What Happened: A Michigan Infrastructure & Transportation Association (MITA) report released March 7 finds the state has $3.9 billion in annual unfunded road and bridge infrastructure needs.
Why it Matters: Transportation projects in Michigan are primarily funded through motor fuel taxes, vehicle registration fees, and general fund transfers. The Michigan Department of Transportation (MDOT) projects total revenue will decline by roughly $1 billion from Fiscal Year (FY) 2022 to FY 2026. Using this information, MITA worked with Public Sector Consultants (PSC) to develop a model that calculated needs by looking at the per lane mile costs of different road maintenance techniques to determine the total cost of upkeep to maximize the life of a road or bridge. To meet these needs, the report suggests several funding solutions including a motor fuel tax increase, increasing the state sales tax and dedicating a portion of revenues to transportation, and implementing a vehicle miles traveled (VMT) tax.
In May 2022 MITA conducted a survey where over 90 percent of Michigan voters viewed the state of roads and bridges negatively. In that same survey, 41 percent of respondents agreed “it will be necessary to raise state taxes, fees, or both” to increase transportation and infrastructure investment.