The U.S. House passed a $154 billion jobs bill this week that could potentially provide more than $800 million dollars for federal-aid eligible transportation projects in Michigan in 2010.

The “Jobs for Main Street Act,” which now moves to the U.S. Senate, invests more than $27 billion in highways and mass transit to help stimulate the national economy. Although a state-by-state breakdown is not yet available, the investment levels are nearly identical to the American Recovery and Reinvestment Act (ARRA), which provided $850 million to Michigan roads and bridges.

In a surprising twist, the legislation exempts states from the required match for receiving full federal aid.  Michigan stands to lose $600 million a year because of its inability to match federal aid.

“While the news from Washington is encouraging, and investment in infrastructure is a proven job creator, state policymakers must still fix the long-term funding problem that has Michigan drivers hitting potholes and sliding on snow-covered roadways,” 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.

But while the extra money is welcomed, it doesn’t come close to meeting the state’s needs.

“We applaud the actions of Congress,” Nystrom said. “But the proposed money from Washington would provide only about a third of what our state needs annually, so it’s really just a small down payment. And, unfortunately, it does nothing for us on the local level.”

The money can be spent only on the federal aid system, meaning a majority of Michigan roads , including local roads, which have the greatest needs, would not see any new dollars. Federal road construction dollars also cannot be used for maintenance operations, such as snow removal and pothole repair.

Even with the additional short-term federal increases, pavement conditions in Michigan will continue to decline, Nystrom said.  A report issued last year by the bipartisan Transportation Funding Task Force (TF2) recommends an increase in transportation investment of $3.5 billion annually to overcome a decade of deterioration and to maintain the current road network in good condition.  

The Michigan Transportation Team, a statewide coalition supporting increased investment in transportation infrastructure, reports that the state’s primary source of road funding, the state’s gas tax, is expected to bring in $110 million less this year than in 2002, as vehicles have become more fuel efficient and motorists have changed their driving habits.

The federal legislation is not expected to be considered by the U.S. Senate until early next year.

“State policymakers cannot view this as a solution to Michigan’s transportation funding needs,” said Nystrom. “Michigan legislators must get to work so we can fix our roads permanently and put people back to work.”