Lt. Gov, Maritime Leaders Demand Congress Release Funds for Ports and Jobs

Public officials and maritime industry leaders joined together today at the Port of Oakland to call on Congress to release funds collected from California’s port customers to improve maritime infrastructure, create jobs, and preserve California’s role as an international trade leader.

“California’s future as a global leader depends on much needed job creation and economic growth.  Utilizing the federal Harbor Maintenance Trust Fund surplus doesn’t cost anyone a dime in new taxes, and it would immediately boost our trade competitiveness, invest in California’s infrastructure, and help to grow jobs on our waterfront, our farms and our manufacturing floors,” said Lt. Gov. Gavin Newsom, speaking against the backdrop of container cranes in the Port of Oakland’s Inner Harbor.

Every year, California’s port customers pay more than $400 million in fees into a federal fund with assurances that the money will be available to fund the navigational maintenance and improvements necessary to keep U.S. ports competitive in a global marketplace. Unfortunately, the revenues deposited in the Harbor Maintenance Trust Fund are not being spent and, instead of investing these funds to keep our ports competitive, the Trust Fund has now built up a surplus of over $5 billion. 

In an effort to see the money released, Lt. Governor Gavin Newsom, the California Association of Port Authorities (CAPA), the California Marine Affairs and Navigation Conference (CMANC), the International Longshore and Warehouse Union (ILWU), and the Pacific Merchant Shipping Association (PMSA) stood united in support of California Senate Joint Resolution 15, jointly authored by state Sen. Mark DeSaulnier (D-Concord) and Sen. Jean Fuller (R-Bakersfield). SJR 15 demands that the $5.6 billion surplus in the Harbor Maintenance Trust Fund be released immediately to fund improvements at California ports, promote job creation, and support economic growth in California.

“The Californians calling on the federal government to release Harbor Maintenance funds aren’t just on the waterfront - in fact, agricultural exporters in the Central Valley are hurt when this money isn’t spent as promised,” said Sen. Fuller.  “These funds were collected for the purpose of making the necessary infrastructure improvements and by seeing that the funds are spent on those improvements, we can ensure that California’s ports are among the most competitive in the world.   Having competitive ports will help ensure that every part of California once again has a thriving economy.”

California’s three largest ports contribute an estimated $40 billion per year to national economic output and are responsible for an estimated 1.6 million jobs across the country.  To move goods, these ports depend on properly dredged channels, without which California’s international trade, including agricultural and manufactured exports, cannot be shipped in the most reliable, timely and efficient manner – resulting in increased costs for waterborne transportation users and consumers, increased air emissions and fewer jobs.

Fees paid by customers of California’s public ports generate approximately 30% of the Harbor Maintenance Tax revenues which are collected from shippers at approximately 200 ports and harbors across the United States.  However, from fiscal years 2005 to 2008, California received only about 4% of the total revenue collected.  The ports of Los Angeles and Long Beach, two of the nation’s largest container ports, currently receive less than a penny in benefits per dollar generated.

“California is facing the toughest job crisis since the Great Depression, so we need to make sure that federal investment in our trade infrastructure is a top priority,” said Sen. DeSaulnier. “This important resolution calls on Congress to release funds to our California ports in order to maintain their leadership role in international trade, and to create crucial job opportunities around our nation when we need them the most.” 

What People Are Saying About SJR 15 (DeSaulnier & Fuller) and The Need to Spend California’s Fair Share of the Existing Surplus in the Federal Harbor Maintenance Trust Fund:

“California’s future as a global leader depends on much needed job creation and economic growth.  Utilizing the federal Harbor Maintenance Trust Fund surplus doesn’t cost anyone a dime in new taxes, and it would immediately boost our trade competitiveness, invest in California’s infrastructure, and help to both grow jobs on our waterfront immediately and on our farms and manufacturing floors over the long term.”
– Lt. Governor Gavin Newsom

“California is facing the toughest job crisis since the Great Depression. We need to make sure that federal investment in our trade infrastructure is a top priority. SJR 15 calls on Congress to release funds to our ports in California in order to maintain their leadership role in international trade, and to create crucial job opportunities around our nation when we need them the most.”
– Sen. Mark DeSaulnier (D-Concord)

“The California businesses calling on the federal government to release Harbor Maintenance funds aren’t just on the waterfront.  In fact, agricultural exporters in the Central Valley are hurt when this money isn’t spent as promised.  These funds were collected for the purpose of making the necessary infrastructure improvements and by seeing that the funds are spent on those improvements, we can ensure that California’s ports are among the most competitive in the world.   Having competitive ports will help ensure that every part of California once again has a thriving economy.”
– Sen. Jean Fuller (R-Bakersfield)

“Federal investment in our trade infrastructure is vital to maintain our seaports’ significant role in the nation’s economy and to remain competitive in international trade.  The collective support of Lt. Governor Newsom, ILWU, CMANC and PMSA will go a long way in helping us get these funds released so that we can keep California Ports competitive and keep Californians working.”
– Omar R. Benjamin, President, California Association of Port Authorities,
    Executive Director, Port of Oakland

“Every year, more than $400 million is collected in California through a port user fee with the intended purpose of funding much needed port projects. And every year, that money is not spent as promised by the federal government. Spending this money as intended will clear navigational channels in the San Francisco Bay that have draft restrictions on them – if we don’t maintain our channels then our ability to maximize our exports are limited.  The taxes to pay for these projects have already been collected, but that won’t help us achieve anything if the funds we need are sitting in an account in Washington DC just waiting to be spent.”
– Jim Haussener, Executive Director, California Marine Affairs and Navigation Conference

“The workers who show up at the docks every day to build a better life for themselves, their families and their communities, also rely on the federal government to maintain the critical infrastructure improvements that have been promised to California’s ports.  We are more committed to keeping and growing good waterfront jobs than ever before, and maintaining our channels at their authorized depth is critical.”
– Robert McEllrath, President, International Longshoremen Workers Union

“Despite the sizable contributions to the Harbor Maintenance Trust Fund by port customers in California, the need for additional operations and maintenance dredging continues to persist in our harbors throughout the state.  Given the significant surplus that has been allowed to accumulate over the years in the trust fund, the inability to keep channels dredged to their maximum depth is nothing but a short-sighted drag on our economic growth.”                   
-  James McKenna, President, Pacific Maritime Association

"Maintaining California’s role as a trade leader is crucial to our economic survival, so it is imperative that the taxes already collected from California be made available for California projects immediately. We must continue to make investments in California’s ports in order to stay at the top of the game. When we lose cargo and business we lose vital jobs that are imperative to our local and state economies.”
– John McLaurin, President, Pacific Merchant Shipping Association

“These are challenging economic times and we need to keep people working.  We can put this money to good use right now by maintaining California’s federal channels.  When our channels are in good shape that means commerce can flow efficiently, our ports remain competitive internationally, and we can continue to support thousands of jobs here in California and across the nation.”
-  Gilda Gonzales, 1st Vice President, Port of Oakland, Board of Port Commissioners