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Michigan’s Infrastructure Needs and Funding 2013

This report highlights the importance of transportation infrastructure in Michigan's economy, the current state of the infrastructure, and the need for increased funding. It provides data on the economic benefits of investing in infrastructure, the cost of not taking action, and compares Michigan's infrastructure to other regions. The report also emphasizes the urgency of addressing this issue and the potential impact of delaying necessary improvements.

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Michigan’s Infrastructure Needs and Funding 2013

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  1. Michigan’s Infrastructure Needs and Funding2013 Michigan Department of Transportation

  2. Transportation Is The Backbone of Michigan’s Economy • 35% of US/Canada trade flows through Michigan • $520 billion in freight is moved each year on Michigan’s highways, rail and water ports • Trucking accounts for 67% of all freight tonnage moved in Michigan

  3. Transportation Is The Backbone of Michigan’s Economy • Operation of bus transit systems contribute an estimated $740 million to the economy each year • Passenger rail is expected to generate between $1.0-1.5 billion in net economic benefit annually • Aviation contributes more than $20 billion/year • 80% of Michigan tourism isauto-based - $17.7 billion in total visitor spending in 2011

  4. AssetManagement

  5. Innovation and Efficiency • MDOT has saved an average of $63M/year since 2009 on efficiencies & innovations. Some examples include: • $48M: staff reductions & closed facilities • $71M in one-time savings by bonding and process improvements • $4M/year using electronic signatures for construction documents • $22M in 2012 & 2013 by partnering with businesses & local governments & improving maintenance practices • $4M/year in energy savings

  6. Trunkline Pavement Condition has Peaked

  7. Transportation Funding • Roads and Bridges • Federal funds: $1 billion • Includes $250 m to local agencies • State motor fuel taxes: $946 million • State registration fees: $876 million STATE MOTOR FUEL TAX $946M FEDERAL FUNDS $1B STATE REGISTRATION FEES $876M

  8. Statewide Average Salt Costs

  9. “…creating a disincentive for big employers, especially those who rely on highway infrastructure to do business, to locate here..” 2008, Kalamazoo Gazette “Michigan is moving from underinvesting in transportation, to disinvesting in transportation.” 2008, Transportation Funding Task Force Time to Act “If we are going to reinvent Michigan’s economy, we have to reinvest in Michigan’s infrastructure.” 2011, Special Message on Infrastructure “You get what you pay for.” 2013,Michigan Farm Bureau “Michigan’s roads continue to deteriorate at an increasingly rapid rate…” 2010, Transportation Asset Management Council Report “Investing money in our roads and bridges today saves money in the long run..” 2013, Gov. Rick Snyder “The Pure Michigan campaign is driving thousands of families to visit our state, but if our roads and bridges aren’t repaired, many won’t be coming back.” 2012, Michigan Lodging and Tourism Association “…Michigan had the eighth worst road system in the nation based on overall performance. Grinding all of our roads back into the stone age is not an acceptable alternative.“ 2009, Muskegon Chronicle “Transportation infrastructure must become a priority. …” 2011, Lansing State Journal Editorial Raising taxes isn't easy in a bad economy, but this is one case where, if the money is properly managed, it would offer a worthwhile return on the investment...” 2009, Detroit News “Investments in infrastructure will grow the economy.” 2012, Business Leaders for Michigan “If we are going to reinvent Michigan’s economy, we have to reinvest in Michigan’s infrastructure.” 2011, Special Message on Infrastructure “…families will save on vehicle repair costs, our state will save $13 billion over the long run…we will save 100 lives each year… what’s more, we’ll create over 12,000 jobs…” 2013, Gov. Rick Snyder “Time is not on our side…The time to address this problem is now.” 2012, Michigan Roads Crisis report by House Transportation Working Group

  10. Conditions are Getting Worse

  11. Pay Now or Pay Later

  12. The Cost of Doing Nothing • Costs of an inadequate system • $11.6 billion annually – lost time, wasted fuel, crashes, etc. • $3,014 annually per driver • $370 per driver per year for auto repairs due to poor roads • Safety impacts of an inadequate system • Total crashes in 2011: 284,049 • Total cost of crashes : $8.25 billion • Total fatalities: 889 • Total injuries: 71,796

  13. Benefits of Acting Now • The economic impacts in the first two years: • 12,000 jobs each year • $1.598 B in personal income • $2.92 B in Gross State Product • In the next 10 years, this $1.2 billion/year investment will generate: • Over $10 billion in real personal income • More than $24 billion in Gross State Product • PLUS, better roads & transit, greater efficiency, improved safety

  14. RegionalComparison

  15. Impact Could Be Felt in 2013 • If action is swift, work can begin this summer • If not, real progress will be delayed to next summer • Transportation agencies and contractors are eager to do the work • MDOT’s program and lettings are 1/3 less in 2013 than what they were 4-5 years ago ($650M vs. $930M)

  16. Questions? “Providing the highest quality integrated transportation services for economic benefit and improved quality of life.”

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