Michigans Transportation Funding Crisis.ppt

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Michigans Transportation Funding Crisis.ppt Powered By Docstoc
  Capital Conference

            March 4, 2009

   Director Kirk T. Steudle, P.E.
Michigan Department of Transportation
              Tough Times For
           Transportation Funding
    Declining gas tax revenues
    Declining state revenues for
    aviation, highways and transit
    Uncertain federal revenue
+ Increasing costs

=   Uncertainty

                                     Click to Continue
  Michigan is Experiencing a
 Transportation Funding Crisis
At current funding levels, the condition of
Michigan’s transportation infrastructure will decline.

                                            Click to Continue
Where Does the Money Come From?
 Michigan’s primary sources of transportation
  funding are the state gas tax and vehicle
  registration fees.
                              - Michigan's gas tax is
                              19 cents per gallon.
                              Michigan's gas tax has not
                              been increased since 1997.

                              - Registration fees have been
                              declining due to motorists
                              purchasing fewer new vehicles

                                           Click to Continue
   What’s the Average Cost?

 Replacing a bridge deck - $1.7 million             Resurfacing asphalt - $800,000
             (5-lane deck)                                 (2 lanes for one mile)

        Winter maintenance –                 Urban Transit Bus – $300,000 to $500,000
$3,000 per lane mile (plowing and salting)
Michigan’s Transportation System Is
    Important on a Global Scale

             27% of North American land-based trade goes
                           through Michigan

            37% of North American rail trade moves through

            Detroit Metropolitan Wayne County Airport (DTW)
              is the 10th-busiest airport in North America and
                     the 20th-busiest airport in the world

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          Where Do We Rank?

 Since the 1960s,
Michigan has been
in the bottom 10
states for state and
local transportation

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Our Funding Doesn't Go as Far
        as It Used To
Due to Inflation, the 19 cent
state gas tax is now only
worth 14.7 cents.               State Gas Tax has dropped in
                                        value 22.6%

                                           Click to Continue
 Gas Tax Revenue Is No Longer
          the Answer
New fuel efficient vehicles and hybrids have further
  cut gas tax revenue.
Michigan gas tax revenue has decreased $100
  million in the past five years.

                                           Click to Continue
     Road Construction Costs
          Keep Growing
Asphalt costs are up 32.4%
from 2002 to 2006.

                             Concrete costs are up 21%
                             from 2002 to 2006.

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  Older Roads and Bridges Require
         More Maintenance
Michigan roads and bridges are
aging, and carry higher
volumes of traffic than all but
eight other states.

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 Winter Weather Is Harsh on
         Our Roads
Roads in Michigan are exposed to severe weather
and harsh freeze/thaw cycles.

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      Positive Gains Made in
    Road Conditions Are at Risk
In 1996, only 64% of state
   highways were in good
In 2007, Michigan’s goal
   of 90% of all state
   highways in good
   condition was
By 2014, these gains will
   be lost.

                             Click to Continue
     How Does This Affect Me?

Time lost in traffic, wasted
  fuel, and crashes costs
  Michigan drivers $7 billion
  each year.

That’s $1,671 per driver.

                                Click to Continue
  Jobs Would Be Lost in All
   Sectors of the Economy
      At the current funding level, Michigan will lose jobs.
       The decline in buying power of MDOT's funding
from 2006 to 2010 would mean a loss of more than 12,000 jobs.

                                                   Click to Continue
New Economic Recovery Package:
         Not the Cure
   President Obama signed a
    one-time economic recovery
    package totaling $48 B for
   Package = roughly 1 year’s
    worth of typical federal
   Monies would not support
    maintenance and other
    services                     Not the Cure For Michigan’s
                                 Transportation Funding Ills
   Recovery package funding
    does not solve long-term
    transportation funding
2009-2013 Transportation Revenues
                                               MDOT Highway and Maintenance Program
                                                        State Revenue Shortfall and Federal-Aid Lost


            $1,600              $630

            $1,200                                                                                                         $111    $124
                              $1,265*                       $1,239


             $800                                                                                                          $629
                                                                                            $576                                   $700

                                                                                           $477**                         $524**   $418**

                                2009                           2010           Year           2011                           2012   2013

                 Program Total with Routine Maintenance                                                        Federal Aid Lost
                 State Revenue Shortfall                                                                       Federal Stimulus
                     * 2009 Announced Highw ay and Maintenance Capital Program
                     ** Resulting Program Amount (w ith declining state revenues and inability to match available federal aid)

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