The Michigan Transportation Funding Task Force (TF2) recently stated that Michigan must double our transportation investments if we hope to achieve “good” transportation systems and that we need even greater investment to do better than that.
The Michigan Infrastructure and Transportation Association developed a policy proposal that takes critical steps towards achieving the TF2’s recommendations. While it doesn’t fully double transportation funding, it provides a vitally needed increase in funding for roads, bridges, buses, trains, bike paths and more.
This proposal includes getting rid of Michigan’s gas and diesel taxes and changing to an 18% wholesale tax, which would decrease to 10-13% when gas prices rise. It also includes a 50% increase in vehicle registration fees and other funding reforms. These changes would add a much needed $1.5 billion to Michigan’s transportation network, including $150 million for public transit.
In addition to terrible potholes and crumbling bridges, public transit is also severely struggling in Michigan:
- Right now, more and more people want to ride the bus, yet local bus agencies cannot provide the service people are demanding. Some buses are jammed full and cannot pick people up. Many agencies are cutting back service because state transit funding has not kept up with costs, rider demands, or even inflation.
- Many bus agencies are running old buses longer than their suggested lifespan because the state stopped providing the matching funds for new bus purchases. Many agencies would like to buy cleaner, more fuel-efficient hybrid buses, but are stuck with decade-old dirtier buses.
- Michigan is losing out on nearly $100 million a year in federal funds available for new buses because the state cannot provide the necessary matching funds. We are losing out on far more potentially available for rail projects.
- Other cities and states are outcompeting Michigan for new economy businesses and young, smart workers because Michigan has not invested in the modern rapid transit that is vital for vibrant, attractive cities. Several proposals for rapid transit are being considered in Detroit, Grand Rapids, Ann Arbor and elsewhere, but are unlikely to be built without some level of state investment.
This transportation funding measure could significantly turn around transits’ struggles. While the proposal is not final and changes may occur, as proposed, this proposal could result in enormous benefits for transit riders, potential riders and the state as a whole:
- It could provide full matching funds to local bus agencies, allowing them to expand their bus service to meet growing demand. This could mean running buses more frequently, adding new evening and weekend service, or even adding new routes.
- Bus agencies could access $100 million in federal funds to buy up to 300 new cleaner-burning, fuel-efficient hybrid buses a year, decreasing pollution and saving money.
- Greater Detroit and other Michigan cities could make much-needed investments in rapid transit, including Woodward light rail, Grand Rapids bus-rapid transit, and the Detroit-Airport-Ann Arbor commuter train, just to start with. With state investment, we could likely access significant additional federal investment too. This would be critical to revitalizing our cities and attracting top young talent and the new economy businesses.
- This new transit investment could create nearly 10,000 jobs and spur over $1 billion in new development, based on the experience of other states that have invested in transit. Nationally, every dollar invested has returned on average $6-8 in local economic activity. Now Michigan can achieve the same!
For decades Michigan has been underfunding our transportation system, especially public transit. This proposal will not fully solve all our transportation funding needs. Michigan cities need new local funding options. Eventually we will need an even greater investment. This proposal will however solve our immediate funding crisis and provide the jump start in rapid transit that Michigan needs.
We cannot afford to wait until a new legislature is seated and learns about our transportation needs all over again. Tell your state legislators, Senate Majority Leader Mike Bishop (R-Troy), and House Speaker Andy Dillon (D-Redford) not to end the year without making the transit investment Michigan needs.