Fixing Michigan Roads

Michigan's roadways and infrastructure system have historically suffered from deflated funding. However, as of late, an unprecedented diversion of funds is adding to an already-bleak picture for the Michigan Transportation Fund. Flat revenues, loopholes and an increasing administrative burden are preventing transportation dollars from keeping up with repair and maintenance needs.

Five years of flat revenues and rising costs have repeatedly forced county road agencies to cut services and curtail construction and road repairs. This year alone, there will be nearly $10 million less in funding for repair and maintenance of local roads. "We appreciate all that Governor Granholm and the Legislature have done to direct much-needed dollars to local roads, but their historic effort is only scratching the surface," said John D. Niemela, County Road Association of Michigan Director. "Michigan's prolonged economic slump and high gas prices continue to force local road agencies to do more with less, and many needs go unmet."

This bleak outlook is due in part to the diversion of money from the Michigan Transportation Fund to other departments. For example, the MTF has been tapped to fund grants to the Department of Treasury. In fact, while the House of Representatives reduced the grant to Treasury to $5 million, the State Senate approved raising this grant to $8.8 million--promoting only further diversions.

In addition, a loophole in the way vehicle registrations are collected takes needed funding away from the MTF. When drivers register a vehicle, they pay a registration fee that matches the type of vehicle they drive. But when drivers upgrade their vehicles they do not pay the difference in fees until their next birthday. This system routinely shortchanges road funding and is vulnerable to abuse when drivers transfer their registration to a different vehicle. In other words, a driver could register a compact car, transfer the registration to a truck or SUV, and not pay any more money until they renew their registration.

"Funding for local roads hasn't been increased since 1997, but the demand for new roads and road repairs has steadily increased," said Niemela. "Michigan roads have nearly $9 billion in unmet needs. Closing these loopholes would be a small first step in ending years of under funding our roads. We need to put every available dime into road construction and repair."

Viewpoint: Gasoline Costs Hurt Road Commissions Beyond the Pump

The effects of rising gas prices are being felt around the country in consumers' pocket books, and Michigan's county road agencies are no different.

Rising fuel costs have forced road commissions, just like consumers, to tighten their belts and stretch budgets even further. This difficult task is compounded because funding for road commissions has not increased for nearly a decade, while demands for new roads and road repairs continue to grow.

Road commissions rely on many petroleum-based products for daily operations, most notably diesel fuel to run trucks and equipment. This never-ending demand is unavoidable, as employees must be able to drive vehicles to plow, salt and repair the roads. Less driving would mean less maintenance and slower or incomplete repairs.

The increasing cost of materials used to repair and build roads is also a concern. Road agencies are reporting the cost of repaving with asphalt (a petroleum-based material) has increased as much as 50 percent since last year. The cost of steel has also increased dramatically, which affects the cost of equipment, trucks and building materials.

Road commissions simply cannot absorb these unprecedented increases under already tight budgets. The rising cost of materials has already caused delays of road projects that were slated to begin in the near future. Road commissions budget a certain amount for each project, sometimes several years out, and make their best guess at inflation and increases. The recent dramatic increases in the cost of materials means some no longer have enough money to pay for projects that were approved when material expenses were much lower.

Daily maintenance like filling potholes, plowing and salting must come first. Everything else, including resurfacing projects and other construction projects, could see delays from these increasing costs. Funding for local roads and bridges has been falling behind for five years. Recent spikes in the cost of petroleum-based products simply make a bad situation worse.

It is important that road commissions are properly funded to reflect rising costs and inflation. The last five years have shown flat revenue growth and road commissions have already been forced to make tough decisions on road projects.

Adequate funding that realistically accounts for growing costs is the only way to ensure road commissions remain capable of providing necessary services and maintaining the condition of our roads.

John D.Niemela

Director, County Road Association of Michigan