3 – Limitation on Obligation of Funds

Whereas, Section 1500.50(e) of the Concrete Masonry Products Research, Education, and Promotion Order includes the following language restricting the disbursement of funds through the first 11 years of operation of the Checkoff:
(e) Limitations on obligation of funds: (1) In each fiscal year, through fiscal year 2030, the Board may not obligate an amount greater than the sum of— (i) 73 percent of the amount of assessments estimated to be collected under 1500.51…

Whereas, this language was only added to the Act to achieve a neutral score from the Congressional Budget Office (CBO) to communicate to Congress that the Act had no net impact on the federal budget;

Whereas, the removal of this limitation would have no impact on the federal budget or federal spending;

Whereas, this language ultimately has the opposite effect of what was intended by its inclusion, restricting the flow of money through the economy and limiting the growth of concrete masonry, thus reducing downstream tax revenue for the federal government;

Whereas, this limitation on spending greatly impacts the ability of the Checkoff program to accomplish its objectives of supporting improved revenues for those paying assessments;

Whereas, this limitation on spending is not imposed on other checkoff programs supporting other construction materials;

Now, therefore, be it resolved that the Board will hereby strongly support and actively engage to, within the scope and limitations of the Order, mitigate this limitation on spending.