January 14, 2005

LANSING – As Congress resumes debate over TEA-21, a multi-year transportation funding plan, Governor Jennifer M. Granholm, Senate Majority Leader Ken Sikkema, Senate Democratic Leader Bob Emerson, House Speaker Craig DeRoche, and House Democratic Leader Dianne Byrum have sent a letter to the Michigan congressional delegation asking them to help return more federal road dollars to the state.

In the letter, the governor and legislative leaders note that the delay in approving the six-year transportation spending plan has cost Michigan critical road funds and jobs.

"This delay has meant a reduction of federal highway funding over the past 15 months of as much as $440 million, resulting in less construction contracts, approximately 20,000 fewer jobs, and more uncertainty as state and local agencies and our industry partners attempt to plan for the 2005 season," the letter said. "If a reauthorization bill is not approved this year, it is highly likely that state and local projects will be postponed until funds are available."

Last year, Congress approved a transportation spending plan that would have increased average annual federal highway investment in Michigan as much as $1.23 billion over the next six years, however, final negotiations on the spending plan failed to result in an agreement. The current federal highway and transit bill is set to expire on May 31.

In May 2004, the Michigan congressional delegation outlined the state’s priorities to transportation leaders in Washington, saying that they supported a 95 percent rate of return on Michigan’s gas tax contributions. From 1998 to 2003, Michigan’s rate of return was 88 cents for every dollar in gas taxes sent to Washington.

The need for a fairly funded federal transportation plan will be among those issues the governor highlights when she meets with members of the Michigan Road Builders Association at their annual conference in Mt. Pleasant today, where she will be the keynote luncheon speaker.

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