February 24, 2004

WASHINGTON, D.C. – Governor Jennifer M. Granholm and several Michigan Congressmen met today with a key U.S. House leader to discuss the importance of a higher return on federal transportation money for the state’s highway, transit, and economic development needs as well as critical border issues.

"Michigan historically has been a donor state, giving the federal government more in transportation-related taxes than we get back in road funding," Granholm said. "The reauthorization of the federal transportation bill would give Michigan more transportation funding to help us create more jobs and meet Michigan’s road improvement goals."

The Governor was scheduled to be joined by Congressmen Pete Hoekstra (R-Holland), Vern Ehlers (R-Grand Rapids), and John Dingell (D-Dearborn), today met with Congressman Don Young (R-Alaska), Chairman of the House Committee on Transportation and Infrastructure to discuss the reauthorization of the Transportation Equity Act: A Legacy for Users (TEA LU).

In the bill, Michigan stands to gain $7.7 billion over the next six years in federal road funding. The bill also contains a provision that all states reach 95 percent on Highway Trust Fund contributions by 2009, the sixth year of the bill. Currently, Michigan gets back only about 88 cents for every dollar it sends to the federal government in transportation-related taxes.

"Clearly, any time we can increase federal funding for Michigan’s roads and highways, it is a victory for Michigan’s motorists, businesses, and tourists," Granholm said. "My meeting today with Chairman Young was to emphasize the importance of increased transportation funding to Michigan and how it helps our economic development and job growth strategies."

Granholm and Young also discussed the need to change the formula used to determine border infrastructure funding. An amendment by Michigan Senators Carl Levin and Debbie Stabenow changed the formula to ensure Michigan received more border infrastructure funding to improve border crossings between Michigan and Canada.

"Swifter, more efficient border crossings that protect our national security and enable Michigan’s manufacturers to keep pace and not suffer economically are vital to our state," Granholm said. "We want strong border protection, but we do not want the ability to move goods and products adversely affected."

Granholm also expressed her appreciation to Chairman Young for his efforts to double available transit funding, saying Michigan’s public transit system is heavily dependent on buses, not light rail.

"In the Senate, we received assurances that Michigan will see increased transit funding for buses," Granholm said. "I am hoping we can count on the House for the same support. Buses help move workers from the city to the suburbs and from the suburbs to the city, playing an important role in our state’s economy."

Finally, Granholm pressed Chairman Young for a quick approval of TEA LU because of the state’s short construction season.

"The quicker we can get an infusion of new federal road funds into our state, the faster we can create more jobs and grow our economy," Granholm said. "Any delays in the reauthorization will only hurt our economy."