Yesterday, there was a press conference at the Capitol in which Dan Gilmartin (MML CEO & Executive Director) called upon the Legislature to ACT NOW!  It is time for the Legislature to ACT NOW to adequately fund Michigan’s transportation and transit systems.  It is time to ACT NOW to enact necessary reforms and efficiencies so that all road and transit agencies will work together in a cooperative way.  It is time to ACT NOW to reverse the declining funding for our roads, bridges, airports, and transit systems (to the tune of over $600 million over the last two years).

It was one of the most attended press conferences I’ve seen in my time working in the Capitol and it was great to see that we are getting support from a number of Legislators.  We need to thank State Representatives Pam Byrnes (D-Saline), Wayne Schmidt (R-Traverse City), Lee Gonzales (D-Flint), Matthew Lori (R-Constantine). Marie Donigan (D-Royal Oak), Dick Ball (R-Laingsburg), and Andrew Kandrevas (D-Southgate) for being sponsors of some of the bills in this package.

More bills are expected to be introduced next week and we’ll keep you posted on those.  In the meantime, please contact your Legislator and ask them to ACT NOW for transportation funding!

Today I was a part of a meeting with 65 other people (including representatives from the Michigan Chamber, the AFL-CIO, the County Road Association, and others) to hear about some specifics on a proposal to increase transportation funding.  Going into the meeting, I had the feeling that this was going to be the same ole same ole with nothing new to report.  I’m glad to say that I was wrong.

The Governor’s staff give us a nine page document incorporating 13 specific bills that have been requested and received that will increase transportation funding by 90% over the next five year (from $3.1 billion to approximately $5.89 billion from state/local/federal sources).  Here’s breakdown of the specific bills:

1. A bill to create public-private partnerships(P3).  This would allow MDOT to enter into P3’s to build and operate transportation projects and could be a way to create toll roads in Michigan where necessary.
2. A bill to expand the Asset Management program to all public roads and transit programs.  Asset Management will provide consistency among long term agency plans and help us at the local level extend the transportation dollar to its maximum.
3. A bill to reward counties for planning multi-county corridors. - This will provide extra state aid to counties that jointly plan and build projects that function as multi-county through routes, lessening the amount needed to match on some federally funded projects.
4. A bill to establish a regionalization planing and grant program for transit projects.  This will allow for a customized approach for transit agencies to provide a coordinated effort to provide services for those areas that need/want transit.
5. A bill that will provide a New Transit Service Program.  This program could be funded with up to $50 million/year to support new rapid/regional transit services in the state.
6. A bill that will limit the amount of funds the Secretary of State receive from transportation collections and allow the Michigan Transportation Fund (MTF) to receive tolls as well as gas tax/vehicle registrations.
7. A bill to enable Tax Increment Financing Authorities for any transportation project.  This is what we tried to do with HB 6114 last year.
8. A bill to enable Private Investment Infrastructure (PIIF) Option.  This is similar to a TIFA but allows private investors to fund all or part of a transportation projects.
9. A bill allowing for a $25 local option fee to be placed on drivers licenses if approved by a county-wide vote for transportation projects.
10. A bill to implement a wholesale gas tax that begins on 1/1/10 and will cap annual gas tax increases by 5.5. cents in the first year and 3 cents each after that up to a maximum of a 90% increase in the gas tax over 7 years.
11. A bill to implement a wholesale diesel tax the same as the aforementioned bill.
12. A bill to increase vehicle registrations by 10% the first year and 20% a year for the next 4 years; and increase commercial vehicle registrations by 20% over the next 4 years.
13. A bill to increase the aviation fuel tax from 3 cents to 2 1/2 percent of the wholesale price.

The full transportation funding package can be found here: TF2 Transportation Funding Legislation.

Despite this being complicated, there is at least a target now that we can shoot people towards.  I’m looking forward to working on this and to having it enacted before the Legislature leaves for the summer break.  Please let me know if you have any questions on this.

We need your help. The Detroit News is running a poll on the wholesale gas tax change that Governor Jennifer Granholm mentioned last week.

Cast your vote and let people know how important it is that we fund our transportation and transit systems properly!

http://apps.detnews.com/apps/forums/newstalk/lettersindex.php?topic=gastax0305

Michigan Speaker Andy Dillion recently talked with the Michigan Municipal League about what it will take to increase support for transportation and transit in Michigan.  It’s clear that he understands the problem.

Is this the future of Michigan's Transportation System?

In my role at the Michigan Municipal League, I receive a copy of the “Michigan Transportation Fund and Local Road Program Statement of Comparative Receipts and Distributions”.

I know what you’re thinking. “Very exciting stuff, Dave. Really it is!”

But I wanted to share some information with you, so that you’ll keep it in mind as you dodge the multiple potholes that are out there.

Total Motor Fuel Taxes collected for the period 1/1/08 - 12/31/08 was $948.1 million. This is down 4.8% from the previous year.

• Total amount of Michigan Transportation Funds (MTF) distributed to the 533 Michigan cities and villages in 2008 was $332.2 million. This is down 3.6% from the previous year
• Total amount of MTF distributed to the 83 Michigan counties in 2008 was $581.1 million. This is down 3.6% from the previous year.
• Total amount of money made available for the Comprehensive Transportation Fund (CTF) - which supports all public transit operations in the state (73 agencies) for 2007 was $165.7 million.  This is down 3.4% from the previous year.

Keep in mind that the amount given to cities and counties is the entire amount provided to take care of potholes, to resurface roads, to build new roads, to plow the roads, to salt the roads, to take care of stop lights, street signs, patching, repairing, etc.

Also keep in mind that it costs about $3,000/road mile to plow the snow during an average Michigan winter (per MDOT). It also can cost anywhere from $300,000 to $1 million to build a road (depending on how wide it is and the terrain it’s on).

Like I said to one of friends earlier this year, as this winter continues, our roads are only going to get worse (very very worse) before they get better.

I was sent a great article today, written by former Michigan State Senator David Honigman.  He suggests that, much like buildings that ignored with windows that are broken, our transportation system is sending negative signals about how we truly feel about the possibility of our economic turnaround.

It’s a great read and one that gets you thinking.

The Signaling Function of Transportation Infrastructure: the Theory of the Broken Window

Folks, it’s time we act! We need to contact our State Representatives because legislation that would raise $1.5 billion a year in new funding for transportation and transit depends on it!  If the House of Reps. doesn’t pass this legislation next week, then they will never get to it because it’ll be the end of the 94th Legislative Session.  These bills would have to start from scratch and who knows how long it could take to get transit funding for our communities. This is THE opportunity of 2008 … NOW BEFORE THEY GO HOME FOR GOOD!

We’ve set up two websites that will help you contact our State Reps:

To Call Lawmakers (talking points and calling script available here)

To Email Lawmakers (personalize our sample letter and email directly from this site)

Any increase in transportation funding will also increase funding for transit operations.  If enacted, mass transit operations in Michigan will receive the necessary funding to support light rail projects, commuter rail projects, and new bus-rapid transit projects in cities statewide.

Please call, email or personally visit House members and tell them it’s urgent that they pass the transportation investment plan.

Between the legislative Thanksgiving break and the start-up of the 2008 “Lame Duck” session, folks at the MML have been busy putting together a press conference about Michigan’s pressing transportation needs.  Media outlets looking to cover the federal economic stimulus proposal expected out of D.C. were all ears at today’s press conference where several Michigan communities urged the state Legislature to approve measures that would boost money for transportation improvements and keep Michigan in the running for federal funds.

Heck … even the Chicago Tribune picked up on it already:

http://www.chicagotribune.com/news/chi-ap-mi-transportationspe,0,7564573.story

And here’s the press release that MML sent out:

http://www.mml.org/pdf/mml_news_release12-3.pdf

Here’s the latest release from the MML regarding the Transportation Funding Task Force (TF2)

Transportation Rescue Plan Would Generate Jobs, Investments

LANSING, Mich. — Michigan would gain thousands of new jobs and billions in new economic development and redevelopment by implementing recommendations of a new statewide transportation system report released today by a blue ribbon panel of business, labor and government leaders, the Michigan Municipal League (MML) said.

The 62 page report from the Transportation Funding Task Force (found at http://www.michigan.gov/mdot/0,1607,7-151-9623_31969-202856–,00.html) presents a frank assessment of Michigan’s neglected and crumbling transportation system, including roads and bridges, public transit and aviation. The task force recommends reforms to make transit operations more efficient and cost effective, and significant new investments in public transit and roads to generate jobs and economic development.

“The broad conclusion of the report is spot on: Michigan’s economy can prosper again if we make significant public and private sector investments in public transit and roads and bridges,” said MML Executive Director and CEO Dan Gilmartin. “The converse is also true. Michigan simply will not prosper again if we continue to disinvest in our roads and fail to develop transit alternatives to driving including adequate bus systems, light rail and commuter rail. We need the Governor and our legislative leaders to join with the private sector, citizens, and the federal government to make transportation an economic development priority.”

Gilmartin noted new public transit projects are moving forward in Grand Rapids, Detroit, Ann Arbor and Howell. The recommendations in the task force report and legislation pending in Lansing — including House Bill 6114 — would provide foundations to support transit jobs and investments in the future, he said.

“These projects represent a terrific start but still fall short of the level of rapid transit system development Michigan desperately needs to create jobs, generate new development and attract young, college educated people to live in our communities,” Gilmartin said. “Michigan simply must get to the level of investment recommended in the task force report, or we will continue to watch from the sidelines as urban areas in other states thrive as a result of their rapid transit systems.”

The Transportation Funding Task Force was created by Governor Jennifer Granholm and the Michigan Legislature in 2007. Its 13 members include leaders of the Michigan Chamber of Commerce, organized labor, state and local governments, both major political parties, public transit, aviation, tourism, and the general public.

After months of work and public meetings across the state, the task force report concludes that: “The consequences to Michigan if action is not taken to address the need for increased transportation investment are dire indeed.” Michigan will lose up to $1 billion in federal funds each year, “putting more than 17,000 jobs at risk.”

Increasing transportation investment to a “good level” will “sustain 126,000 Michigan jobs, attract new business, and open new global markets for Michigan products and services. It will yield nearly $15 billion in other economic benefits for all sectors of the Michigan economy.”

For mass transit, the report says a “good investment level” will allow agencies to replace aging bus fleets with greener and more fuel-efficient vehicles. “It will enhance convenience and choice in passenger transportation and allow implementation of long-overdue travel alternatives, such as commuter rail and light rail …. It will provide urban travel options that make Michigan cities more attractive to business and residents.”

Gilmartin noted cities across the nation that have built rapid and mass transit systems in the past 15 years — Dallas, Minneapolis, Denver, Charlotte, Portland — have gained thousands of new jobs and billions of dollars in new private sector development, including residential housing units, retail stores, restaurants, entertainment venues and other cultural attractions, grocery stores and shopping centers, and much more.

“Investing in roads and public transit is a proven economic development policy that other cities in other states have embraced,” he said. “Sadly, Michigan has not and is missing out on the many economic, environmental and social benefits of transit.”

MML, along with many business, labor, government and citizen organizations, will be seeking new transit and transportation policies and investments in Michigan in the coming months and years.

The Michigan Transportation and Infrastructure Association (MITA) recently release a list of the worst roads in Michigan.  Their list has been getting some play in the press, as you will see from the following link to the Kalamazoo Gazette: http://www.mlive.com/kzgazette/opinion/index.ssf/2008/10/the_state_of_michigans_roads_p.html

I think an important aspect to remember is that not only is funding needed for roads and bridges, but it is also needed for transit.  MML has given the following talking points to our members, and we hope that others will carry these points to the State Legislature as well:

• State funding for transportation remains the responsibility of the Legislature.  Our legislators are responsible for the quality of all Michigan roads.  They must realize the importance of this crucial funding initiative in order to maintain and improve our roads, bridges, and transit systems, to keep jobs in Michigan, and to get the economy back on track.
• In FY 2008-09 municipalities received $14 million dollars less than the previous year due to decreasing transportation funding.
• The Legislature redirected more than $13 million from the Transportation Economic Development Fund in the past two years to solve general fund budget issues.  These funds could have the improved operational strength of many of our congested roads in the state.
• Michigan will lose nearly $1 billion in federal road funds annually between 2010 and 2015 – all because we cannot meet the federal matching requirements for those funds.
• Michigan will lose nearly $130 million in federal transit programming dollars because of our inability to provide matching federal dollars for these new start programs.
• Our state is losing more than 12, 250 jobs between 2006 and 2009 because of the drop in funding for our state transportation program.
• A total of 23,000 road lane miles will need to be repaired or replaced by 2015, while the expected state transportation budget will pay for only 876 lane miles (3.8 percent).
• We must invest in our transportation system – not only to help save lives, but also to employ thousands of Michigan residents and to provide the critical infrastructure upon which our economy relies.