Michigan is facing a nearly $4 billion shortfall in annual funding to fix its roads and bridges, according to a newly released report on the state’s infrastructure.
Public Sector Consultants (PSC) released their Michigan Transportation Infrastructure Needs and Funding Solutions report this week, highlighting the projected budget shortfall to improve the state’s roads and bridges.
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The report looked at the cost of maintaining Michigan’s roads, current road funding estimates and revenue sources, and the potential for raising more revenue to close the funding gap.
“This report makes it crystal clear that it’s time to take our infrastructure funding crisis seriously,” said Rob Coppersmith, Executive Vice President of the Michigan Infrastructure & Transportation Association (MITA). “The data speaks for itself. Michigan faces an annual funding shortfall of $3.9 billion, and that is even with the funding from the governor’s bonding program and the federal infrastructure plan dollars included. There will be a day coming in the not-too-distant future when those funds will dry up, but our need will only continue to grow.”
A 2016 report found that Michigan needed to invest an additional $2.2 billion to meet quality goals, but this new report found that number continues to rise.
The PSC report found that Michigan’s transportation system needs are higher than previous estimates and that spending to maintain and rehabilitate roads is more cost effective than waiting until a lane mile has reached the end of its design life, when reconstruction becomes the only option.
Additionally, MDOT assessments of Michigan road conditions show that 33 percent of all federal-aid roads and 45 percent of non-federal-aid roads are in poor condition and should be reconstructed in the next two years. The report found that reconstruction is five to eight times more expensive per lane mile than preventative maintenance.
“The motoring public has suffered enough,” said Ed Noyola, Chief Deputy and Legislative Director at the County Road Association of Michigan. “With the infusion of electric vehicles, now more than ever, it’s time for our legislative leaders to focus on long-term transportation funding, including a pilot mileage-based tax that will move Michigan toward a new and fair system of revenue collection for EVs.”
There have been efforts to bridge the gap over the last several years, like a raise in the gas tax in 2015, federal funding from the bipartisan infrastructure bill signed into law by President Joe Biden last year, which includes a one-time allocation of $7.3 billion, and Gov. Gretchen Whitmer’s one-time $3.5 billion bond funding for state freeways and federal roads. But the PSC report found that none of these increased investments have been enough to bridge the funding gap.
“As we see from this report, the cost of inaction is intolerable for Michigan businesses that rely on the basic infrastructure of highways and Main Streets to succeed,” said Brad Williams, Vice President of Government Relations at the Detroit Regional Chamber of Commerce.
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