Shutting down road projects temporarily until policymakers can agree on the entire state budget would cost Michigan taxpayers an estimated $1 million. Those representing the road building industry are now urging policymakers to pass the transportation budget before the other budgets areas because those dollars are not tied to the general fund revenues being debated at the state capitol.
According to the Michigan Infrastructure and Transportation Association (MITA), the transportation budget is paid for with gas taxes and vehicle registration fees that are constitutionally required to be spent on transportation. They cannot be used to prop up other parts of the state budget. Meanwhile, state contractors must begin shutdown procedures several days in advance of a government shutdown in order to secure construction zones and those procedures will start in the next few days.
“State policymakers are caught in a game of chicken while holding transportation dollars hostage,” said Mike Nystrom, vice president of government and public relations for the Michigan Infrastructure and Transportation Association (MITA), and co-chair of the Michigan Transportation Team (MTT). “In the next few days, legislators will be asking taxpayers to fork over $1 million in road money to pay for their inaction and indecision. Spending money to implement a statewide shutdown in our work zones hinders our ability to pay for new roads and is an affront to hardworking taxpayers. Legislators need to pass MDOT’s budget now.”
With a looming September 30 deadline, the Michigan Department of Transportation (MDOT) budget continues in limbo along with the rest of the state budget. Without a budget in place, state employees cannot be authorized to work. The state contract requires a 30-day notice before union employees can be laid off.
In 2007, Michigan was unable to reach a budget deal, costing the state almost $700,000 for a state shutdown of road projects that lasted only five hours in the middle of the night.
“Lawmakers have no reason not to pass the MDOT budget to ensure road projects continue,” Nystrom said. “Unlike our situation two years ago, we have dozens of stimulus funded projects that won’t move forward if we shutdown, putting our state further in the hole.”
With no shortage of road and bridge problems, road agencies across the state continue to face an ever-increasing shortfall of funds. The bipartisan Transportation Funding Task Force (TF2) recommends an increase of $3.5 billion annually just to achieve a “good” level of investment.
“We cannot ignore our roads any longer, we need our legislators to step up and take action,” Nystrom said.
MITA represents a broad spectrum of highway construction companies and suppliers that help build a better Michigan infrastructure from the bottom up. They have been a leading voice for securing adequate transportation funding at the federal and state levels. For more information, visit
www.mi-ita.com or
www.drivemi.org.