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Michigan Department of Transportation Michigans Infrastructure Needs and Funding 2013.

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Presentation on theme: "Michigan Department of Transportation Michigans Infrastructure Needs and Funding 2013."— Presentation transcript:

1 Michigan Department of Transportation Michigans Infrastructure Needs and Funding 2013

2 Transportation Is The Backbone of Michigans Economy 35% of US/Canada trade flows through Michigan $520 billion in freight is moved each year on Michigans highways, rail and water ports Trucking accounts for 67% of all freight tonnage moved in Michigan 2

3 Operation of bus transit systems contribute an estimated $740 million to the economy each year Passenger rail is expected to generate between $ billion in net economic benefit annually Aviation contributes more than $20 billion/year 80% of Michigan tourism is auto-based - $17.7 billion in total visitor spending in 2011 Transportation Is The Backbone of Michigans Economy

4 4 Asset Asset Management

5 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

6 6 Trunkline Pavement Condition has Peaked

7 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 7

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10 Statewide Average Salt Costs 10

11 Time to Act11 Michigan is moving from underinvesting in transportation, to disinvesting in transportation. 2008, Transportation Funding Task Force Michigans roads continue to deteriorate at an increasingly rapid rate… 2010, Transportation Asset Management Council Report If we are going to reinvent Michigans economy, we have to reinvest in Michigans infrastructure. 2011, Special Message on Infrastructure 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 arent repaired, many wont be coming back. 2012, Michigan Lodging and Tourism Association 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 Investing money in our roads and bridges today saves money in the long run , 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… whats more, well 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 , Kalamazoo Gazette If we are going to reinvent Michigans economy, we have to reinvest in Michigans 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 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 , Detroit News Transportation infrastructure must become a priority. … 2011, Lansing State Journal Editorial

12 Conditions are Getting Worse 12

13 Pay Now or Pay Later 13

14 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 14

15 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

16 REGIONAL COMPARISON 16

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18 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 – MDOTs program and lettings are 1/3 less in 2013 than what they were 4-5 years ago ($650M vs. $930M) 18

19 Questions? Providing the highest quality integrated transportation services for economic benefit and improved quality of life. 19


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