7/24/08-Michigan needs to spend more money to make roads and bridges throughout the state more viable, according to a report.
A 19-member panel released a report studying how to pay for transportation projects without increasing the state’s fuel tax rates. The group recommended to the governor’s Transportation Funding Task Force alternatives to pay for the state’s transportation system, The Associated Press reported.
The Citizens Advisory Committee report estimates $6.1 billion annually is needed for basic improvements to roads and bridges in the state. The amount is nearly twice what current spending allots.
The report says that roads in the state are worse than those in most other states. Michigan roads also will become increasingly congested, unplowed, dangerous and pothole-riddled unless more money is invested.
Failure to address the problems is resulting in a declined quality of life and reduced economic competitiveness, the report says.
It is estimated that in two years, the state and local governments will lose an average of $950 million a year for roads. The report cites an inability to afford upfront spending required to obtain matching federal funds.
Reasons given for the slide include higher fuel costs and soaring road construction expenses. Smaller fuel purchases that result in fewer revenues for the state also is a contributing factor.
In addition, the advisory committee says more money is needed because freight coming into Michigan is expected to nearly double by 2035.
The Transportation Funding Task Force will use the report to help with recommendations for alternative ways to pay for the state’s transportation system. Its final report is due in April 2009.

1/03/08-Michigan is in need of more money to make repairs to roads and bridges throughout the state. However, Gov. Jennifer Granholm said she doesn’t want to increase the fuel tax rates to help reduce the funding gap.
The state has an estimated $700 million annual shortfall in maintaining roadways managed by the Michigan Department of Transportation. Local routes have repair needs of at least $2 billion.
Some road building and business groups have touted the benefits of boosting the state’s gas tax rate by 3 cents each of the next three years to 28 cents per gallon. The plan could generate $425 million in annual revenues at the end of the three-year period, The Associated Press reported.
The per-gallon tax on gas is 19 cents.
Other possibilities suggested by the road building and business groups to generate revenue include increasing the 15-cent-per-gallon tax on diesel to at least 19 cents and dedicating a portion of vehicle registration fees to roads.
Granholm said a study group soon will look at possible solutions. In the meantime, she recently signed legislation setting up an Alternative Road Funding Task Force.
The task force will include legislative leaders and representatives of manufacturing, tourism and public transportation, among others. The bill also sets up an advisory panel made up of roads builders and business and government groups to submit its own report to the task force.
Transportation funding options are expected to draw consideration during the regular session that begins Jan. 9.