_office of inspector general $5,000,000,
• 51_disaster loans program account $520,000,000,
• 52_CHAPTER 6 $1,667,000:
• 53_United States Immigration and Customs Enforcement $855,000:
• 54_United States Secret Service $300,000:
• 55_Coast Guard $274,233,000’
• 56_Federal Emergency Management Agency $11,487,735,000,
• 57_disaster assistance direct loan program account $300,000,000,
• 58_Science and Technology $3,249,000’
• 59_CHAPTER 7 $78,000,000
• 60_National Park Service $50,000,000,
• 61_construction $348,000,000’
• 62_Departmental Operations $360,000,000,
• 63_ENVIRONMENTAL PROTECTION AGENCY $725,000,
• 64_Hazardous Substance Superfund $2,000,000,
• 65_Leaking Underground Storage Tank Fund $5,000,000,
• 66_State and Tribal Assistance Grants $600,000,000,
• 67_RELATED AGENCIES $4,400,000,
• 68_OTHER RELATED AGENCY $2,000,000,
• 69_CHAPTER 8 $25,000,000,
• 70_DEPARTMENT OF HEALTH AND HUMAN SERVICES $800,000,000,
• 71_CHAPTER 9 $30,000,000,
• 72_Federal Highway Administration $2,022,000,000,
• 73_Federal Railroad Administration $86,000,000,
• 74_Federal Transit Administration $10,900,000,000,
• 75_DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT $16,000,000,000,
• 76_GENERAL PROVISIONS--THIS CHAPTER $1,000,000
• 77_DIVISION B--SANDY RECOVERY IMPROVEMENT ACT OF 2013 $5,000,000,
• 78_DIVISION A--DISASTER RELIEF APPROPRIATIONS ACT, 2013 $6,000,000: