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Michigan Department of Transportation
Michigan’s Infrastructure Needs and Funding
2013
Transportation Is The Backbone of Michigan’s Economy
35% of US/Canada trade flows through Michigan $520 billion in freight is moved each year on Michigan’s highways, rail and water ports Trucking accounts for 67% of all freight tonnage moved in Michigan
2
Operation of bus transit systems contribute an estimated $740 million to the economy each year
Passenger rail is expected to generate between $1.0-1.5 billion in net economic benefit annually
Aviation contributes more than $20 billion/year
80% of Michigan tourism isauto-based - $17.7 billion in total visitor spending in 2011
Transportation Is The Backbone of Michigan’s Economy
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AssetAsset Management
Innovation and Efficiency
• MDOT has saved an average of $63M/year since 2009 on efficiencies & innovations. Some examples include:
– $48M: staff reductions & closed facilities
– $71M in one-time savings by bonding and process improvements
– $4M/year using electronic signatures for construction documents
– $22M in 2012 & 2013 by partnering with businesses & local governments & improving maintenance practices
– $4M/year in energy savings
$160
$180
$305
$326
$362
$444
$410
$518
$521
$610
$658
$624
$572
$667
$551
$442
$471
64%
67%
69%
73%
71%
75% 75%
78%
82%
86%
89%
92% 92%91%
91%
89%
87%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Per
cen
t P
avem
ent
in G
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Fai
r C
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Inve
stm
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Investment Condition (percent good and fair) 6
Trunkline Pavement Condition has Peaked
Transportation Funding Roads and Bridges
Federal funds: $1 billion Includes $250 m to local agencies
State motor fuel taxes: $946 million State registration fees: $876 million
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8
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Statewide Average Salt Costs
$20.00$25.00$30.00$35.00$40.00$45.00$50.00$55.00$60.00$65.00
Statewide Average Salt CostsAverage Cost Per Ton
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Time to Act
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“Michigan is moving from underinvesting in transportation, to disinvesting
in transportation.” 2008, Transportation Funding Task
Force
“Michigan is moving from underinvesting in transportation, to disinvesting
in transportation.” 2008, Transportation Funding Task
Force
“Michigan’s roads continue to
deteriorate at an increasingly
rapid rate…” 2010, Transportation
Asset Management Council Report
“Michigan’s roads continue to
deteriorate at an increasingly
rapid rate…” 2010, Transportation
Asset Management Council Report
“If we are going to
reinvent Michigan’s
economy, we have to
reinvest in
Michigan’s
infrastructure.”
2011, Special
Message on
Infrastructure
“If we are going to
reinvent Michigan’s
economy, we have to
reinvest in
Michigan’s
infrastructure.”
2011, Special
Message on
Infrastructure
“Investments in infrastructure will grow the economy.” 2012, Business Leaders for Michigan
“Investments in infrastructure will grow the economy.” 2012, Business Leaders for Michigan
“The Pure Michigan campaign is
driving thousands of families to visit
our state, but if our roads and
bridges aren’t repaired, many won’t
be coming back.” 2012, Michigan
Lodging and Tourism Association
“The Pure Michigan campaign is
driving thousands of families to visit
our state, but if our roads and
bridges aren’t repaired, many won’t
be coming back.” 2012, Michigan
Lodging and Tourism Association
“You get what you pay for.” 2013, Michigan Farm Bureau
“You get what you pay for.” 2013, Michigan Farm Bureau
“Time is not on our side…The time to address this
problem is now.” 2012, Michigan Roads Crisis report
by House Transportation Working Group
“Time is not on our side…The time to address this
problem is now.” 2012, Michigan Roads Crisis report
by House Transportation Working Group
“Investing money in our roads and bridges today saves money in the long run..” 2013, Gov. Rick Snyder
“Investing money in our roads and bridges today saves money in the long run..” 2013, Gov. Rick Snyder
“…families will save on vehicle repair costs, our state will save $13 billion over the long run…we will save 100 lives each year… what’s more, we’ll create over 12,000 jobs…” 2013, Gov. Rick Snyder
“…families will save on vehicle repair costs, our state will save $13 billion over the long run…we will save 100 lives each year… what’s more, we’ll create over 12,000 jobs…” 2013, Gov. Rick Snyder
“…creating a disincentive for big employers, especially those who rely on highway infrastructure to do business, to locate here..” 2008, Kalamazoo Gazette
“…creating a disincentive for big employers, especially those who rely on highway infrastructure to do business, to locate here..” 2008, Kalamazoo Gazette
“If we are going to reinvent Michigan’s
economy, we have to reinvest in Michigan’s infrastructure.” 2011, Special
Message on Infrastructure
“If we are going to reinvent Michigan’s
economy, we have to reinvest in Michigan’s infrastructure.” 2011, Special
Message on Infrastructure
“…Michigan had the eighth worst road system in the nation based on overall performance. Grinding all of our roads back into the stone age is not an acceptable alternative.“ 2009, Muskegon Chronicle
“…Michigan had the eighth worst road system in the nation based on overall performance. Grinding all of our roads back into the stone age is not an acceptable alternative.“ 2009, Muskegon Chronicle
Raising taxes isn't easy in a
bad economy, but this is one
case where, if the money is
properly managed, it would
offer a worthwhile return on
the investment...” 2009,
Detroit News
Raising taxes isn't easy in a
bad economy, but this is one
case where, if the money is
properly managed, it would
offer a worthwhile return on
the investment...” 2009,
Detroit News
“Transportation infrastructure
must become a priority. …”
2011, Lansing State Journal
Editorial
“Transportation infrastructure
must become a priority. …”
2011, Lansing State Journal
Editorial
Conditions are Getting Worse
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Pay Now or Pay Later
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The Cost of Doing Nothing
• Costs of an inadequate system– $11.6 billion annually – lost time, wasted fuel, crashes, etc.
• $3,014 annually per driver
– $370 per driver per year for auto repairs due to poor roads
• Safety impacts of an inadequate system– Total crashes in 2011: 284,049– Total cost of crashes : $8.25 billion– Total fatalities: 889– Total injuries: 71,796
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Benefits of Acting Now
• The economic impacts in the first two years:– 12,000 jobs each year– $1.598 B in personal income– $2.92 B in Gross State Product
• In the next 10 years, this $1.2 billion/year investment will generate:– Over $10 billion in real personal income– More than $24 billion in Gross State Product
• PLUS, better roads & transit, greater efficiency, improved safety 15
STATE STATE PROFILE (thousands) STATE INVESTMENT ALLOCATION (thousands)
Total Funding Funding PerFunding Per Pop. Lane Mile
MICHIGAN 9,834 7,822 97,567,000 257 $1,709,199 $174 $6,651Illinois 12,831 10,789 105,788,000 293 $3,017,527 $235 $10,299Indiana 6,484 5,698 75,761,000 200 $1,215,322 $187 $6,077Minnesota 5,304 4,848 56,632,000 284 $1,672,190 $315 $5,888Ohio 11,537 9,800 111,836,000 262 $2,706,474 $235 $10,330Wisconsin 5,687 4,968 59,420,000 237 $1,315,897 $231 $5,552
Registered Vehicles Annual VMTPopulation
Lane Miles
REGIONAL COMPARISON
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Impact Could Be Felt in 2013
• If action is swift, work can begin this summer– If not, real progress will be delayed to next summer
• Transportation agencies and contractors are eager to do the work– MDOT’s program and lettings are 1/3 less in 2013 than
what they were 4-5 years ago ($650M vs. $930M)
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Questions?
“Providing the highest quality integrated transportation services for
economic benefit and improved quality of life.”
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