Encouraging Transportation Investment Saginaw County Chamber of Commerce Percolator Breakfast May 2, 2013 Horizons Conference Center Rich Studley, President & CEO Michigan Chamber of Commerce By:

Michigan Chamber Legislative Priorities: Transportation GOAL: Encourage Transportation Investment Chamber Members Advocate: Increasing state & local investment in roads and public transportation by at least $1.6 billion per year by revising and modernizing the method of funding in a way that ensures costs are borne primarily by users of the system.

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

 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 Michigan’s Economy

Innovation and Efficiency MDOT has saved an average of $63M/year since 2009 on efficiencies & innovations. 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

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

Conditions are Getting Worse

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

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

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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)

Making investments to improve our state’s roads and bridges is sound economic policy. The conditions of Michigan’s roads and bridges continue to deteriorate. There is not enough money being generated to support our infrastructure system.

The average Michigan citizen pays $357 annually in unnecessary repairs to their vehicles due to poor roads. If we fix the roads, 1,000 lives over the next 10 years could be saved. Investing in our roads now benefits everyone in the state.

Leading businesses. Moving Michigan forward. Any Questions?