State Transportation Commission asks Legislature to take action on state transportation funding shortfall
Contact:
Bill Shreck, MDOT Director of Communications, 517-335-3084
Agency:
Transportation
August 27, 2009 -- The State Transportation Commission (STC) has adopted a unanimous resolution urging the state Legislature to take action to address a projected state transportation funding shortfall. The STC is asking legislators to carry out the legislative remedies recommended last November by the bi-partisan Transportation Funding Task Force (TF2). The resolution was passed today at the STC's August meeting in Lansing.
The STC resolution notes that MDOT projects will not have enough state revenue to match all available federal highway funding beginning in the department's 2011 fiscal year. The state revenue shortfall will result in the loss of as much as $2.1 billion in federal-aid over the four-year period from 2011 to 2014, including the loss of nearly 30,000 jobs that would have been sustained by that revenue.
Citing the TF2 Report, the resolution noted that Michigan needs to at least double its current investment in transportation to prevent a loss of up to $1 billion in federal funds each year and to adequately maintain Michigan's highways, roads, bridges, passenger transportation, freight transportation and aviation systems. The report also says that investing in transportation will create jobs and drive economic activity, attract business, increase revenue, and provide better transportation services to Michigan taxpayers.
MDOT currently needs an additional $320 million a year to maintain state highways in their current condition.
"We stand behind the solid recommendations of the TF2 Report and ask legislators to act quickly before this transportation crisis becomes a calamity," said STC Chairman Ted Wahby.
The STC resolution notes that while demands on the state transportation system are projected to increase dramatically in the years ahead, state revenue available for investment in aviation, highways and transit are in decline. Gas tax revenues dropped by $100 million in the last five years, while the cost to construct roads and bridges in Michigan has increased five times the rate of overall consumer prices from 2003 to 2008, further eroding the purchase power of motor fuel taxes. In addition, projected fuel economy increases threaten to further diminish motor fuel tax revenues.
An executive summary, the TF2 Report and list of appendices is available online by clicking on "View Final Report" at www.michigan.gov/tf2.
MDOT: Working to improve our state roads and bridges.
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