Michigan

Report: Michigan needs $3.9B more per year to keep up with road, bridge repairs

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Michigan is dealing with a $3.9 billion annual funding shortfall to repair roads and bridges within the state, based on a brand new report.

Public Sector Consultants (PSC) launched the Michigan Transportation Infrastructure Wants and Funding Options report on Tuesday. It discovered that Michigan wants a sustainable funding plan to dedicate the assets to enhance and keep roads and bridges.

“Michigan faces an annual funding shortfall of $3.9 billion, and that’s even with the funding from the governor’s bonding program and the federal infrastructure plan {dollars} included. There shall be a day coming within the not-too-distant future when these funds will dry up, however our want will solely proceed to develop,” stated Rob Coppersmith, Government Vice President of the Michigan Infrastructure & Transportation Affiliation (MITA)

The report addresses the general value of Michigan’s highway system, future funding wants, present highway funding estimates, income sources, choices to lift further income and different matters.

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The report discovered that Michigan’s transportation system wants are larger than earlier estimates. It additionally discovered that spending cash to keep up and rehabilitate roads is cheaper than ready till reconstruction is the one possibility.

Based on PSC, MDOT assessments of highway circumstances in Michigan present that 33% of all federal-aid roads and 45% of all non-federal-aid roads are in poor situation and ought to be reconstructed within the subsequent two years. Reconstruction is believed to be 5 to eight occasions costlier per lane mile than preventative upkeep.

Whereas steps have been taken to extend income, the report discovered that none of these elevated investments have been sufficient to shut the funding hole.

Funding choices listed within the report

The report outlines 5 funding choices for closing the funding hole.

  • A per-gallon motor gasoline tax enhance: “Choice one would require a motor gasoline tax enhance between $0.39 to $0.74 per gallon to satisfy the funding hole. The tax price enhance ranges from $0.39 per gallon, which meets MDOT and CRA estimates, to $0.74 to satisfy PSC’s modeled estimates for various pavement life cycle upkeep ranges.”

  • A per-dollar motor gasoline tax enhance: “Choice two would additionally enhance the motor gasoline tax and assess the motor gasoline tax on a per-dollar (as an alternative of per gallon) foundation. This will increase income throughout occasions of upper gasoline costs, however equally decreases income throughout worth downturns. Different states have moved away from this strategy as a consequence of its volatility.”

  • Gross sales tax enhance of two to three share factors: “Choice three would enhance the gross sales tax and dedicate the rise to transportation funding. It would require a gross sales tax enhance of two to three share factors devoted to transportation to satisfy the funding hole. This feature would require an modification to the State of Michigan structure.”

  • Enable native communities to cost their very own gross sales tax: “Choice 4 would permit native communities to pursue gross sales tax will increase. Whereas native communities are at present prohibited from charging their very own gross sales tax, this might be modified by means of a constitutional modification and will present native authorities models of presidency a income supply for native roads. This feature is just like possibility three.”

  • Tax folks for miles pushed on Michigan roads: “Choice 5 would generate income based mostly on the miles traveled on Michigan roads; a tax between$0.03 and $0.05 per mile traveled can be essential to satisfy the funding hole. Totally different states and international locations have explored this strategy in several methods, and the federal authorities is at present offering funding to pilot this mannequin.”

Michigan Transportation Infrastructure Wants and Funding Options report

A PDF model of PSC’s Michigan Transportation Infrastructure Wants and Funding Options report is out there under.

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(Can’t see the report? Click on right here.)

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