Economic Stimulus

Today the Senate is debating the merits of the Economic Stimulus Package.

That the US economy is in peril is no longer a matter of debate. What is also clear is that the design and construction industry plays a vital role in this country’s economy, and that without the industry’s recovery, the recession will persist and perhaps deepen. Roughly one out of every ten dollars of our economy is invested in design and construction. The housing industry is the largest component of this expenditure and has received the most press because of its precipitous decline and palpable impact on Main Street America. However, a review of the latest McGraw Hill Construction Report reveals that all market sectors, including institutional, hospitality, and commercial, are sagging as well. The Stimulus Package affords Congress the opportunity to not only reinvigorate our economy through much needed construction projects; but, it is also an opportunity to build a better country through sustainable design.

The American Institute of Architects has outlined a plan for restoring our economy and greening our communities. It’s called Rebuild and Renew America, and I strongly endorse it. The plan calls for the prioritization of funding for projects which can commence within 24 months; for projects that rebuild and improve the safety of our infrastructure; and, for projects that create energy efficient, sustainable, and healthy communities. The AIA does not advocate only for projects that are “shovel-ready”, but rather for investment in the planning and design process itself.

Specifically, the plan calls for an investment of nearly $100B in our industry. Among the targeted expenditures are:$25B to help our schools repair and modernize their facilities and invest in green design initiatives, and $700M to create a pilot program to develop model school campuses; $10B for energy efficient upgrades of federal buildings; $10B for energy efficient upgrades of state and local residential, commercial, industrial and healthcare facilities; $30B for the Community Development Block Grant program; $10B for energy efficiency and green design investment in projects such as affordable housing; $12B for transit facilities; $130M in funding and grants for historic and tribal preservation; and, finally tax relief for businesses, including the acceleration of the depreciation of energy efficient HVAC installations on certain properties.

It remains to be seen how many of these provisions will survive the Senate version of the bill, but the time for debate is past.