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Michigan Infrastructure and Michigan Infrastructure and Transportation AssociationTransportation Association
A STATE IN NEEDA STATE IN NEED
38
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?