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Public Sector Consulting Finds Michigan Needs $9 Billion Annually for Road Maintenance and Investments

March 7th, 2023 – Lansing, Michigan

This morning in Lansing, Michigan Infrastructure and Transportation Association (MITA), Michigan Chamber of Commerce, and Public Sector Consulting (PSC) came together to publicly discuss PSC’s analysis of MITA’s Infrastructure investment needs. The analysis is centered on evidence and options for maintaining and replacing decayed roadways in the entirety of Michigan, and can be found HERE.

In their conclusion PSC states, “… the cost to operate Michigan’s transportation system is between $7.2 and 9.0 billion per year.” PSC also states, “Compared to public estimates of funding available to MDOT (Michigan Department of Transportation) from the federal, state, and local sources, there is a funding gap of between $2.1 and $3.9 billion per year.” In order to close this funding gap PSC has proposed 5 options that have been used elsewhere in the world successfully. These options are listed below:

  1. “Increase the motor fuel tax” – In the meeting this morning they stated it’d be a raise of $.74.
  2. “Increase the motor fuel tax and assess the motor fuel tax based on a per dollar basis”
  3. “Increase or change the appointment of the sales taxes to meet specific needs like transportation” – An increase of 3% was referenced in the meeting this morning.
  4. “Allow local governments to charge their own sales taxes to meet specific needs like transportation”
  5. “Pilot mileage-based user charges” – Such as toll roads.

During the meeting it had been reiterated by multiple speakers that if Michigan doesn’t come up with a plan now the price of maintenance and new roads will on inflate. Below is a list of professionals who spoke to this analysis and what part they play in reference to the issues.

  • Maggie Pallone, Vice President, Public Sector Consultants
  • Rob Coppersmith, Executive Vice President of the Michigan Infrastructure and Transportation Association
  • Jim Holcomb, President & CEO of the Michigan Chamber of Commerce
  • Ed Noyola, Chief Deputy and Legislative Director of the County Road Association of Michigan
  • Brad Williams, Vice President of Government Relations at the Detroit Regional Chamber
  • John LaMacchia, Director of State & Federal Affairs at the Michigan Municipal League

Holcomb had said multiple times, “We’re willing to work with anyone to fix the problem for good.”

Brad williams stated, “…same issue since 1903.”

Noyola had expressed how this is a bi-partisan issue, and that, “we need to up the pressure” allowing the process of choosing a solution through policy to really gain momentum.

2023 MITA Infrastructure Investment Needs 

(Quotes were taken directly from live Zoom meeting audio and The attached link above)

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