from Timothy A. Murphy, CEO, Sacramento Regional Builders Exchange
WHITE HOUSE AND BIPARTISAN SENATORS AGREE TO INFRASTRUCTURE FRAMEWORK
On June 24th, President Biden and the bipartisan group of Senators announced they had come to an agreement on a package, including spending levels and revenue offsets. The details of the final agreement are still being worked out, but it is expected to closely resemble the nearly $1 trillion infrastructure framework the group put forward last week. The proposal focuses on “hard” infrastructure investment and does not include any tax increases.
Topline for new spending in the proposal shifted from $579 billion to $559 billion, based on repurposing $20 billion for broadband funds. This is less than the $1 trillion President Biden initially sought but more than original proposals from Republican senators.
Much work remains to secure 60 Senate votes for the bipartisan package. Senator Chris Murphy (D-Conn.) stated Wednesday on CNN, “that deal has 20 votes — not 60 votes,” emphasizing that the group of 21 who wrote the plan now needs to sell it to their Senate colleagues.
On the Republican side of the aisle, it is unclear how many additional GOP votes the bipartisan package will garner beyond the 10 senators in the bipartisan group. This obstacle is only growing as additional Senate Democrats say they won’t support a bipartisan deal. Senator Bernie Sanders (I-VT.) has said he would not support the plan, while Senator Elizabeth Warren (D-Mass.) said she could not support a package that doesn’t include child care, clean energy and requiring the wealthy to pay more in taxes.
Additionally, Senators Ed Markey (D-Mass.) and Jeff Merkley (D-Ore.) vowed to oppose any infrastructure bill that does not include major policies to address climate change. The bipartisan agreement includes provisions around electric vehicles and the power grid, but that might not be enough for these climate-focused senators.
These objections will increase the number of Senate GOP votes needed for the package to clear the 60-vote filibuster threshold.
NEWSOM RECALL CAN MOVE FORWARD
According to the final signature verification report from the Secretary of State, recall organizers turned in 2,161,349 signatures and county election officials found 1,719,943 were valid, meaning there are more than enough signatures to put a recall on the ballot. But a few things need to happen before an election is called.
Here’s a breakdown of the timeline:
- Counties Get Notified: The Secretary of State has 10 business days to notify counties that there are enough valid signatures to put the recall before voters.
- Withdrawal Period: Then from April 26 to June 8, anyone who signed the recall petition can withdraw their signature.
- Checking Signature Count: At the end of the withdrawal period, county officials have until June 22 to let the Secretary of State know how many signatures were withdrawn.
- Estimating Cost: If there are still enough valid signatures, the Secretary of State must “promptly” notify the Department of Finance, which then has 30 business days to estimate the cost of a recall election. According to the Secretary of State, this period ends August 5, but the review could be completed sooner. The agency must present two separate estimates: one for holding a special recall election and another for holding the recall in conjunction with the next regularly scheduled election, which is a primary election on June 7, 2022 (Newsom is up for re-election next year and would run in this election anyway).
- Legislature Comments: After that, the Legislature has 30 calendar days to comment on the estimated cost. On June 10, Senate and Assembly leaders said they would commit $215 million to county election officials and would waive this period, which will move up the recall timeline.
- Election Called: Only after that period can the Secretary of State certify the signatures, then the Lt. Governor can call a recall election. It must be held within 60-80 days of the time signatures are certified.
Based on these deadlines, a recall election could take place anytime from late August through October.
WHO WERE THE MOST INFLUENTIAL CALIFORNIA LAWMAKERS IN 2020?
Love it or hate it, social media communication is an ever-increasing first stop for Californians seeking news and information, exceeding traditional news channels. Capitol political communications firm Randle Communications released their annual survey of California’s most influential lawmakers on social media. Randle noted the abrupt halt of California's 2020 legislative session when the Governor declared a statewide stay-at-home order. Committee hearings that weren't canceled went completely virtual while legislators, staff and lobbyists were confronted with limited access to the Capitol building. To continue doing the people's business, lawmakers, reporters and advocates were forced to pivot and adapt to digital advocacy, accelerating the use and acceptance of digital tools as a means to shape the process, debate issues and drive policy. Those who didn't adapt were left behind.
Following legislators and engaging them on social media can help advance construction industry issues. See the report here and how area legislators ranked: https://www.randlecommunications.com/influencer/lawmakers/
CONSTRUCTION COSTS CONTINUE TO CLIMB
Engineering and construction costs rose for the eighth consecutive month in June, according to IHS Markit and the Procurement Executives Group (PEG), as materials and equipment costs continued to push costs upward. Semiconductor supply has proven especially troublesome as manufacturers did not have the opportunity to match the pace of production with the rapid recovery in demand in automotive and industrial electronics sectors.
For the past seven months, the materials and equipment sub-index has reflected escalating prices, which caused it to rise another 1.9 index points in June to a 85.0. All categories under the materials and equipment sub-index maintained a sixth consecutive month of increases in June, though index levels fell from last month in several categories. Most survey respondents did not report any shortages for materials and equipment currently, other than restrictions due to shipping.
Of note:
- Copper prices have increased for the past year, reaching an index figure of 87.5 in both May and June, the highest readings since January 2021.
- Costs of ocean freight from Europe and Asia to the U.S. rose for the tenth month in a row, with both categories hitting a new index peak of 95.5.
- The electrical equipment and transformers sub-indices remained high in June at 95.0 and 87.5, respectively, as demand for semiconductors outpaces available supply.
- Labor costs continued to climb for the fifth straight month in each region of the U.S. and Canada.
Looking longer term, survey respondents' expectations are for future construction cost increases through the remainder of 2021, with the six-month index coming in at 66.5 overall. Labor costs are expected to continue to rise in all regions of the U.S. and Canada, based on survey responses.
CONSTRUCTION WORKERS AVOIDING VACCINE
The percentage of Americans yet to receive a first dose remains in the mid 40s — just slightly below the 46% of respondents in a Construction Dive survey this past April who said they had no plans to get the shot — demonstrating construction companies that want their workers to be vaccinated have their work cut out for them.
The national trend of construction workers’ consistent skepticism about vaccinations is raising alarm for public health officials who see vaccine hesitancy as a key barrier to ending the pandemic. Health researchers are trying to understand what’s behind that hesitation so they can help the healthcare community target interventions and address workers’ concerns.
Workers are telling pollsters that they don’t trust the vaccine (or the government providing it), and misinformation continues to blossom online. People mistakenly believe the process of getting the vaccines to market was accelerated in a way that makes it unsafe or that corners have been cut.
Additionally, the partisan divide over vaccinations comes into play. The Gallup polling organization reported in February 91% of Democrats and 51% of Republicans were willing to get the shot, and the Associated Press reported in April that states won by Joe Biden had higher vaccination rates than states that went for Trump.
“For good or bad, right or wrong, the vaccine has been politicized,” said Reid Ribble, CEO of the National Roofing Contractors Association. “We’re so regionally and politically divided. I would be willing to bet the number of construction and roofing workers being vaccinated lines up pretty closely with how progressive or conservative their states are. In rural, conservative states like Alabama, you’ll have pretty low rates, and in Massachusetts, New York and California, it will be pretty high. Because it’s also cultural, isn’t it? And when you have this blend of culture and politics, it becomes very complicated.”
Management of a Colorado roofing company — concerned about the impact on the company’s culture as well as the potential loss of employees — decided against a mandate early on, stating difficulty to find qualified workers was hard enough without placing a vaccine mandate on employees. A San Francisco general contracting company utilized anonymous employee surveys and found that vaccines — everything from their risks and effectiveness to which one to get—were an area of particular importance for team members. In response, the company and its insurance team hosted a town hall meeting with a medical doctor who answered questions about all aspects of the vaccines. The recorded event was then translated into Spanish and sent out companywide. They also provided employees up to 80 hours of supplemental paid sick leave to get the vaccination or recover from side effects. In Santa Clara County, which requires companies to ask employees if they’ve been vaccinated, 77% of the company’s employees have received their shots.
Timothy A. Murphy, Chief Executive Officer,
Sacramento Regional Builders Exchange
5370 Elvas Avenue ǀ Sacramento, CA 95819
Telephone: 916.442.8991 | Direct: 916.465.8340
Email: tmurphy@srbx.org ǀ www.srbx.org