FOR IMMEDIATE RELEASE
CONTACT: Mike Nystrom, Vice President of Government and Public Relations, MITA
517-347-8336 (Office)
517-896-1493 (Cell)

An economic model used by the University of Michigan concludes that Michigan will lose an estimated 25,000 jobs from 2006-2014 due to a dramatically declining MDOT road and bridge program.

A series of recent U of M studies found that Michigan’s road and bridge funding is in a steep decline that drastically impacts employment in the state. In 2006, MDOT’s investment in Michigan’s highway infrastructure created 30,824 jobs across all sectors of the economy. However, those jobs will drop by nearly 24,000 jobs to only 5,944 total jobs by 2014, due to plummeting state revenues. More than 7,000 jobs will be lost in 2010 alone and another 9,000 more will be lost in 2011, when the state is scheduled to lose almost $600 million in federal aid, according to further analysis by MDOT.

“This news is devastating,” said Mike Nystrom, vice president of government and public relations for the Michigan Infrastructure and Transportation Association (MITA), co-chair of the Michigan Transportation Team (MTT). “There will be tens of thousands of people without work because state policymakers are neglecting our state’s infrastructure.”

The growing shortfall of funds, an estimated $3 billion annually, has forced MDOT to postpone and/or eliminate much needed transportation projects. In June, MDOT was forced to postpone more than 137 road and bridge projects across the state from their five-year plan.

“It’s hard to comprehend a winning economic strategy for Michigan when we allow our state’s infrastructure to crumble and 25,000 jobs to disappear with it,” said Nystrom. “Job providers in agriculture, tourism and manufacturing all rely heavily on an efficient transportation network. Economic growth and recovery will not happen in Michigan if we continue to stand by while our infrastructure suffers decades of neglect.”

The study shows a steady trend of job losses in Michigan associated with declining transportation revenue, with an increase associated with one-time American Recovery and Reinvestment Act (ARRA) stimulus money in 2009.

The University of Michigan has completed economic impact studies for MDOT in 2006, 2007 and 2009. Their economic impact model assesses both Michigan’s overall economy and its major industry sectors. The economic impacts are measured in terms of various labor market indicators, changes in compensation and personal income, Gross State Product, and spin-off benefits as generated by the REMI (Regional Economic Models, Inc.) model of the Michigan economy.

The August 2009 study (attached) stated, “A well-maintained and efficient transportation system provides the backbone for all economic activity within Michigan.”

Michigan residents can voice their concerns about road funding by calling a toll-free number, 888-719-3087, set up by MTT. Callers simply enter their five-digit ZIP code to be connected, at no cost to them, with their legislator.

MTT is a broad-based, bipartisan partnership of business, labor, local government, associations and citizens with the common goal of improving Michigan’s transportation infrastructure. The DriveMI campaign is committed to promoting the development and maintenance of a safe, convenient and efficient transportation network that serves the public, private and economic development needs of Michigan. Please visit www.drivemi.org for more information on transportation funding or follow them on twitter @drivemi or YouTube at www.youtube.com/user/FixMIRoads.