Nice propaganda piece, but states and local municipalities flip the bills for most roadwork, but can ask for funds when the government has them such as with the Obama stimulus. I saw quite a bit of highway improvement being done with signs saying to the extent "paid for by the US stimulus"
Also the unions have no "incentivize" to do slow work, they are paid by the job and most work I've seen gets done in a timely manner, often times with people working all night long the keep traffic closures to a minimum.
Sounds like to you right wing goons the answer to everything is to hire the illegals to do shotty work