Michigan Infrastructure and Transportation Association A STATE IN NEED

Michigan Infrastructure and Michigan Infrastructure and Transportation AssociationTransportation Association

A STATE IN NEEDA STATE IN NEED

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SNAPSHOT of Michigan’s Transportation Network

Miles of state and local roads in poor condition

Miles of unpaved road

Number of counties that have pulverized roads

Structurally deficient/functionally obsolete state and

local bridges

Average additional annual vehicle operating costs due

to bad roads in MI

3,052

$370

28,700

40,395

Michigan’s Michigan’s Infrastructure Infrastructure is Crumblingis Crumbling

Trucker Survey -- 3rd worst in nation (Overdrive Magazine)

8th worst road system based on overall performance.

4th worst rural interstate conditions.

8th worst in urban interstate conditions.*Source: TF2 Report

Current Lansing Area Bridge -- Deteriorated

Support Beam

Michigan Asset Management Council

Annual Report

In 2004, 11,499 federal aid lane miles were rated as poor. By 2009, that number increased to 18,411.

The cost of returning a poor road to good condition is 4-5 times greater than the cost of returning a fair road to good condition.

“Allowing this trend to continue will have significant financial and economic consequences.”

9 Out of Top 10 Counties with

Worst Roads are in Rural Areas

More than 3 out of every 5 accidents occur on rural roads

“In averaging the 10 counties with the highest fatality rates, it becomes apparent that they are all rural in nature.”

DRIVE MI Analysis of Traffic Accidents in Michigan

Are Urban Counties Are Urban Counties Getting their Fair Share?Getting their Fair Share?

Michigan’s System is Collapsing Michigan’s System is Collapsing Because of Decades of NeglectBecause of Decades of Neglect

• U.S. Census data says that Michigan rates 48th in per capita spending on highways -- 25 percent below the national average.

• The MTA study concludes that the state has ranked at the bottom in infrastructure spending for over a decade.

--Michigan Townships Association, October 2010

As gas prices and fuel As gas prices and fuel efficiency increase…efficiency increase…

$4.00/gallon

Gas tax revenues decline.Gas tax revenues decline.

$2001/02 -- $939 million

2007/08 -- $830 million

Why Getting Only Fed Match is Poor Goal

Must increase spending 35% to

maintain 2007 spending levels (w

full match)

Full Federal Match

How Much Money Do We Need?How Much Money Do We Need?Assume $1 Billion of New MoneyAssume $1 Billion of New Money

$342M MDOT

$342M Counties

$190M Cities

$2M Delta$35M Oakland$21M Macomb$6M St. Clair $12M Genesee$34M Wayne

Will this amount fix your local county’s

road system?

The Financial Needs Are MassiveThe Financial Needs Are Massive

TF2: Double InvestmentTF2: Double Investment

$3 Billion/Year Needed$3 Billion/Year Needed

MITA Goal: MITA Goal:

$1.5 Billion Increase in Annual State $1.5 Billion Increase in Annual State InvestmentInvestment

$3 Gallon $3 Gallon Pump PricePump Price

*Approximate Value*Approximate Value

19 Cents State Gas Tax

18.4 Cents Fed. Gas Tax

18 Cents State Sales Tax *

55 Cents/Gallon in Taxes

$2.45 Actual Fuel Price

2011 PSC Study (Soon to be Released)2011 PSC Study (Soon to be Released)

Sales Tax on GasSales Tax on GasAll Sales Tax --

First 4 Percent $4.2 Billion

Prop A 2 Percent $1.9 Billion

Sales Tax on Fuel Purchases: $718 million (2009)

Legislature can exempt certain items from sales tax, including gas purchases

How do you make existing sales tax recipients whole?