Moro Corporation (MRCR)

[ghmm]

Pressure Builds for Infrastructure Outlays

Regardless of the concerns in this article I think it is an extremely high probability there is significant spending in infrastructure. Since I don't (currently) own any rail related stocks I say forget the railroads fix our roads and bridges :). Disclosure I am long MRCR, SMID and IRD.TO which would benefit from road and bridges.

http://online.wsj.com/article/SB122705499948839373.html?mod=todays_us_page_one

WASHINGTON -- Business and labor groups are ramping up a lobbying campaign to persuade President-elect Barack Obama and the next Congress to back a huge boost in infrastructure spending in an effort to create jobs and kick-start economic growth.

These interest groups have increased their investments in Washington. The general-contracting sector, for example, gave $22.6 million of political donations during the 2007-08 election cycle, a 22% increase from the 2006 election.

The construction lobby is asking Congress to quickly approve $18 billion for highways and bridges and an additional $10 billion for water-infrastructure projects. Railroads want new tax incentives to add track to ease congestion at choke points. The aviation industry wants to boost a federal program for runway construction. And telecommunications firms want tax breaks to expand broadband service, while electric utilities want incentives to modernize the transmission grid.

The lobbying push comes as a broad economic-stimulus bill with $13 billion of transportation spending appears headed for a defeat in Congress this week. Advocates of infrastructure spending are seizing on everything from rising unemployment to last year's bridge collapse in Minneapolis to argue for outlays for various projects.

"We are driving infrastructure to the top of the agenda," said Janet Kavinoky of the U.S. Chamber of Commerce, who appeared with an ally from the United Steelworkers union Tuesday at a forum sponsored by the Campaign for America's Future, a left-leaning think tank.

Industry lobbyists say economic turmoil and the government's bailout of other market sectors has given them hope for success. Many feel there will be more emphasis on public-works funding next year, once Democrats are in charge of the White House and Congress.

"As a general rule, Democrats are inclined to be more favorably disposed to infrastructure investment as an economic stimulus than Republicans," said Todd Hauptli, a lobbyist for the American Association of Airport Executives.

Infrastructure proponents aren't counting on any quick fix next year. Among the obstacles they face: a federal deficit that could hit $1 trillion next year alone and a raft of competing policy proposals.

Congress is also due to take up a six-year highway bill that could carry a $500 billion price tag. Debate on that legislation could pit lobbyists for other modes of transportation, such as railroads, against supporters of more spending on roads.

Looming over it all is the question of how to pay for a big wave of public works. Gasoline-tax receipts, the main source of federal transportation dollars, have been falling this year as Americans cut back on driving. A commission created by Congress this year recommended more than doubling gas taxes from the current 18.4 cents a gallon. But Mr. Obama and his aides steered well clear of advocating any increase during the campaign.

Meanwhile, some of those pushing to increase infrastructure spending fear the next White House might choose other priorities -- such as narrowing the budget deficit or opting for other forms of stimulus spending.[Obama has publicly stated and sited economists in saying stimulating the economy is more important even if we put the deficit issue aside for a couple years]

"The election of Obama offers opportunity. It doesn't guarantee anything," Rep. Keith Ellison (D., Minn.) said Tuesday, cautioning transportation lobbyists against overconfidence.

If lobbyists succeed in getting something approaching what Democratic Rep. Lynn Woolsey of California on Tuesday called "a new New Deal," it will be a significant shift. Over the past couple of years, construction lobbies have repeatedly failed to get lawmakers to approve big increases in infrastructure spending. Their only recent success was getting Congress in September to put $8 billion into the rapidly depleting Highway Trust Fund, the main source of federal transportation dollars.

"There is a lot of pent up demand," Mr. Hauptli said.

Write to Christopher Conkey at [e-mail] and Brody Mullins at [e-mail]