WHEREAS:

Legislation has been introduced in Congress that would provide a backdoor means to privatize highway and bridge maintenance and operations by authorizing a series of pilot projects allowing private companies to issue $15 billion worth of tax-exempt bonds to build, operate and maintain highway and bridge projects; and

WHEREAS:

Such proposals would create a significant new tax subsidy for private companies, lowering federal and state tax collections over the life of these projects; and

WHEREAS:

The federal government should not grant massive tax breaks to private companies for operating and maintaining highway projects that the public sector should operate and maintain; and

WHEREAS:

The highway privatization projects created by these measures would turn into giant tax shelters for the private companies building and operating the highways or bridges; and

WHEREAS:

Such proposals would allow private highway projects to escape longstanding federal protections built into current law including: labor, civil rights, environmental, planning and engineering, Buy America, and safety standards; and

WHEREAS:

These projects would put the public sponsor at undue financial risk and burden taxpayers with undetermined future costs; and

WHEREAS:

Such projects would not employ public sector transportation employees, including planners and engineers, surveyors, designers, scientists and other professional transportation employees, since the projects would be privately owned and operated.

THEREFORE BE IT RESOLVED:

That AFSCME continue to oppose highway privatization proposals through grassroots operations, direct lobbying and outreach to the Administration.

SUBMITTED BY:

Edward Keller, Executive Director and Delegate 
AFSCME Council 13
Pennsylvania