Task Force Report Says Michigan Must Double Its Investment in Transportation
Michigan is in a transportation funding crisis, and drivers and other users are going to have to pay more to push it out, a new report says.
Last week, a special task force recommended several possible solutions to help Michigan find its way out of the crisis. The state has to double its investment in the transportation system to avoid losing about $1 billion in federal funding each year, and to maintain state roads, bridges, rail, and aviation systems.
The report, released November 10, finds Michigan is not in a position to take advantage of new federal funding because this is the last year that Michigan will be able to come up with enough state and local matching money.
The good news is the funding gap can be closed, the report says, by drawing in federal and local government resources as well as the private sector to boost transportation investments.
Raising user fees is recommended to accomplish these goals. The typical driver in the state pays 2.5¢ in road user fees for each mile driven, and a typical semi-truck contributes 8.33¢. Transit investment in the state is only one-half to one-tenth of the investment made by other populated, economically diverse states, the task force points out.
Members of the task force considered more than 100 ways to raise revenue for all modes of transportation in Michigan, including roads, public transit, and aviation, to stave off the looming funding shortfall.
Among proposals made by the task force are raising vehicle registration fees, eliminating registration discounts, raising the motor fuel tax of 19¢ per gallon, making taxes equal on diesel and gasoline, increasing the sales tax and dedicating the increase to transportation funding, directing all or part of the sales tax on fuels to transportation funding, and directing all or some of the Natural Resources Trust Fund revenue to roads.
These recommendations will now go to the state legislature and the governor for consideration.
Results of investing in the system include sustaining 126,000 Michigan jobs, attracting new business, and yielding nearly $15 billion in other economic benefits for all segments of the state economy. Citing an economic analysis by the University of Michigan, the report says for an average Michigan household, such investments would equate to an additional $2,000 per year in increased personal income and savings through reduced travel time, reduced vehicle maintenance, and increased safety.
The Transportation Funding Task Force was created in response to legislation that passed Michigan's Senate and House of Representatives with a bipartisan majority and was signed by the governor in December of last year.
The task force is made up of 13 members, nine representing manufacturing, labor, transportation, agriculture, aviation, commerce, public transit, tourism, and the general public, and four members of the legislature representing each legislative body and each party.









